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| Resources for Entrepreneurs | Entrepreneur's Glossary | ||||
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Chapter 11
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Definition of Chapter 11Chapter 11 is the part of the Bankruptcy Code that provides for reorganization of a bankrupt company's assets.
Chapter 7 is an altogether different process, which concludes with the liquidation of all company assets. In contrast, the goal of Chapter 11 is to put creditors on hold for a period of time while the firm reorganizes to survive as a going concern. In Chapter 11, a reorganization plan is developed and must be agreed upon by key parties, such as lenders, shareholders and the appointed bankruptcy trustee. In some Chapter 11 proceedings, creditors will take less money than they are owed or convert their debt instruments into equity holdings. If you are an ambitious entrepreneur or an aspiring executive looking to get involved with a startup, please take the time to learn more about Gaebler Ventures.
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