What is the goal of Chapter 11?
The main goal of a chapter 11 case is for a plan of reorganization regarding the debtor to be approved by its creditors. The Bankruptcy Code gives the debtor the exclusive right to file a plan for the first 120 days of the case (which can be extended not more than 20 months from the date the case was filed). A creditors committee, or even individual creditors, can file a plan of reorganization once the debtor’s exclusive filing period has lapsed (or been lifted by the Court). Debtors in chapter 11 must be represented by attorneys. Creditors committees typically also hire attorneys.
