What’s “Chapter 11?”
Federal bankruptcy law is codified in title 11 of the United States Code. Title 11 of the United States Code (the “Bankruptcy Code)” is organized into 15 separate chapters. Chapter 11 (like chapters 7 and 13) provides a distinctly different method of proceeding under the overall provisions of the title (which are located in chapters one through five). Most individuals proceed under either chapter 7 or chapter 13. Chapter 11 is a very costly process utilized by reorganizing corporations and individuals with significant assets. In my experience, people who don’t know the difference tend to use the expressions “title 11” and “chapter 11” interchangeably as generic terms to mean a bankruptcy proceeding.