Named after the U.S. bankruptcy code 11, corporations generally file Chapter 11 if they require time to restructure their debts. 3 This version of bankruptcy gives the debtor a fresh start. However, the terms are subject to the debtor's fulfillment of its obligations under the plan of reorganization.What are the conditions for a Chapter 11 bankruptcy?
In filing a Chapter 11, the debtor presents a plan to creditors which, if accepted by the creditors and approved by the Court, will allow the debtor to reorganize personal, financial or business affairs and again become a financially productive individual or business. Credit Counseling must be obtained prior to filing Bankruptcy.