Definition of Chapter 11 Bankruptcy

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Chapter 11 Bankruptcy Definition

Define Chapter 11 Bankruptcy (e.g., BK11 or Chapter 11): Chapter 11 is named after "chapter 11" of "title 11" of the US Code, generally known as the Bankruptcy Code. In general detail, Chapter 11 is similar to Chapter 13 but applies in situations when certain thresholds of money are exceeded.


Chapter 11 is frequently utilized by companies but in some rare cases may also be utilized by individuals. The premise of Chapter 11 is that in some cases a company or individual may be worth more, over the short term, if it is reorganized and rehabilitated rather than simply liquidated through a Chapter 7.


Financial Services and Debt Consolidation Definitions
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