Chapter 11 (US Bankruptcy Code)

Chapter 11 of the U.S. Bankruptcy Code is a legal process that allows businesses or individuals to reorganize their debts while continuing operations. It provides a structured way to negotiate terms with creditors, reduce debt, and develop a feasible plan to repay obligations over time. The goal is to give troubled entities a chance to recover financially instead of shutting down. During Chapter 11, a bankruptcy court oversees the process, ensuring fairness and compliance, ultimately aiming to restore the debtor’s financial health while addressing creditor claims.