What Is the Purpose of Chapter 11 Bankruptcy?
The purpose of a Chapter 11 Bankruptcy is to get a repayment plan or plan of reorganization approved by the Bankruptcy Court and allow a Chapter Debtor to repay or restructure its Debt over time. Chapter 11 is typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership facing financial difficulty. Chapter 11 Bankruptcy’s primary purpose is for the Debtor is to reorganize their Debt through a Bankruptcy reorganization plan approved by the Bankruptcy Court.
