Who Can File for Chapter 11?

September 16, 2024

Chapter 11 bankruptcy can be filed by a wide range of entities, including:

Businesses: Corporations, partnerships, joint ventures, and limited liability companies (LLCs) can file for Chapter 11 to reorganize their debts and continue operating. 468
Individuals: Individuals with significant debt levels that exceed Chapter 13 limits can also file for Chapter 11. This includes individuals who are not engaged in business but have substantial debts. 346
Railroads: Unlike Chapter 7, railroads can file for Chapter 11 bankruptcy. 38
Small Businesses: Small businesses with total secured and unsecured debts below specific thresholds (e.g., $7,500,000 for subchapter V cases) can file for Chapter 11 under special categories designed to streamline processes and reduce costs. 17

The key requirement is that the debtor needs to reorganize their finances, and there are no specific debt-level limits or required income for filing Chapter 11. However, stockbrokers and commodity brokers are not eligible to file for Chapter 11 and must file under special provisions of Chapter 7. 468