Chapter 11 Business Bankruptcy or Individual Bankruptcy
Chapter 11 Bankruptcy is generally used to allow large businesses to obtain bankruptcy protection, although on occasion individuals may resort to Chapter 11. The primary advantage of seeking Chapter 11 protection is that often a business can continue to operate while it undergoes the Chapter 11 reorganization process. A debtor who continues to operate his or her business in this manner is referred to as a debtor in possession (DIP). Among the most important challenges facing a business as it plans to seek bankruptcy protection is arranging for the extension of DIP financing. Chapter 11 is among the most complicated sections of the Bankruptcy Code and the guidance of a competent attorney is essential to ensuring the best possible outcome of your bankruptcy filing.