Depending on the amount of debt that you owe, seeking a Chapter 7 or Chapter 13 may be out of the question. That still leaves the option of filing a Chapter 11 bankruptcy. Sometimes thought of as an option for business entities only, this form of bankruptcy allows you to reorganize your debt with the approval of your creditors. In order to receive this kind of protection, there are certain responsibilities that you will need to assume. Here are four examples of responsibilities that the Kepple Law Group will discuss with you:

Close Your Current Bank Accounts

One of the requirements for being approved for a Chapter 11 is closing all of your existing bank accounts. You will then open accounts at a financial institution that’s approved by the court. These new accounts are often referred to as debtor-in-possession accounts. You will use them for all disbursements as well as repositories for all income.  If you’re not sure which bank in your area is approved for use by the court, the Kepple Law Group can provide you with that information for institutions around the Central Arizona region.

File Monthly Income and Expense Reports with the Court

Part of the Chapter 11 plan will require that you file monthly income and expense reports with the court. This provides evidence that you’re operating in compliance with the approved plan and that you are sending out payments to your creditors. In some jurisdictions, there are specific forms that must be used in order to comply with the court’s requirements. Other jurisdictions may require that you remit balance sheets and income/expense statements that are in line with generally accepted accounting practices. This is another area where the Kepple Law Group can help you obtain copies of any forms the court requires.

Remit Quarterly Fees to the U.S. Trustee

The court is not likely to appoint a local trustee to your Chapter 11 unless there are some sort of extenuating circumstances. For individuals, they are usually responsible for managing the plans and reporting their actions to the court. One of those actions will be remitting the required fees to a U.S. trustee with jurisdiction over your area. These fees must be remitted on a quarterly basis and by the date identified in the approved plan.

Pay Off Debts in the Sequence Specified in the Plan

Some of your debts may be considered priority and must be settled before moving on to other  forms of debt. There may be a specific time frame for certain kinds of priority debt. For example, any state or federal taxes that you owe should be settle during the first five years of your Chapter 11. By following the outline found in the approved plan, you should be able to follow the sequence and retire the debts in a manner that the court and your creditors have approved.


While a Chapter 11 is not the solution for everyone, it can be the right choice in certain cases. Call the Kepple Law Group today and request a free 30-minute consultation. By the end of that meeting, you’ll have a good idea if seeking a Chapter 11 bankruptcy would be the best solution for everyone concerned.