Chapter 11 of the Bankruptcy Code provides for reorganization, usually involving a corporation or partnership. A person filing under chapter 11 usually will propose a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11. Cases that are filed under chapter 11 of the Bankruptcy Code are often referred to as a "reorganization" bankruptcy.

The chapter 11 petition is voluntary will require information including:

• The debtor's name(s)
• Social security number or tax identification number
• Residence address
• Location of principal assets (if a business)
• The debtor's plan or intention to file a plan
• Request for relief under the appropriate chapter of the Bankruptcy Code.

Chapter 11 bankruptcy was designed to let you create a plan for repaying your debts while the court can provide protections for you while you focus on repaying those debts.

In a chapter 11 case, a plan to liquidate is allowed. Such a plan often allows the debtor to liquidate the business under better circumstances than a chapter 7 liquidation. It also allows the creditors to take a more active role in handling the liquidation of the assets and the distribution of the proceeds than in a chapter 7 case.

Businesses that can File for Chapter 11 Bankruptcy

Any business entity can file for Chapter 11 bankruptcy in accordance to United States Bankruptcy Code.

Some of the entities that can reorganize and restructure under Chapter 11 bankruptcy include:

• Partnerships
• Limited Liability Partnerships
• Limited Liability Corporations
• Sole Proprietorships
• Corporations
• Co-operatives and Non-Profits

Additional information about Bankruptcy

• The Process of Bankruptcy
• Bankruptcy Filing Fees in South Carolina
• Bankruptcy Discharge
• Chapter 7 - Under the Bankruptcy Code
• Chapter 13 - Individual Debt Adjustment
• Chapter 11 - Reorganization Under the Bankruptcy Code
• Chapter 9. Municipality Bankruptcy
• Chapter 15. Ancillary and Other Cross-Border Cases
• SCRA. Servicemembers' Civil Relief Act
• SIPA. Securities Investor Protection Act
• Glossary - Terms You Need to Know
• Approved Credit Counseling Agencies

The information presented in our pages on bankruptcy should not be cited or relied upon as legal authority and should not substitute for the advice of a competent bankruptcy attorney.