What common reasons do businesses or individuals file Chapter 11 Bankruptcy?
Most often Chapter 11 Bankruptcy is utilized by a business or individual with excessive debt to reorganize their financial affairs. Additionally, debtors file for Chapter 11 to reject certain leases or to stop or stay lawsuits, turnover actions, judgments, collection activities, foreclosures, and repossessions of property. When a debtor files Chapter 11 Bankruptcy all such actions against the debtor are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition with some exceptions.
