Chapter 11 Bankruptcy

Chapter 11 is mainly for businesses that wish to reorganize but it is also available to individuals.  The philosophy behind Chapter 11 is that sometimes it is better to allow a financially troubled business to try to reorganize its debt and continue to operate rather than liquidating everything. The franchise chain 7-Eleven is a good case in point – the company came out of a Chapter 11 bankruptcy in 1991, and today is the top franchise in the country.