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Can I file for Chapter 11 as an individual?

By far the most common bankruptcy cases for individuals are either Chapter 7 or Chapter 13. Chapter 11 bankruptcy is often categorized as a variety of bankruptcy that is reserved for businesses only. However, this is not the case. It is indeed possible for individuals to file bankruptcy under Chapter 11 in certain instances. According to the American Bankruptcy Institute, Chapter 11 can be filed by individuals who may not qualify for Chapter 13, or may need specific provisions while reorganizing their debt.  

Chapter 11 and Chapter 13 Bankruptcy are somewhat similar in that both are considered to be reorganization approaches to debt. To contrast, a Chapter 7 bankruptcy typically wipes the slate clean of debt, but often at the price of any assets the debtor holds. While both Chapter 13 and Chapter 11 are more focused toward reorganization, a huge difference between the two is that there are caps on the amount of unsecured and secured debts that debtors may hold in order to qualify for Chapter 13, while in Chapter 11 these caps do not exist. 

There is also no income requirement in a Chapter 11 bankruptcy, where Chapter 13 requires a certain amount of income to be eligible for. Chapter 11 bankruptcies are commonly filed for individuals who may have no income currently, but do possess certain assets that can be sold and the funds used to pay debts through a Chapter 11 reorganization. In this instance, the individual would not be eligible for a Chapter 13 due to low income. 

It is indeed possible for an individual to file under Chapter 11 if certain specifics are match. Chapter 11 individual bankruptcies are less common than Chapter 13 and Chapter 7, but they still exist. 

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