Chapter 11 (U.S. bankruptcy)

Chapter 11 of U.S. bankruptcy law allows businesses or individuals to reorganize their debts while continuing operations. It provides a legal framework to renegotiate contracts, reduce liabilities, and develop a plan to pay creditors over time. The goal is to give the debtor a fresh start without immediate liquidation of assets, preserving the business or income-producing activities. A court oversees the process, ensuring fairness for all parties involved. Chapter 11 is often used by large companies facing financial difficulties, but individuals with extensive debt can also file under this chapter.