Chapter 11 (of the U.S. Bankruptcy Code)

Chapter 11 of the U.S. Bankruptcy Code allows businesses or individuals to reorganize their debts while continuing operations. It provides a legal framework to develop a plan to repay creditors over time, often reducing debt or renegotiating contracts. The goal is to give the debtor a financial fresh start while protecting the interests of creditors. During Chapter 11, the debtor remains in control of day-to-day operations unless a court assigns a trustee. This process can help a struggling business survive and return to profitability, rather than shutting down completely.