Chapter 11 Bankruptcy Protection
Chapter 11 bankruptcy protection is a form of bankruptcy protection that is available to businesses, corporations, and other entities. It is a form of reorganization that allows the debtor to restructure their debts and liabilities in order to remain in business. The debtor is allowed to continue to operate their business while they are in Chapter 11 bankruptcy protection, and they are given the opportunity to negotiate with creditors to reduce their debt and liabilities. The goal of Chapter 11 bankruptcy protection is to allow the debtor to remain in business and to eventually pay off their debts.
History of Chapter 11 Bankruptcy Protection
Chapter 11 bankruptcy protection was first introduced in the United States in 1978 as part of the Bankruptcy Reform Act of 1978. The purpose of the act was to provide businesses with a way to reorganize their debts and liabilities in order to remain in business. Since then, Chapter 11 bankruptcy protection has been used by many businesses to reorganize their debts and liabilities and to remain in business. It has also been used by individuals to reorganize their debts and liabilities, although this is less common.
Comparison of Chapter 11 Bankruptcy Protection and Other Forms of Bankruptcy Protection
| Type of Bankruptcy Protection | Debtor Can Remain in Business? | Debtor Can Negotiate with Creditors? |
|---|---|---|
| Chapter 7 | No | No |
| Chapter 11 | Yes | Yes |
| Chapter 13 | No | Yes |
Summary
Chapter 11 bankruptcy protection is a form of bankruptcy protection that is available to businesses, corporations, and other entities. It is a form of reorganization that allows the debtor to restructure their debts and liabilities in order to remain in business. The debtor is allowed to continue to operate their business while they are in Chapter 11 bankruptcy protection, and they are given the opportunity to negotiate with creditors to reduce their debt and liabilities. For more information about Chapter 11 bankruptcy protection, please visit the websites of the United States Bankruptcy Court, the Internal Revenue Service, and the American Bankruptcy Institute.
See Also
- Chapter 7 Bankruptcy Protection
- Chapter 13 Bankruptcy Protection
- Debtor-in-Possession Financing
- Automatic Stay
- Cramdown
- Reorganization Plan
- Liquidation
- Bankruptcy Discharge
- Bankruptcy Trustee
- Bankruptcy Exemptions
