Chapter 11 (United States)

Chapter 11 refers to a section of the U.S. Bankruptcy Code that allows businesses to reorganize their debts while continuing to operate. When a company is in financial trouble, it can file for Chapter 11 protection, which provides a legal framework for negotiating with creditors. The goal is to restructure the company's finances, make it viable again, and pay off debts over time. Throughout this process, the company often keeps control of its operations, but it must develop a plan approved by the court and creditors to repay its debts and emerge from bankruptcy successfully.