Chapter 11 Bankruptcy: Chapter 11 Bankruptcy is designed for Businesses that have a current and future profitable business that is worth saving and needs to reduce and restructure past debt obligations. Some of the benefits of Chapter 11 are as follows: • Payout debt up to a 6 year period. • Reduce and eliminate most tax penalties on priority tax claims. • Work out deals with taxing authorities in Bankruptcy. • Reduce unsecured tax to as little 10% of the claim depending on the asset structure of the corporation. • Reject leases that are burdensome on the business. • Stop all lawsuits and collection actions. • Ability to offer new lenders D-I-P protection to secure funding. • Sell assets free and clear of leans pursuant to Section 363. Individuals can also utilize Chapter 11 in the following circumstances: • Secured debt over the Chapter 13 Debt Limit. • Unsecured debt over the Chapter 13 Debt Limit. • Unique circumstances that might warrant taking their case to a creditor vote. Chapter 11 is the most expensive Bankruptcy and thus should only be used in these circumstances and the Debtors must be prepared to: • Attend status conferences. • File operating reports every month. • Pay secured debt claims currently after the bankruptcy filing. • Stay current with leases that the Debtor wishes to affirm. • Pay the administrative costs inherent in Chapter 11.