chapter 11

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Definition of chapter 11 in English English dictionary: a part of the US bankruptcy laws that allows a company with financial problems to reorganize itself so that it will not be forced to close down; The part of the Bankruptcy Code that provides for reorganization of a bankrupt company's assets; Provides for reorganizing a bankrupt business, whether the bankruptcy petition is filed voluntarily or involuntarily; section of U S company law that makes it possible for a company to go to the courts and say, hey, I'm out of money at the moment and I can't pay my immediate debts, so my creditors want to close me down, but if you let me, I'll work things out and pay them, I promise If the court is persuaded by the company's arguments, it will rule that it is protected from its creditors (those it owes money to) for a period that will allow it to do what it promises; A section of the Federal Bankruptcy Code dealing with business reorganizations A separate section, referred to as Chapter 7, deals with business liquidations; The portion of the Bankruptcy Reform Act of 1978 that outlines the procedures for reorganizing a failed (or failing) firm, whether its petition is filed voluntarily or involuntarily (Chapter 17); A Federal Bankruptcy Act where a debtor can maintain control of its business and operations, under court supervision, as long as current debts remain paid; A debtor (business, individual, or partnership) is declared bankrupt, but is allowed reorganization to attempt debt repayment Creditor approval is required A separate taxable entity is created; 1 Under Chapter 11, a debtor is permitted to postpone all payments on debts so that he or she can reorganize the business While other bankruptcy proceedings seek to have the debtor's assets sold and to have all the creditors paid to the extent possible, Chapter 11 seeks to give the debtor a breathing spell with the hope that the business will recover and all creditors will be fully repaid The goal is a plan that specifies how much the creditors will be paid, in what form they will be paid, and other details; A court approved reorganization of an entity The debtor continues to operate the business and allows for negotiation in restructuring and repayment of outstanding debts; A bankruptcy in which the borrower's debts are reorganized This type of bankruptcy is seldom used by student borrowers and is most often used by financially troubled businesses; A reorganization proceeding in which the debtor may continue in business or in possession of its property as a fiduciary A confirmed Chapter 11 plan provides for the manner in which the claims of creditors will be paid in whole or in part by the debtor; A business debtor petitions for reorganization The debtor generally is permitted to continue operations under court supervision until an initial plan of reorganization is approved by the court If a plan is not approved, the case is either converted to a Chapter 7 or dismissed; A reorganization bankruptcy, usually involving a corporation or partnership (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time People in business or individuals can also seek relief in chapter 11 ); The Chapter in the Bankruptcy Code in which a debtor seeks to rehabilitate and reorganize its financial status In a Chapter 11, the debtor proposes a plan, which is then voted on by the creditors; The chapter in the U S Bankruptcy Code that contains the provisions for Court-supervised reorganization of debtor companies; Refers to the Chapter 11 of US Bankruptcy Code which provides for certain protection to distressed companies, such as stay against suits or action against properties etc Similar provisions exist in many other countries; Understanding Labor-Management Relations; That portion of the Federal Bankruptcy code that deals with business reorganizations Chapter 7 is that part of the Federal Bankruptcy code that deals with business liquidations; The chapter of the U S Bankruptcy Code that contains the provisions relating to a court-supervised reorganization of a company; The part of the U S Bankruptcy Code that contains the provisions for Court-supervised reorganization of debtor companies The debtor maintains control of the business in a Chapter 11 proceeding; This chapter is a reorganization chapter where a debtor seeks to rehabilitate and reorganize its financial structure This plan is normally used by businesses but can be filed by an individual debtor