Why might someone file chapter 11 instead of chapter 13?
The most common reason for filing for relief under chapter 11 rather than chapter 13 is due to the debt limits. People who owe over $383,175 in unsecured debt or $1,149,525 in secured debt cannot file for chapter 13. However, there are other important reasons for opting to file for chapter 11. Chapter 11 allows debtors to structure their repayment plans for longer than 5 years, which can be vital in proposing a plan that allows debtors with limited incomes to repay their debts through a plan. Chapter 11 also provides greater freedom and flexibility because no Trustee is appointed. While it can be cost prohibitive for some people, for others it is a great option. See our faq on Chapter 11 for more information.