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Module 3, Chapter 11 provides an overview of Chapter 11 bankruptcy, emphasizing that it is not solely for eliminating debt but can also facilitate restructuring a company's debt. This process, known as reorganization or rehabilitation, allows companies to continue operating. Both Chapters 11 and 13 of the Bankruptcy Code enable businesses and individuals to compromise with creditors through a negotiated plan overseen by a bankruptcy trustee or court. Although debtors are responsible for managing their operations or finances, they often require a team of experts and attorneys for assistance. Despite the prevalence of Chapter 7 filings, Chapter 11 filings have surged, increasing over 60% from 2017 to 2018.
