Types of Bankruptcy - Chapter 11
Chapter 11, also known as "Reorganization" is designed for business entities, but may be utilized by individuals.
In a Chapter 11 proceeding, the Debtor's assets are not liquidated. The Debtor reorganizes his/her/its debts and pays in whole or in part, through a statutory plan of reorganization. This Chapter is most commonly used by a company or corporation that desires to continue operating its business by repaying creditors through a court approved reorganization plan. Creditors are able to vote on the plan.
The Debtor goes to a "confirmation hearing", where the court either approves or disapproves the plan. The Debtor (also known as the Debtor in Possession) has control over the assets and operation of the business while in Chapter 11, unless a Trustee is appointed.