Thank you for your question.
The Chapter 13
thresholds are adjusted for inflation every year and change March 15. For Florida, the numbers above which a Chapter 7 case is presumed to be an abuse of the BK Code
1 person 2 3 4
$40,029 $50,130 $54,594 $65,135
As you know, this is calculated on a 6-month running average.
The consumer Chapter 11 thresholds are
If you haven't gone here yet, I recommend it because it is straight from the source, Even attorney websites trying to serve a public education function can get outdated. It's rare, but I've even seen a small few be wrong. Try this: http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter11.aspx
From one of the sub-pages there, this explains how a Chapter 11 Plan can be approved even over a creditor's objection--short version is that the Debtor has to commit all "disposable" income to the Plan.
In the case of individuals, chapter 11 bears some similarities to chapter 13. For example, property of the estate for an individual debtor includes the debtor's earnings and property acquired by the debtor after filing until the case is closed, dismissed or converted; funding of the plan may be from the debtor's future earnings; and the plan cannot be confirmed over a creditor's objection without committing all of the debtor's disposable income over five years unless the plan pays the claim in full, with interest, over a shorter period of time. 11 U.S.C. §§ 1115, 1123(a)(8), 1129(a)(15).
Business and consumer Chapter 11 cases have several important differences. One is that a "liquidation" Plan discharges an individual but not a business from all debts not otherwise paid in the Plan. The debtor still has to complete the Plan. When the debtor is an individual, confirmation of a liquidation plan will result in a discharge (after plan payments are made) unless grounds would exist for denying the debtor a discharge if the case were proceeding under chapter 7 instead of chapter 11. 11 U.S.C. §§ 727(a), 1141(d).
When the debtor is an individual, confirmation of a liquidation plan will result in a discharge (after plan payments are made) unless grounds would exist for denying the debtor a discharge if the case were proceeding under chapter 7 instead of chapter 11. 11 U.S.C. §§ 727(a), 1141(d).
So, child support an alimony debts, liability judgments for drunk or drugged driving, and so forth, still don't get discharged in a Chapter 11 case.
What can get confusing is that the Plan is said by the statutes to "discharge" the debts in Chapter 11, but there is also a 60-day time limit set by the court after which no creditor can object to discharge of their special little debt. So, even though the discharge is not fully and completely granted until the Plan is completed, it is considered done much earlier. The Debtor knows that even non-dischargeable debts under Section 523 still get discharged 60 days after the notice
of deadline goes out. That deadline applies to all chapters applicable, 7, 11, and 13.