Chapter 11 (U.S.)

Chapter 11 of the U.S. Bankruptcy Code is a legal process that allows businesses or individuals facing financial distress to reorganize their debts while continuing operations. It provides a structured framework to negotiate with creditors, reduce or restructure obligations, and develop a plan to return to financial stability. The process involves filing a petition in bankruptcy court, which then oversees the reorganization plan. While the debtor maintains control of assets during this time, major decisions often require court approval. Chapter 11 aims to maximize the value of the business or individual’s estate and facilitate a fresh start.