Chapter 11: Reorganization Bankruptcy

Chapter 11 bankruptcy is a legal process that allows businesses or individuals to reorganize their debts while continuing to operate. Instead of liquidating assets, they propose a plan to repay creditors over time. This can involve restructuring debts, selling off parts of the business, or renegotiating contracts. The goal is to return to profitability while treating creditors fairly. During this process, the court oversees the reorganization plan, ensuring all parties are treated justly. This option is often preferred for larger companies or those looking to maintain operations despite financial difficulties.