It is the Chapter 11 bankruptcy law, the Company to the same protection and assistance that individuals have the right under the Federal Republic of bankruptcy statues. Every operator, whether a large company, a small partnership or even a One man - One company may file under Chapter 11 to reorganize their debts.

Chapter 11 The law stipulates that the company for filing brokeness must bear the full financial disclosure to the bankruptcy court. This means that the organization or their agents, must be a complete and detailed list of all the company assets, all of the liabilities and a full statement on the financial status and affairs of the company.

Unlike other types of bankruptcies under Chapter 11 law, the debtor is capable of as his own trustee. In Chapter 7 and Chapter 13 bankruptcies, the court appoints a trustee.

If a debtor as a trustee in a Chapter 11 bankruptcy is known as "debtor in possession", "because the trustee before the holding of the property. However, the Court is capable of a different trustee for the case, if only to show how in case of mismanagement of the entrepreneur.

After about a month from the time that he bankruptcy took place, the companies and their bankruptcy lawyer at a meeting with the various creditors of the company. Under Chapter 11 bankruptcy law, the company is also required, monthly activity reports that the company revenues and expenses. These reports are also summarized in the form of a balance sheet and profit and loss statement for the period.

Chapter 11 law allows the debtor to a financial plan during the first four months after filing a new bankruptcy is the Federal bankruptcy court. After this time, the creditors of the Company to submit filings to their plans.

The Chapter 11 law requires that the plan adopted by the debtor in a statement that the disclosure goes into detail on the financial situation and future plans. Some of the areas that are open are the following:

- An overview of the company's history and the primary cause, in the application for brokeness;

- The company's assets and liabilities;

- The revenue and expenditure for the operation, a

- Description of the company's treatment of its creditors;

- An analysis of asset liquidation, projections of future earnings;

- Fiscal impact;

- A discussion of various options for the company;

- And finally, the plan for repaying the debt.

Under Chapter 11 bankruptcy law, the plan for reorganization may provide that businesses need to operate the company in terms of payments from future income, or from the proceeds of new loans or the sale of existing assets. Creditors, the holders of priority claims, including tax, are required to be paid in full.

All secured claims, including full payment of interest and needs. Other receivables that are not primarily unsecured and receive dividend payments, at least the amount that would otherwise have, according to a Chapter 7 filing.

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