Chapter 11 Bankruptcy

Chapter 11 bankruptcy is most commonly utilized by business entities such as corporations or partnerships to reorganize rather than liquidate under Chapter 7. A Chapter 11 may be an option for an individual if she has too much debt to file a Chapter 13. There are simpler procedures mandated for purposes of a small business being reorganized under Chapter 11. The biggest advantage to filing a Chapter 11 is that the business can continue to operate during the plan.