Chapter 11 bankruptcy

Cultural  

1. A provision of the U.S. bankruptcy law which enables a failing firm to apply to the courts for protection against all creditors while it is reorganized to pay its debts. This provision enables a firm to avoid being closed down by any single creditor and gives investors a chance to decide whether the firm can again be made profitable. At the same time, it gives dishonest management the opportunity to loot the firm's assets while the case is before the courts.

---

Example Sentences

Chapter 11 bankruptcy filings in the U.S. were up 42% in April from a year prior, and Subchapter V small-business filings rose 46%.

From MarketWatch • May 21, 2026

Wolfspeed exited Chapter 11 bankruptcy in September, and shares have surged since the financial restructuring.

From Barron's • May 13, 2026

Villa Chardonnay filed for Chapter 11 bankruptcy in October 2025 after the property in Julian went into foreclosure stemming from a $1.6-million unpaid loan, according to court records.

From Los Angeles Times • May 9, 2026

The company filed for Chapter 11 bankruptcy in November 2024.

From The Wall Street Journal • Apr. 26, 2026

Spirit Aviation Holdings shares soared 150% to $1.50 on Wednesday, following its second Chapter 11 bankruptcy filing last August.

From Barron's • Apr. 22, 2026