Chapter 11 Bankruptcy - A Brief Overview

An attorney with more than 20 years of legal experience,

Suzzanne Uhland currently serves as a partner at OMelveny &
Myers, LLP, a law firm that operates 16 offices in cities throughout
the world. In addition to other areas of the law, Suzzanne Uhland
has extensive experience representing parties in Chapter 11
bankruptcy cases.

Commonly known as a reorganization bankruptcy, Chapter 11
typically allows debtors to maintain control of their estate while
they reorganize their financial obligations through a creditor-
approved and court-approved debt repayment plan. Chapter 11
repayment plans may require a debtor to sell certain assets,
refinance existing debt, or renegotiate leases and contracts,
among other things.

Although Chapter 11 is available to individuals, it is a filing
typically used by businesses, such as corporations, partnerships,
and sole proprietorships. However, some publicly vested
businesses, including insurance companies, utilities, and certain
conglomerates, are not allowed to file for Chapter 11. While the
filing can have advantages, Chapter 11 is an expensive and
complex form of bankruptcy that requires the expertise of an
experienced bankruptcy attorney.