Chapter 11 bankruptcy

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Updated: Aug 20, 2021

A chapter of the US bankruptcy law by which a firm can apply to the courts for protection against all creditors while it is reorgaiuzed so as to enable it to pay its debts; the debtor usually proposes a plan of such reorganization. The argument for such a provision is that it gives better results for creditors as a whole than allowing firms to be forced into liquidation by any one creditor.

Reference: Oxford Press Dictonary of Economics, 5th edt.



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