Chapter 11 Bankruptcy: Business Reorganization

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.)

A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a “reorganization” bankruptcy.

The following provides additional detail about Chapter 11: