Chapter 11 is the reorganization chapter - it lets businesses and high-debt individuals restructure and keep operating while repaying creditors over time. This screener walks through the key eligibility factors, including whether you qualify for the faster, lower-cost Subchapter V small business track.
Chapter 11 is complex and expensive without the right attorney. A bankruptcy lawyer confirms your chapter, maps your reorganization strategy, and protects your business from day one. Free initial consultation in most areas.
Almost any person or business entity can file Chapter 11. That includes sole proprietors, partnerships, LLCs, corporations, and individuals whose debt exceeds Chapter 13's limits.
Railroads, stockbrokers, commodity brokers, and insurance companies are excluded - they have separate insolvency regimes. But virtually every other business or individual qualifies as a debtor under Chapter 11.
The real question isn't whether you can file - it's whether Chapter 11 makes financial sense for your situation. Use the bankruptcy chapter selector to compare all 3 chapters side by side before deciding.
Subchapter V is a streamlined Chapter 11 track created by the Small Business Reorganization Act of 2019. It's dramatically faster and cheaper than traditional Chapter 11.
To qualify, your total secured and unsecured debt must not exceed $7,500,000 (as of 2024 - this figure adjusts periodically). At least 50% of that debt must have arisen from commercial or business activity.
Subchapter V eliminates the creditors' committee (a major cost driver), allows the debtor to retain equity without paying unsecured creditors in full, and requires a plan to be filed within 90 days. It's the default recommendation for most small businesses.
If your debt is above the Subchapter V limit, you'll need traditional Chapter 11. The Chapter 13 repayment calculator can show whether Chapter 13 is a lower-cost alternative if you're an individual with business debt.
Individuals with secured and unsecured debt totaling more than $2,750,000 don't qualify for Chapter 13 (as of 2024 limits). Chapter 11 has no debt ceiling for individuals.
Chapter 11 for individuals (sometimes called "Chapter 20" when combined with a prior Chapter 7) allows restructuring of mortgage debt, business debt, and complex obligations that Chapter 13 can't handle. The trade-off is cost - individual Chapter 11 cases average $15,000 to $30,000 in attorney fees versus $3,000 to $5,000 for Chapter 13.
The debtor files a disclosure statement and plan of reorganization outlining how creditors will be treated. Creditors vote on the plan by class.
The plan can reduce interest rates on secured debt, extend repayment terms, strip down underwater liens, and pay unsecured creditors a fraction of what's owed. Confirmation requires meeting specific legal tests including the "best interests of creditors" test and the "feasibility" test.
In Subchapter V, only the debtor can file a plan (no competing plans from creditors), and the trustee plays a facilitative rather than adversarial role. Plan confirmation is faster and creditor approval isn't always required if the plan is "fair and equitable."
Once confirmed, the plan binds all creditors - including those who voted against it. This is the core power of Chapter 11: it lets you restructure obligations over objections of individual creditors as long as the plan meets statutory requirements. Review your debt discharge options to understand which obligations survive the reorganization.