Chapter 11 (U.S. Bankruptcy Code)

Chapter 11 of the U.S. Bankruptcy Code allows a business or individual to reorganize their debts while continuing operations. It provides a legal process to negotiate with creditors, reduce debts, and develop a plan to pay back what is owed over time. The goal is to give the debtor a fresh start while maintaining business functions, protecting assets, and creating a feasible repayment plan approved by the court. Essentially, it’s a legal way for financially troubled entities to restructure their obligations and regain stability, rather than outright liquidation or shutdown.