Chapter 11 for an individual

Yes, you can keep some of the properties in a chapter 11, however, Chapter 11 is very expensive. The court costs to file alone are over $1000 and many chapter 11 attorneys will charge initial retainers of about $20,000. Additionally, during the pendency of the case, you must make quarterly payments to the United States Trustee based on the amounts you will be disbursing through the chapter 11. You do not indicate if you have equity in any of these properties, nor if you have too much income to file a chapter 7, but you need to consult with a bankruptcy attorney to figure out what the best way to go is. You might be able to keep some of the properties, but this depends on several factors not mentioned in your question. In regards to properties being foreclosed on, yes a chapter 11 can help you keep them. Additionally for the properties you do not reside in, you can even "cram down" the mortgages, so that you only pay fair market value, plus interest for the property instead of the entire loan amount. Of course, this is dependent on your ability to pay, and a consultation with a bankruptcy attorney, will help you figure out if this is the best course of action fdor you.

The real questions is whether you want to reorganize or get a fresh start.

If you are trying to protect a significant equity position or there was an ability to generate a lot of income an 11 might make sense. If you are looking for an orderly way to dispose of property and want to keep your home and retirement accounts etc., a chapter 7 might be a better fit as it would allow you to build up capital without having any debt.

I would be happy to answer any of your other questions

Your question is whether you can keep certain real estate if you seek personal Chapter 11 protection and, more generally, how the process works. This forum is too limited to provide a complete answer, but there are some things you need to know before deciding whether Chapter 11 reorganization is right for you.

Despite being available to individuals, Chapter 11 is primarily a tool for reorganizing an ongoing business. Since it was not designed for individual debtors Chapter 11 is generally not a good "fit." But for those who have more than a certain amount of secured debt as in your case, Chapter 11 will allow you to possession of your assets and conduct your own affairs, albeit with the oversight of the Trustee.

A Chapter 11 debtor is provided with a certain amount of time (180 days, subject to extension) in which to analyze its situation, negotiate with its creditors, and develop a plan of reorganization. Chapter 11 provides for appointment of a group of unsecured creditors (usually 3 to 7) to an official committee that will have an important role in the case. The Debtor generally conducts its plan negotiations with the committee (acting on behalf of the unsecured creditors); and the committee, with court approval, can hire professionals at the Debtor’s expense. The expenses of the committee are paid for by the Debtor too. The committee retains a persuasive voice with the Court.

Chapter 11 is geared towards negotiation and consummation of a plan of reorganization that is designed to expunge the Debtor’s old debts and repay them with new debt or equity. Creditors who depend on future recoveries become, in essence, “business partners” with the Debtor and often their percentage of recovery is tied to the success of the reorganized entity.

There is no prohibition in the Bankruptcy Code against liquidating a company under Chapter 11 - in fact you may file a Chapter 11 case with the explicit intention to liquidate some or all properties, or even to convert to a Chapter 7 at a pre-appointed time.

Chapter 11 is available to any person or entity except stockbrokers and commodity brokers. Therefore, it is available to individuals. Note that here is no requirement that a Debtor be “insolvent” to file a petition under Chapter 11 so it is extremely flexible.

I hope this information, which has only scratched the surface, has been helpful. Feel free to contact our office with additional specific questions. Good luck in your future endeavors.