Utilizing the bankruptcy laws, Speedster Distribution petitioned the court to reorganize and continue operations while paying only a limited proportion of its current debts. This represents an example of a Chapter ________ bankruptcy.
A) 7
B) 11
C) 13
D) 14

Question

Quizplus · Accepted Answer

Chapter 11 of the bankruptcy code allows a firm to reorganize and continue operations. During this time period, the court appointed trustee monitors the firm's activities to protect the interests of creditors. While only some debts are paid, Chapter 11 is designed to help both debtors and creditors.

Utilizing the Bankruptcy Laws, Speedster Distribution Petitioned the Court to Reorganize