What is a discharge under the Chapter 11 (reorganization) of the Bankruptcy Code?
Chapter 11 of the Bankruptcy Code is known as reorganization and provides an opportunity for the business debtor to reorganize its business of financial affairs or to orderly liquidate its property. The provisions generally enable a debtor to continue the business and to reorganize, than to liquidate a troubled business. Continued operation of the business would save the jobs of employees, tax base of communities and reduce the upheaval from termination of the business. This chapter also gives considerable control over plan negotiations.
