Known as a reorganization bankruptcy, Chapter 11 is most typically used by businesses to gain bankruptcy protection while reorganizing debt without the oversight of a court appointed trustee. Once filed, the debtor becomes the debtor in possession which means that possession of assets is maintained during the reorganization. If the debtor’s plan of reorganization is not confirmed by the court, the case is converted to Chapter 7 Bankruptcy, or a Chapter 11 trustee is appointed. During reorganization, the debtor in possession has the right to employ professionals to assist with the case.
