Who can file for Chapter 11 Bankruptcy?
A Business filing for Chapter 11 Bankruptcy can be a corporation, partnership, limited partnership, limited liability company, or sole proprietorship. A bankruptcy case involving a sole proprietorship includes both the business and personal assets of the owners-debtors. Chapter 11 Bankruptcy is also available to individuals not engaged in business but is rarely used by them. Chapter 11 Bankruptcy is primarily utilized by businesses to reorganize their obligations and pay their debts over time. Businesses that choose to take advantage of Chapter 11 relief continue to operate their business while repaying their debts.
