Chapter 11 Bankruptcy in Florida
Chapter 11 lets Florida businesses and high-debt individuals reorganize instead of liquidating. Orlando attorney, Middle District practice. Most small businesses qualify for faster Subchapter V.
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By Juan C. Burgos, Esq. | Business Bankruptcy Attorney | Florida Bar Active Status | Updated: 2026
Chapter 11 is the reorganization chapter of the U.S. Bankruptcy Code. Instead of shutting down and liquidating, a business (or an individual with debts too large for Chapter 13) proposes a court-approved plan to restructure what it owes — and keeps operating while it does.
When an airline or retail chain “files Chapter 11” and keeps flying or selling, this is the law they’re using. It’s not just a tool for big corporations, either — businesses of every size in Central Florida use it, and so do some individuals.
Before you read further: most small businesses belong in Subchapter V
If your business owes $3,424,000 or less (2026 limit), Congress built a faster, dramatically cheaper version of Chapter 11 for you — Subchapter V. No creditors’ committee, no quarterly U.S. Trustee fees, a 90-day plan, and you keep ownership.
Read the Subchapter V guide — that page, not this one, is where most Orlando small business owners should start.
Own an auto dealership or a restaurant specifically? Debt in those industries almost always comes with a personal guarantee attached — our small business bankruptcy guide walks through what that means for your situation.
This page covers traditional Chapter 11: larger debts, complex structures, and individual filings.
Who uses traditional Chapter 11
🏢Businesses over the Subchapter V debt limit or with complex creditor structures.
👤Individuals whose debts exceed the Chapter 13 caps — common with multiple investment properties or large personal guarantees. Can you file Chapter 11 as an individual? Learn more →
🛠Companies needing Chapter 11-specific tools: rejecting burdensome leases and contracts, selling assets free and clear (§363), restructuring secured debt over objection.
How a Chapter 11 case works
1. Petition filed: for Central Florida, in the U.S. Bankruptcy Court, Middle District of Florida, Orlando Division. The automatic stay stops lawsuits, foreclosures, and collections that day.
2. Debtor in possession: you keep running the business. No trustee takes over unless there’s a specific reason for the court to step in.
3. Plan and disclosure statement: how much creditors receive, over what period, and from what income or asset sales.
4. Creditor voting and confirmation: classes of creditors vote, and the court can confirm the plan over dissent if the legal standards for a “cramdown” are met.
5. Performance and discharge: complete the plan, and the restructured debts are resolved.
Chapter 11 vs. Chapter 7 for a business
The honest question: is the business worth more alive than dead? If operations are viable once debt is restructured, Chapter 11 (or Subchapter V) preserves the going-concern value, the jobs, and your equity.
If not, Chapter 7 winds it down in an orderly, final way. We’ll tell you which one applies once we’ve looked at your real numbers — including the honest answer being “neither, yet.”
FAQs
How much does Chapter 11 cost?+
Traditional Chapter 11 is the most expensive chapter — professional fees commonly reach six figures for complex cases. This is exactly why we screen every small business for Subchapter V first.
Does the business owner lose control in Chapter 11?+
Normally, no — you operate as debtor in possession throughout the case.
Can an individual file Chapter 11?+
Yes, and it’s the standard route once debts exceed Chapter 13’s limits. Read our individual Chapter 11 guide.
How long does Chapter 11 take?+
Traditional cases often run a year or more; Subchapter V cases are built to move in months, not years.
Where are Orlando-area cases filed?+
U.S. Bankruptcy Court, Middle District of Florida, Orlando Division — the only district we practice in.
Talk to an Orlando Chapter 11 attorney
Free consultation, straight answers, and an honest screen for whether Subchapter V saves you six figures.
🌐 Asistencia en Español: Se habla español · Falamos português. Visit: Bancarrota Capítulo 11 en Orlando.
By Juan C. Burgos, Esq. — Florida Bar No. 84056. This firm is a federally designated debt relief agency, assisting businesses and consumers seeking protection and reorganization under the United States Bankruptcy Code. Accessing or reviewing the materials on this website does not create an attorney-client relationship.
Gracias a su apoyo pude organizar mi situación financiera y atravesar este proceso con confianza y esperanza.
Lo recomiendo 100 % a cualquier persona que necesite un abogado de bancarrota responsable, comprometido y verdaderamente interesado en ayudar a sus clientes.
¡Mil gracias por todo, abogado Burgos!