Chapter 11 bankruptcy is a form of bankruptcy reorganization available to individuals, corporations and partnerships.. It has no limits on the amount of debt, as Chapter 13 does.. It is the usual choice for large businesses seeking to restructure their debt. Individuals usually file Chapter 7 or Chapter 13 rather than Chapter 11, which are simpler and less expensive. Jun 01, · Filing for bankruptcy is not necessarily a death sentence for struggling companies. It can be a lifeline, providing the opportunity to manage debt and restructure the business’ operations. There are two types of corporate bankruptcy filings, Chapter 7 and Chapter In Chapter 7, a company must halt operations, and goes out of business for good. Chapter 11 bankruptcy is a form of corporate financial reorganization which typically allows companies to continue to function while they follow debt repayment plans. The theory here is that otherwise viable businesses that are allowed to continue to operate will generate revenue, protect jobs, and be able to pay off creditors over time.
Corporate Finance. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Bankruptcy Basics. Types of Bankruptcy. Personal Bankruptcy. Corporate Bankruptcy. Bankruptcy: Your Legal Rights. Bankrupty Terms C-I. Bankrupty Terms J-Z. Table of Contents Expand. What Is Chapter 11? How Chapter 11 Works. An Example of Chapter Special Considerations.
Key Takeaways If a company filing for Chapter 11 opts to propose a reorganization plan, it must be in the best interest of the creditors. If the debtor does not suggest a program, the creditors may propose one instead. The trend of retail companies filing for Chapter 11 has continued into the early part of On Jan.
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What Is Reorganization? A reorganization is an overhaul of a troubled company's management and business operations with the aim of restoring it to profitability.
Cramdown A cramdown is the imposition of a bankruptcy reorganization plan by a court despite any objections by certain classes of creditors.
What Is a Creditors' Committee? A creditors' committee is a group of people who represent a company's creditors in a bankruptcy proceeding. Should You File For Bankruptcy? Impact of Filing Bankruptcy. Business Issues in Bankruptcy. Your Home and Bankruptcy. Life After Bankruptcy. You're Named in Bankruptcy. All rights reserved. Moran Law Group is a debt relief agency according to the U. Bankruptcy Code. We help people file for Bankruptcy. Bankruptcy In Brief Bankruptcy information you can use.
Chapter 11 Bankruptcy Explained. Need Help in Southern California? Consumer Help Central. She is known for energetic representation of clients and her command of bankruptcy law.