Although railroads are only eligible for Chapter 11 and stockbrokers and commodity brokers are only eligible for Chapter 7, all other business debtors are eligible to file under either Chapter 7 or Chapter 11.

Question

Quizplus · Accepted Answer

This statement is true. Most business debtors can choose to file under either Chapter 7 or Chapter 11, but railroads are only eligible for Chapter 11 and stockbrokers/commodity brokers are only eligible for Chapter 7.

Although Railroads Are Only Eligible for Chapter 11 and Stockbrokers