Chapter 11 is a section of the U.S. Bankruptcy Code that allows a business (and sometimes an individual) to seek court protection to reorganize its debts and operations rather than liquidate.
Key idea: In Chapter 11, the debtor typically keeps operating as a “debtor in possession” while it negotiates and gets court approval for a reorganization plan to repay creditors over time, restructure obligations, or sell parts of the business.
