Which kind of bankruptcy provides time and protection to the debtor firm?

Question

Quizplus · Accepted Answer

Chapter 11 bankruptcy is also known as reorganization bankruptcy and provides the debtor firm time and protection to reorganize its debts and operations. During Chapter 11 bankruptcy, the debtor firm continues to run its operations while developing a plan to restructure its debts and finances. This process can take several months or even years and requires the approval of creditors and the court. The debtor firm can also negotiate with creditors to reduce debts, interest rates, and payment terms. This type of bankruptcy is commonly used by large corporations, but it is also available to small businesses and individuals with significant debt.

Which Kind of Bankruptcy Provides Time and Protection to the Debtor