Chapter 11 for Individuals: The Reorganization Nobody Tells You About
When Chapter 13's Debt Limits Aren't Enough
By Attorney Juan C. Burgos, Esq. | Serving Orange, Osceola, Seminole & Polk Counties
TL;DR / Direct Answer: Yes, individuals can file Chapter 11. It's the standard route when your debts exceed Chapter 13's limits — currently $526,700 in unsecured debt and $1,580,125 in secured debt for cases filed between April 1, 2025 and March 31, 2028. Individual Chapter 11 has no debt ceiling at all, and you typically stay in control of your assets as "debtor in possession" while you reorganize. If most of your debt is business-related, Subchapter V may get you there faster and cheaper.
Chapter 13 has a hard ceiling on how much debt it can handle, and that ceiling gets crossed more often than people expect: multiple financed investment properties, a large personal guarantee on a failed business loan, or a judgment that's simply too big for a standard repayment plan. Cross the line — even by a dollar — and the courthouse door to Chapter 13 closes. That's where individual Chapter 11 comes in.
Unlike Chapter 13, Chapter 11 places no cap on how much you owe. It's more expensive and more involved, but for the right debt profile it's the only door still open. Understanding who actually needs it — and where Subchapter V can shortcut the cost — is the difference between an efficient reorganization and years of unnecessary expense.
Who Typically Needs an Individual Chapter 11
Real Estate Investors
Several financed properties whose combined mortgages blow past the Chapter 13 caps.
Business Owners with Personal Guarantees
When the business failed, the guarantees followed them home. If the debts are mostly business-related, Subchapter V is usually faster and cheaper.
Professionals with Large Judgments
Judgment debt or tax liabilities too large or too complex for a Chapter 13 plan to handle.
How It Differs from Chapter 13
| Chapter 13 | Individual Chapter 11 | |
|---|---|---|
| Debt limits | Capped by statute — $526,700 unsecured / $1,580,125 secured for cases filed 4/1/2025–3/31/2028, adjusted every three years by the federal courts. See current amounts (uscourts.gov) | None |
| Who runs the case | Standing trustee | You, as debtor in possession |
| Plan length | 3–5 years | Flexible — negotiated |
| Creditor vote | No voting | Classes vote (cramdown available) |
| Cost | Lower | Higher — reserved for cases that need it |
Chapter 13's debt limits change periodically by statute — and by pending legislation in Congress that could raise them again. We confirm the current figures against your totals at the consultation, using the official published amounts.
The Subchapter V Shortcut Most People Miss
If at least half your debt arose from business activity — including a business that already closed — you may qualify for Subchapter V as an individual under 11 U.S.C. § 1182(1). It delivers Chapter 11's reorganizing power at a fraction of the cost, with no creditor-approval requirement and its own, much higher debt ceiling ($3,424,000 as of April 1, 2025). This is often the best-kept secret for former business owners drowning in personal guarantees. See the Subchapter V guide →
Want the full picture of traditional Chapter 11 first? Read our Chapter 11 guide, or see how Chapter 13 compares if your debts fall within its limits.
Frequently Asked Questions
Can a person file Chapter 11 without owning a business?
Yes. Chapter 11 is available to individuals; it's simply used less often because Chapter 13 handles most consumer cases within its debt limits.
What are the current Chapter 13 debt limits?
For cases filed between April 1, 2025 and March 31, 2028, Chapter 13 caps out at $526,700 in unsecured debt and $1,580,125 in secured debt. These figures adjust automatically every three years under federal law, and Congress is also considering legislation that could raise them again. Because they can change, we always confirm the official published amounts against your totals at the consultation.
Do I keep my properties in an individual Chapter 11?
Keeping and restructuring assets is typically the point — that's why investors choose it over liquidation. You operate as debtor in possession throughout the case.
Is it expensive?
More than Chapter 13, less than losing the portfolio to creditors. If Subchapter V fits your situation, costs drop dramatically compared to traditional Chapter 11.
Find Out Which Door Is Open to You
Free consultation — bring the full debt picture and leave knowing whether it's Chapter 13, individual Chapter 11, or Subchapter V. Se habla español · Falamos português.
Juan C. Burgos, Esq. | Florida Bar No. 84056 | Serving clients in English, Spanish, and Portuguese
Legal Disclaimer: This article is for general educational purposes and does not create an attorney-client relationship or substitute for individual legal advice. Debt limit figures change periodically by statute; confirm current numbers with an attorney before relying on them. Juan Burgos Law is a debt relief agency under federal law.
Juan was great. Highly recommend his office! The situation was on a really tight timeline and he followed through. He was very empathic without sugar coating anything. Communication was always open an… Juan was great. Highly recommend his office! The situation was on a really tight timeline and he followed through. He was very empathic without sugar coating anything. Communication was always open and timely. Appreciate the extra steps he took to make sure the case was solid and felt very prepared for the hearing.
Muy agradecida con el licenciado Burgos, Excelente trabajo, explicación al 100% y manejo de caso muy profesional. Experiencia única. Mi caso llego a complicarse con la Trustee sin embargo el licenciad… Muy agradecida con el licenciado Burgos, Excelente trabajo, explicación al 100% y manejo de caso muy profesional. Experiencia única. Mi caso llego a complicarse con la Trustee sin embargo el licenciado manejo la situación al nivel que sali victoriosa. Estan en excelentes manos.
Exelente trabajo muy satisfecha con los resultados de un buen abogado y el trato exelente
El Lic Burgos desde el primer momento en que me comuniqué con él me mostró atención y profesionalidad. Lo recomiendo enteramente por su transparencia y su din de escuchar tu situación, gracias Lic Bur… El Lic Burgos desde el primer momento en que me comuniqué con él me mostró atención y profesionalidad. Lo recomiendo enteramente por su transparencia y su din de escuchar tu situación, gracias Lic Burgos.
El Sr. Burgos fue el único abogado que se reunió conmigo y aceptó mi caso pocos días antes de mi audiencia de bancarrota. Llamé a todos los abogados de Kissimmee y Orlando, e incluso los más prestigio… El Sr. Burgos fue el único abogado que se reunió conmigo y aceptó mi caso pocos días antes de mi audiencia de bancarrota. Llamé a todos los abogados de Kissimmee y Orlando, e incluso los más prestigiosos no me trataron como él. Hablé con varios abogados; algunos rechazaron mi caso porque no hablaban español, y otros lo rechazaron por diferentes razones. Le doy cinco estrellas y lo recomiendo ampliamente por su excelente trabajo y buena comunicación.