Utilizing the bankruptcy laws, Yankee 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 bankruptcy allows a business to reorganize and continue operations while paying a limited proportion of its current debts. Chapter 7 bankruptcy involves liquidation, while Chapter 13 bankruptcy is for individuals with regular income to develop a plan to repay all or part of their debts. There is no Chapter 14 bankruptcy.

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