it's purpose is to save companies by giving them a fresh start and saving jobs and business by restructuring their debts.

It also allows banks to lend money taking a higher priority in being paid back.

All payroll & taxes are paid in full.

It take more work on the part of the business to do a chapter 11 then simply walking away paying no one anything.


It is also expensive in the legal fees.


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Many big name corps has used this law