Chapter 11 – Reorganization
E354493
Chapter 11 – Reorganization is a key section of U.S. bankruptcy law that allows businesses (and some individuals) to restructure their debts and operations under court supervision while continuing to operate.
All labels observed (1)
| Label | Occurrences |
|---|---|
| Chapter 11 – Reorganization canonical | 1 |
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
chapter of the United States Bankruptcy Code
ⓘ
reorganization bankruptcy procedure ⓘ |
| administeredBy |
United States bankruptcy courts
ⓘ
surface form:
United States Bankruptcy Courts
|
| allows |
equity interests to be cancelled or modified
ⓘ
modification of certain secured debts ⓘ rejection of burdensome leases ⓘ sale of assets free and clear of liens with court approval ⓘ |
| alsoKnownAs |
Chapter 11 bankruptcy
ⓘ
Chapter 11 reorganization ⓘ |
| appliesTo |
business entities
ⓘ
corporations ⓘ limited liability companies ⓘ partnerships ⓘ some individuals ⓘ |
| canBeUsedBy | high-debt individuals who exceed Chapter 13 limits ⓘ |
| codifiedIn | 11 U.S.C. §§ 1101–1174 and related provisions ⓘ |
| consequenceOfFailure |
possible conversion to Chapter 7 liquidation
ⓘ
possible dismissal of the case ⓘ |
| createsStatus | debtor in possession ⓘ |
| distinguishedFrom |
Chapter 13 wage earner plans
ⓘ
Chapter 7 liquidation ⓘ |
| feature |
ability to assume or reject executory contracts
ⓘ
ability to obtain debtor-in-possession financing ⓘ appointment of a creditors’ committee in many cases ⓘ automatic stay of most collection actions ⓘ disclosure statement requirement for the plan ⓘ possibility of cramdown over dissenting creditor classes ⓘ priority scheme for creditor claims ⓘ |
| governedBy | Federal Rules of Bankruptcy Procedure ⓘ |
| includesVariant | Subchapter V for small business debtors ⓘ |
| jurisdiction | United States federal law ⓘ |
| legalEffect | discharge of certain debts upon plan confirmation and completion ⓘ |
| objective |
facilitate rehabilitation of financially distressed but viable entities
ⓘ
provide orderly process for creditor recovery ⓘ |
| partOf | Title 11 of the United States Code ⓘ |
| permits |
debtor to continue operating business during bankruptcy
ⓘ
debtor-in-possession control of assets ⓘ |
| primaryPurpose |
maximization of value for creditors and the debtor
ⓘ
reorganization of debts ⓘ restructuring of business operations ⓘ |
| requires |
court approval of the reorganization plan
ⓘ
creditor voting on the plan in most cases ⓘ filing of a bankruptcy petition ⓘ submission of a reorganization plan ⓘ |
| subjectTo |
oversight by a bankruptcy judge
ⓘ
oversight by the United States Trustee ⓘ |
| timeframe | often lasts several months to several years ⓘ |
| typicalDebtors |
large corporations
ⓘ
small and medium-sized businesses ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.