- 1). Locate an approved credit counseling agency in your area. You may take classes in person or online. Current bankruptcy laws mandate that any person or business filing a bankruptcy petition must have attended an approved credit counseling class within 180 days of filing their petition.
- 2). File bankruptcy form B1 titled "Voluntary Petition" for a Chapter 11 bankruptcy. This is the form that legally declares the bankruptcy and provides an automatic stay, meaning that creditors may not try to collect their debts during this period. Once you file a Chapter 11 voluntary petition, you become a "debtor in possession" so you can continue to run your business during the bankruptcy proceeding.
- 3). Pay your filing and administrative fees to the court clerk, or file bankruptcy form B3A to ask that the fees be split into payments. The United States Court website states that the final payment must be made within 120 days following your application date.
- 4). File bankruptcy form B25A titled "Plan of Reorganization in Small Business Case under Chapter 11," followed by bankruptcy form B26 titled "Disclosure Statement for Small Business filing Chapter 11." These forms will include details of how you will reorganize your business to make it viable, along with a disclosure statement as to the current financial state of your business.
- 5). File bankruptcy form B25C titled "Small Business Monthly Operating Report." You must file this form monthly during the time of the bankruptcy proceeding. It enables you to give a detailed monthly report of monies taken in and paid out. This form was enacted to supervise debtors in possession.
- 6). File any other forms deemed necessary by the court specific to your Chapter 11 bankruptcy. For example, debtors filing for a Chapter 11 bankruptcy that include a husband and wife must file bankruptcy form B9E titled "Chapter 11 Individual or Joint Debtor Case." Alternatively, a business that is a partnership or corporation must file bankruptcy form B9F titled "Chapter 11 Corporation/Partnership Case."
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