Chapter 11

or Chapter Eleven, Chapter XI

noun

, U.S. Law.

1. a section of the Bankruptcy Code that provides for the reorganization of an insolvent corporation under court supervision and can establish a schedule for the payment of debts and, in some cases, a new corporation that can continue to do business.

chapter 11

noun

1. the statute regarding the reorganization of a failing business empowering a court to allow the debtors to remain in control of the business to attempt to save it

   they are in chapter 11

Word History and Origins

Origin of Chapter 11¹

C20: from chapter 11 of the Bankruptcy Reform Act (1978)

Example Sentences

There were 5,236 Chapter 11 filings in 2019, but 6,917 last year, a tally at least 30 percent higher than any of the previous four years.

From Washington Post

Just this week, coworking space Knotel filed for Chapter 11 bankruptcy.

From Quartz

Le Tote, a clothing rental start-up, that bought Lord & Taylor last year for about $100 million, also filed for Chapter 11 bankruptcy on Sunday.

From Washington Post

Sephora and Kohl’s, which started talking about the potential partnership around the time Penney filed for Chapter 11 bankruptcy in the spring, will start with 200 locations next year, and build up to 850 by 2023.

From Fortune

After store redesigns and other changes failed to draw customers, the Fort-Worth, Texas, company filed for Chapter 11 bankruptcy protection in 2015 and then again two years later.

From Fortune