Word: Chapter 11
Definition:
A reorganization bankruptcy, 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. Individuals or people in business can also seek relief in Chapter 11.
Sample Sentence:
The retail chain filed for Chapter 11 to restructure its debt and continue operations.
Why It Matters:
Chapter 11 allows struggling businesses to stay afloat while negotiating with creditors.
Quick Tip:
Remember: Chapter 11 is commonly used by businesses, not individuals.
Source: https://www.uscourts.gov/glossary
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