Chapter 11 of the Federal Bankruptcy Code is different from Chapter 7, in that rather than the liquidation of the debtor's assets as provided for under Chapter 7, Chapter 11 can be used under certain qualifying circumstances for reorganization. This is a process by which the debtor, usually a Corporation or a Partnership, seeks to reorganize the various debts and payment arrangements to creditors into a plan that is both manageable to the debtor, acceptable by the Bankruptcy Court and which will be approved by the Creditors. Chapter 11 can be used to keep a business alive and ongoing, while reorganizing the debts and payment plans to be manageable to the debtor. Chapter 11 can also sometimes be used by individuals. It should be noted that liquidation may sometimes also be necessary or required.
.
|
