Chapter 11 Bankruptcy

The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership or an individual which has debt that exceeds the Chapter 13 threshold. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.) A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy.

Chapter 11 provides a court supervised opportunity to reorganize your business affairs including repayment of secured and unsecured creditors over a three to five year period at the actual current market rate of interest. It also provides for a forced acceptance on secured and unsecured creditors'repayment plans.