Chapter 11 bankruptcy is the most complex and time-consuming bankruptcy proceeding and is typically available to corporations, partnerships or individuals whose debts exceed the limits under Chapter 13.
A Chapter 11 case is another type of reorganization proceeding, similar to a Chapter 13 case. Chapter 11 bankruptcies constitute less than 1% of all bankruptcies filed, but account for as much as 90% of the time expended by the bankruptcy court in each jurisdiction. This fact illustrates the complexity of the Chapter 11 case. The intent of a Chapter 11 debtor is to successfully reorganize its affairs so that it may repay debt, retain assets and remain in business. These goals are accomplished by filing a proposed plan of reorganization and obtaining its confirmation, much like the Chapter 13 proceeding. Despite its complexities, Chapter 11 is designed to work for small debtors as well as large debtors.
Most Chapter 11 debtors are known as debtors-in-possession and are authorized to conduct ordinary business affairs without court approval.

Therefore, a business in serious financial condition may continue to operate without danger of immediate closure by any of its creditors. This breathing spell theoretically provides the debtor with an opportunity to attempt to reorganize its financial affairs. The practical effect of the Chapter 11 debtor-in-possession rules is to make the debtor an involuntary partner with its creditors. Cooperation, disclosure and compliance by all parties involved increases the chance for a successful reorganization of the debts in a Chapter 11 proceeding.


If you would like to discuss options available to you under Chapter 11 of the United States Bankruptcy Code, please contact:

Attorney John Hyams at
717-766-5300 (West Shore)
or 717-533-0700 (East Shore)
or email us at