What is a Chapter Eleven?
A case filed under Chapter 11 reorganization of the United States Bankruptcy Code is frequently referred to as a “reorganization” bankruptcy. While individuals are not precluded from using Chapter 11, it is more typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership. Although the appointment of a case trustee is a rarity in a chapter 11 case, a party in interest or the United States trustee can request the appointment of a case trustee or examiner at any time prior to confirmation in a chapter 11 case. In a chapter 11 case, a liquidating plan is permissible. Such a plan often allows the debtor in possession to liquidate the business under more economically advantageous circumstances than a chapter 7 liquidation. Confirmation of a plan discharges the debtor from any debt that arose before the date of confirmation. After the plan is confirmed, the debtor is required to make plan payments and is bound by the provisions of the plan or re-or
