Chapter 11

American  

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.

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chapter 11 British  

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

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Etymology

Origin of chapter 11

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

Example Sentences

The iPic dine-in movie theater chain has filed for Chapter 11 bankruptcy protection and intends to pursue a sale of its assets, citing the difficult post-pandemic theatrical market.

From Los Angeles Times • Mar. 4, 2026

Its parent, Luminar Technologies, struck an agreement to sell the business to Quantum Computing after filing for Chapter 11 bankruptcy in December.

From Barron's • Mar. 2, 2026

Spirit would emerge from Chapter 11 in late spring or early summer “as a strong low-cost, value-driven carrier offering guests basic and premium products at the lowest fares in the sky,” the company said.

From MarketWatch • Feb. 24, 2026

Orlando, Fla.-based Red Lobster filed for Chapter 11 bankruptcy protection in May 2024 after years of declining traffic and an overly generous all-you-can-eat shrimp deal that piled up steep losses.

From The Wall Street Journal • Feb. 10, 2026

In Part II, Chapter 11, "a line of sustantial agreement" was changed to "a line of substantial agreement".

From The Prison Chaplaincy, And Its Experiences by Quinby, Hosea