Chapter 11

    Chapter 11 bankruptcies are often referred to as 'business reorganizations'. A reorganization attempts to save the business while providing 'breathing room' from creditor pressures. While the possibilities for a business in Chapter 11 Bankruptcy are numerous, most employ the notion of removing the less productive areas of the business to allow the stronger areas the be saved; in essence a 'trimming of the fat' principle. In most Chapter 11's in North Carolina, the Bankruptcy Court allows management to remain in that capacity, since they are in the best position to guide the business to a plan designed to restructure the secured debt and compromise unsecured debt. In other types of Chapter 11's, the failing business is afforded the opportunity to close the business in an orderly fashion in hopes of negotiating outing potentially devastating personal liabilities.

**11 U.S.C. 528(a)(4) NOTICE. We are a debt relief agency. We help people file for bankruptcy relief under the federal Bankruptcy Code. **