Requisitions in Filing for A Chapter 11 Bankruptcy

by admin on March 28, 2012

Businesses have obligations they need to face. As an example, paying back the money they owe to help finance their business is a must. But there may come a time that a business cannot pay for their obligations anymore. Of course, one cannot simply run away from what they owe. They have to file legally that they do not have the means to financially pay for it. This is the situation among businesses filing for a bankruptcy. Businesses can avail on the different types of bankruptcy that are suitable for their situation. As an example, Chapter 11 bankruptcy is one of the most popular types. And just recently, KODAK filed for a Chapter 11 bankruptcy.

Debts still need to be paid even if one has filed for a Chapter 11 bankruptcy. One needs to understand that when one avails for this kind of bankruptcy, restructuring the debts and reorganizing business operations will happen so that you can pay for what you owe. So, if ever you plan to avail of this chapter 11 bankruptcy, here are the requirements you need to meet:

Means Test

• This is a necessity for a Chapter 11 bankruptcy.
• A U.S. Bankruptcy form 22B must be filled up completely as a way of assessing your income.
• This test will also determine how a reasonable restructured repayment plan can be developed.
• As there are other bankruptcy options available, this will also determine if the chapter 11 bankruptcy is your best option.

Petition

• Chapter 11 bankruptcy will require everyone to completely fill out a petition.

Matrix of Creditors

• Creditors must be listed as arequirement of the U.S. Bankruptcy Code. This list should also contain information like the creditor?s contact information, the amount of money owed, and the creditor?s account number.

Filing Fee

• Before Bankruptcy form 3A will be submitted, a corresponding fee must be paid. Although there are variations on the amount, it is usually around U.S $1, 000.

Whenever one files for a bankruptcy, people do not consider it surprising at all. So, there is no need for one to be ashamed whenever there is a need to file for one. However, being careful is a necessity here. Arizona is quite an example on how they ask for help from trusted Arizona bankruptcy lawyers.

Tagged as: Arizona Bankruptcy, Arizona Bankruptcy Lawyers, bankruptcy, finance, law, tax

Source: http://www.themoneynewspaper.com/requisitions-in-filing-for-a-chapter-11-bankruptcy.html

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