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What is Chapter 11 Bankruptcy?

Chapter 11 Bankruptcy is similar to Chapter 13 reorganization, only Chapter 11 is exclusively used for businesses. Chapter 11 allows a business to continue to stay in business by getting creditors to halt their collection activities. The business, in exchange, must provide a plan of reorganization to settle the debts; and although these debts will probably not be repaid entirely, it’s better for the creditor in that they get something, and better for the business because it is able to continue on.