Chapter 11

Many US companies in a turnaround situation consider using Chapter 11 protection for their reorganization efforts. The 11 United States Code (11 USC) is part of the 1978 Bankruptcy Code, which replaced the Bankruptcy Act of 1898. The 11 USC consists of several chapters, but the chapters directly relevant to this work are Chapter 7, which regulates the proceedings in case of liquidation, and Chapter 11, which regulates reorganizations.