Define: Chapter 11

UK Accounting Glossary

Definition: Chapter 11



Advertisement



Full Definition of Chapter 11


Chapter 11 is a section of the US Bankruptcy Reform Act of 1978. Chapter 11 allows partnerships, corporations, and individuals who are unable to service debts or pay its creditors, to seek judicial relief for re-organization. On Chapter 11 filing, the court imposes a moratorium on foreclosures, repossessions, tax levies and other creditor actions, and enforces a repayment plan. Chapter 11 debtor should present a plan of reorganization within 120 days and get it accepted within 180 days after filing Chapter 11 petition. Under Chapter 11, if one half the creditors including bondholders and stockholders, or creditors for two-thirds the debt amounts agree to the plan, it is accepted. A Chapter 11 debtor has to file monthly reports with the US Trustees Office, the bankruptcy division under the Justice Department. According to Chapter 11, a creditor also can initiate re-organization proceedings. The US Trustees Office will develop a plan of reorganization in consultation with the debtor, creditors, and stockholders.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/chapter-11/
Modern Language Association (MLA):
Chapter 11. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 19, 2020 https://payrollheaven.com/define/chapter-11/.
Chicago Manual of Style (CMS):
Chapter 11. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/chapter-11/ (accessed: February 19, 2020).
American Psychological Association (APA):
Chapter 11. PayrollHeaven.com. Retrieved February 19, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/chapter-11/

Definition Sources


Definitions for Chapter 11 are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.