Chapter 11 Bankruptcy | RK Pruitt Law Firm
Chapter 11 Bankruptcy

Restructure debt. Protect operations. Keep the lights on.

Chapter 11 lets businesses—and some individuals—pause most collections and reorganize debt under court oversight, stabilizing cash flow while a workable plan is built and confirmed.

Businesses needing breathing room

Retail, restaurants, professional services, startups—Chapter 11 can stop lawsuits, halt garnishments, and create space to reorganize.

Individuals with complex debts

High income or secured debts beyond Chapter 13 limits? Chapter 11 (often Subchapter V) may be the right tool.

Why Chapter 11?

  • Automatic stay pauses most collections & lawsuits
  • Restructure secured & unsecured debts
  • Renegotiate or reject burdensome leases/contracts
  • Keep operating while a plan is built and confirmed
What You’ll Need

Documents & info to gather

Financial statements (12–24 months)
Complete creditor list
Executory contracts & leases
Asset & collateral list (titles, UCCs, liens)
Recent tax returns & payroll reports
Insurance & licenses (proof of active coverage)
Organized records speed filing and help avoid delays with the court or U.S. Trustee.
Eligibility & Fit

Is Chapter 11 right for you?

  • You can operate viably if debt is restructured
  • You need time to renegotiate leases or contracts
  • There’s litigation/collections pressure a stay could pause
  • For individuals: your debt exceeds Chapter 13 limits
Process

Chapter 11 in 6 steps

1
Strategy session
Cash flow, creditors, goals—decide Subchapter V vs. traditional Ch. 11.
2
File & automatic stay
Filing pauses most collections; first-day motions stabilize operations.
3
Disclosures & reporting
Prepare schedules, statements, and monthly operating reports.
4
Plan & disclosure
Propose how debts will be treated; explain feasibility and projections.
5
Creditor input
Creditors vote in traditional Ch. 11; Subchapter V may not require votes if standards are met.
6
Confirmation & exit
Court confirms the plan; you operate under it to completion.
Subchapter V

Small-business advantages

  • Streamlined process and typically lower administrative costs
  • A trustee assists, but owners usually keep control
  • Plan can be confirmed without creditor votes if requirements are met
Ask counsel whether you qualify for Subchapter V and how current debt thresholds apply.
FAQs

Quick answers

Can I pick which debts to pay?

Your plan must follow the Bankruptcy Code. Similar creditors are grouped and treated fairly.

Can I break a bad lease?

Yes—burdensome leases/contracts can be rejected under Code rules.

Will this be public?

Court filings are public records, but many companies reorganize successfully.

How do I start?

Gather the documents above and discuss with counsel whether Subchapter V or traditional Chapter 11 fits best.

Informational only—does not create an attorney-client relationship.