In short
Chapter 11 bankruptcy lets a business, or an individual, keep operating while it restructures its debts under a plan of reorganization approved by creditors and confirmed by the court.
Key takeaways
- The debtor usually stays in control of its business as debtor in possession.
- Creditors vote on the plan by class; the court can confirm it over some objections.
- Confirmation generally discharges debts except as the plan provides.
Where it's tested
REG: Debtor-Creditor & Bankruptcy — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In a Chapter 11 reorganization, who ordinarily continues to operate the business after filing?