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Chapter 11

Chapter 11 refers to Chapter 11 of Title 11 of the United States Code (the Bankruptcy Title).  A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy.  While an individual may file under Chapter 11, the provisions of chapter 11 are generally used to reorganize a business.  Chapter 11 allows the debtor to continue its business operations by means of a plan of reorganization, which must meet certain statutory criteria.  The debtor is given a chance to restructure its finances so that it may continue to operate, provide its employees with jobs, pay its creditors, and produce a return for its stockholders. For more detailed information click here.