The United States Bankruptcy Code is long and complicated. It provides different requirements for businesses and individuals who are seeking bankruptcy protection. The Code is divided into chapters and people often refer to the chapter number pursuant to which they qualify to file for bankruptcy.
Who Can File for Chapter 11?
Chapter 11 Bankruptcy is usually used by businesses that are unable to pay their creditors, although some individuals may also be eligible to file for bankruptcy pursuant to Chapter 11. The business itself can initiate a voluntary Chapter 11 petition or its creditors can file for an involuntary petition under Chapter 11 in certain circumstances.