Is Chapter 11 an option for individuals?

[Mambo Queen]

What is the name of your state? Missouri

My husband has a LOT, and I mean A LOT, of unsecured debt. He ignored it for a while because with no assets and no job, he was judgment proof. Now he is working again and would like to avoid having his wages garnished, which most likely means filing bankruptcy. He would like to file a chapter 13 because most of his debt is non-dischargable student loan debt, but he may not actually fit under the 307,000 cap for unsecured debt under chapter 13. Also, I have a halfway decent income, so he may not qualify for chapter 7 anyway (although thankfully, NONE of the debts are mine and any assets we have are in my name only). My question is...if we add up all the debt and determine it does not fall under the ch. 13 cap, can he file chapter 11 as an individual? I have read that individuals can do this, but then some sites say only "wealthy individuals" can do this...if he was wealthy, we wouldn't be in this pickle. So if he doesn't fall under the ch. 13 cap, is he just screwed, or can he pay more and receive a ch. 11 bankruptcy? Thanks for any advice you can give me.

Second question has to do with wage and bank account garnishment. MO. allows for mandatory direct deposit. If my husband is forced to directly deposit his check, and his checking account is garnished, he'll lose the whole paycheck every pay period, even though there is a cap of 25% that can be garnished from his wages. Would it be legal for a creditor to do this, which would result in my husband's entire paycheck being garnished? Also, if more than one creditor files a wage garnishment, how is it determined how much each creditor can get, and the total can't exceed 25%, right? Thanks again.

[moburkes]

Originally Posted by Mambo Queen

What is the name of your state? Missouri

My husband has a LOT, and I mean A LOT, of unsecured debt. He ignored it for a while because with no assets and no job, he was judgment proof. Now he is working again and would like to avoid having his wages garnished, which most likely means filing bankruptcy. He would like to file a chapter 13 because most of his debt is non-dischargable student loan debt, but he may not actually fit under the 307,000 cap for unsecured debt under chapter 13. Also, I have a halfway decent income, so he may not qualify for chapter 7 anyway (although thankfully, NONE of the debts are mine and any assets we have are in my name only). My question is...if we add up all the debt and determine it does not fall under the ch. 13 cap, can he file chapter 11 as an individual? I have read that individuals can do this, but then some sites say only "wealthy individuals" can do this...if he was wealthy, we wouldn't be in this pickle. So if he doesn't fall under the ch. 13 cap, is he just screwed, or can he pay more and receive a ch. 11 bankruptcy? Thanks for any advice you can give me.

Wealthy people file bankruptcy. Being wealthy doesn't mean that you can always pay your bills.

From the US Courts website:
Chapter 11

Reorganization Under the Bankruptcy Code

The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)

[Mambo Queen]

Yeah, I know that even "wealthy" people sometimes need to file bankruptcy...I was just trying to say that we aren't wealthy, and some websites have said that chapter 11 is really only for companies or the wealthy. But it sounds like from what you've posted that my husband could be eligible to file chapter 11 if that is necessary. Thanks for your help.