- chapter 11
chap·ter 11 n: chapter 11 of the U.S. Bankruptcy Code see also bankruptcy code in the important laws section
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- Chapter 11
(USA) part of the Bankruptcy Reform Act of 1978 that allows an alternative to liquidation under Chapter7. The business is preserved as a going concern. There is usually no trustee, and the business may be conducted by a committee of creditors. The debtor is given 120 days to submit a plan for liquidation or reorganisation. For the UK process of administration, See administrator.
Collins dictionary of law. W. J. Stewart. 2001.
- Chapter 11
Under US bankruptcy law, a filing by a company in difficulties for protection from its creditors under Chapter 11 of the US Bankruptcy Code. Chapter 11 is the US equivalent of administration in the UK under which companies are protected from their creditors for a given period during which a rescue is attempted.+ Chapter 11USAThe chapter of the Bankruptcy Code under which a debtor seeks to reorganize its affairs through a confirmed (See confirmation) plan of reorganization. Although uncommon, a debtor can use Chapter 11 to liquidate its affairs.While in Chapter 11, the debtor generally continues to operate its business (unless the bankruptcy court appoints a trustee to operate the business). It is typically used by business entities, but in rare cases is used by individuals with complex financial affairs. Chapter 11 can be initiated voluntarily by the debtor or involuntarily by the debtor's creditors. The three forms of voluntary Chapter 11 cases are traditional (or "freefall"), prepackaged (or "prepack") and pre-arranged (or pre-negotiated).For more information on Chapter 11, see Practice Note, Bankruptcy: The Chapter 11 Process (www.practicallaw.com/4-380-9186).
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.