Chapter 11 Bankruptcy Information 

 

Chapter 11 Bankruptcy is a provision of US law that allows firms to declare a temporary bankruptcy and give themselves time from their creditors. In this period, the hope is that the firm will turn the company around and be able to pay more back.

The Problem with chapter 11 bankruptcy is that badly managed firms may use chapter 11 bankruptcy to further deplete their assets leaving even less for their creditors.

 

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