Chapter 11 Bankruptcy (U.S.)

Chapter 11 bankruptcy in the U.S. is a legal process that allows a financially distressed business or individual to reorganize their debts while continuing operations. It provides a structured way to negotiate with creditors, reduce or adjust debts, and develop a plan to return to financial stability. The goal is to give the debtor a fresh start without immediately liquidating assets. During Chapter 11, the business often operates under court supervision, and the process can take several months or years. It is primarily used by companies seeking to restructure rather than shut down entirely.