Who is responsible for the chapter 11 bankruptcy allowance determination? 5 Answers as of June 17, 2011For Chapter 11 bankruptcy, who determines how much is deducted from my total income to pay the creditors and how much is allowed for my necessary expenses, such as food, mortgage, utilities, prescriptions, transportation, etc. - the bankruptcy court, or my bankruptcy lawyer?
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Chapter 11 is the most complicated type of bankruptcy. Most individuals would file a chapter 13 if a payment plan is the goal. The debtor determines how the expenses are allotted in a budget called Schedule I and J. There also is a requirement of what is called a "means test" which will determine the minimum payments to creditors. You should consult with a bankruptcy specialist to see if you qualify for chapter 11 or chapter 13 or chapter 7.
Answer Applies to: California