Chapter 11 usually makes big news when large companies fall into financial difficulty.
It is a form of bankruptcy that involves the restructuring of the debtor company’s business affairs.
In a nutshell, Chapter 11 offers the debtor a fresh start.
It begins with the filing of a petition in the bankruptcy court.
Typically, this version of bankruptcy is voluntary. In such a scenario, the debtor takes the lead and seeks bankruptcy relief.
It is also possible that creditors or lenders may group together to file an involuntary petition against the defaulting company.
Here is how Chapter 11 operates
The court will help the... Continue reading