Chapter 11
Chapter
11 Bankruptcy is a reorganization chapter that anyone who is eligible
to file bankruptcy under chapter 7, may also opt to file a chapter 11
instead.
Chapter 11 reorganization plans do not have to be completed in a
specific amount of time. What is required of a chapter 11 plan is
that it is approved by the committee of unsecured creditors. Once
this happens, the bankruptcy court will confirm the plan. The
bankruptcy is discharged and the case is considered closed at this
point. However it is essential that the debtor of the chapter 11
bankruptcy follow the plan.
A standing trustee is ordinarily not appointed in a Chapter 11
bankruptcy, unless fraud is suspected.