CHAPTER 11 REORGANIZATION
Under Title 11, Chapter11 a business entity, an individual or spouses filing a "joint petition" can seek bankruptcy protection under a Chapter 11 reorganization. Chapter 11 is used by a business entity that is unable to continue business operations due to creditor's demands for timely repayment of debts or other external factors such as unmanageable pending litigation against the business arising from events or circumstances not within the control of the business.
Individuals or spouses filing a "joint petition" can utilize Chapter 11 when their assets or liabilities exceed the statutory limitations of a Chapter 13 proceeding.
In Chapter 11 the business debtor initially remains in control of its operations, or in the case of an individual or spouses filing jointly Chapter 11, their assets and liabilities. The debtors are referred to as "Debtors in Possession" and are subject to the jurisdiction of the Bankruptcy Court and U.S. Trustee. In order for a Chapter 11 debtor to successfully reorganize, there must be filed by the debtor a plan of reorganization. The plan must be confirmed by the Bankruptcy Court. After the creditors agree with the terms of the plan, the plan is approved and it becomes binding on all parties in the case.
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