Chapter 11 Bankruptcy

[Download step-by-step guidance and analysis on Chapter 11 bankruptcy proceedings.]

Bankruptcy is a legal proceeding for individuals and entities in some form of financial distress, typically those who are unable to pay their debts to creditors. In the United States, bankruptcy is only available through the federal courts, and the law governing bankruptcy is the United States Bankruptcy Code.

Ordinarily, once a bankruptcy case is filed, an automatic stay is immediately put in place to shield the debtor from collection actions while the bankruptcy case proceeds. The form of relief available to the debtor depends on which chapter of the Bankruptcy Code the debtor proceeds under. Chapter 11 bankruptcy, in particular, refers to Chapter 11 of the United States Bankruptcy Code, and it typically involves a restructuring of debts.

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