A Chapter 11 proceeding commences with the filing of a petition with the bankruptcy court located in the area where the debtor has a residence or domicile. A Chapter 11 bankruptcy petition may be a voluntary petition or an involuntary petition. A voluntary petition is filed by the debtor and an involuntary petition is filed by creditors.
Along with the petition a debtor should file with the court:
- schedules of assets and liabilities;
- schedule of current income and expenditures;
- schedule of executory contracts and unexpired leases; and
- statement of financial affairs.
A petition under Chapter 11 should include general information such as name of the debtor, social security number or tax identification number, residential address, location of primary assets, the debtor’s plan of reorganization of assets, and a request for relief.
A written disclosure statement and a plan of reorganization should be filed with the court. The disclosure statement contains information regarding the assets, liabilities, and business affairs of the debtor adequate to allow a creditor to make conversant decision about the debtor’s plan of reorganization. The plan of reorganization includes classification of claims and indicates how each class of claims will be considered under the plan.