Chapter 11

Chapter 11 of the United States Bankruptcy Code permits reorganization of businesses and individuals under the bankruptcy laws of the United States. A Chapter 11 bankruptcy can result in one of three outcomes for the debtor: reorganization, conversion to Chapter 7 bankruptcy, or dismissal. To reorganize, the debtor must file a plan of reorganization, which must be approved by the court and agreed to by the creditors, and meet certain requirements, including being feasible and proposed in good faith. In a successful reorganization, the debtor corporation is typically recapitalized with more equity and less debt, and some of its debts may be discharged.learn more on wikipedia