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What happens in Chapter 11 bankruptcy?

Chapter 11 - Bankruptcy Basics. This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.

How to file Chapter 11 bankruptcy?

How Chapter 11 bankruptcies are filed? A business that is unable to keep current with its debt may petition to file Chapter 11 bankruptcy through the U.S. District Court's bankruptcy division with jurisdiction. The court clerk's office handles bankruptcy filings, including logging all necessary financial documents and scheduling.

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