Chapter 11

Or Chapter Eleven,

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

The budget airline initially filed for reorganization bankruptcy, seeking Chapter 11 protection in November 2024.

From Los Angeles Times

Hooters, the iconic casual dining chain long associated with skimpy uniforms and “breastaurant” branding, filed for Chapter 11 bankruptcy in March and closed multiple locations.

From Salon

In July, LMD Holdings filed for Chapter 11 bankruptcy - just one month after opening the Luca Mariano Distillery in Danville, Kentucky.

From BBC

Claire’s, the shopping mall chain that sells flashy accessories to teens and tweens, filed for Chapter 11 bankruptcy protection on Wednesday amid shrinking margins and pressure from online competitors.

From Los Angeles Times

His business career is a monument to spectacular failure: six Chapter 11 bankruptcies and more than a dozen other disastrous business failures.

From Slate