Chapter 11, often referred to as reorganization, allows a debtor, typically a corporation or partnership, to remain in business while restructuring its debts under a court-approved plan.
Voluntary bankruptcy is a legal proceeding initiated by the debtor who files a petition of bankruptcy in the appropriate U.S. district court under the Bankruptcy Act. This process contrasts with involuntary bankruptcy, where creditors petition the court to declare the debtor insolvent.
