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Module three chapter 11 provides an overview of Chapter 11 bankruptcy, emphasizing that not all bankruptcies aim to eliminate debt. Instead, bankruptcy courts can facilitate the reorganization of a company's debt, allowing it to continue operations. This process, known as reorganization, is available under Chapters 11 and 13 of the Bankruptcy Code, permitting businesses and individuals to restructure debts by negotiating with creditors. The reorganization plan is developed by the debtor and overseen by a bankruptcy trustee or court. Although debtors manage their businesses or finances, they often require expert assistance. While Chapter 7 filings are more common, Chapter 11 filings have risen significantly, increasing over 60% from 2017 to 2018.
