Bankruptcy
Chapter 11 Bankruptcy
Chapter 11 is reorganization bankruptcy, where a business keeps operating while it negotiates a plan to restructure its debts.
The company usually stays in control as a debtor in possession, running day-to-day operations while major decisions require court approval. Creditors organize into committees, and the automatic stay holds collection efforts off during the process.
The goal is a confirmed plan describing what each class of creditors receives. Cases that cannot get there often convert to Chapter 7 liquidation or end with a sale of substantially all assets.
Subchapter V has changed small business practice. It streamlines Chapter 11 for smaller debtors with faster deadlines, no creditors committee by default, and a simpler path to confirming a plan, and its cases look noticeably leaner on the docket. Very large cases concentrate in a few districts because of where companies are incorporated or headquartered, which is why so many well-known reorganizations appear on the dockets of a handful of bankruptcy courts.
How it appears on a docket
VOLUNTARY PETITION under Chapter 11 filed. Motion for interim use of cash collateral GRANTED. First day hearing held 2/20/2026.
Governing rule
11 U.S.C. ch. 11
Related terms
- Automatic Stay — The automatic stay is the injunction that takes effect the moment a bankruptcy petition is filed, stopping most collection activity against the debtor.
- Proof of Claim — A proof of claim is the form a creditor files in a bankruptcy case stating how much the debtor owes and why.
More on bankruptcy
See this term in a real case
Search federal court records and read the filings where chapter 11 bankruptcy actually shows up. New to federal dockets? Start with how to find a federal case.