Chapter 11 Plan. Chapter 11 is also like a chapter 13 in that you propose a payment plan, but in a chapter 11 the creditors also have an opportunity to vote on your plan. If enough creditors vote in favor of the plan it is usually approved. An approved chapter 11 plan essentially rewrites many of the contracts the debtor has with the creditors and the court then sends everyone back out on the street to live under their new arrangements.

Success in Chapter 11. Many chapter 11 cases do not succeed for the simple reason that a business which is hopelessly unprofitable cannot be made so by bankruptcy lawyers and the court system. When chapter 11 cases do succeed, it is usually because the business, at its core, is a genuinely profitable business that needs some time to reorganize, perhaps shed some unprofitable operations, and liquidate underused assets.

Relative Expense. Chapter 11 cases require an enormous amount of time and work by the attorney if the case is to succeed. In time expended these cases do not even resemble chapter 7 or chapter 13 cases. Furthermore, chapter 11 cases require the most skillful attorneys. Not every bankruptcy attorney is capable of properly handling a chapter 11 case. These cases are really a rarefied specialty within a specialty area of law. Consequently, fees in chapter 11 cases are significantly higher than other chapters, no question about it. Retainer fees are in the thousands, not hundreds. The work is voluminous, the stakes are high, and time is often in short supply. It is stressful work. Our firm is fortunate to have Lisa C. Cohen as one of its attorneys. She has handled many, many chapter 11 cases. You can confirm her reputation easily by asking other bankruptcy attorneys in North Central Florida.