When a firm files a ________ bankruptcy, it receives immediate protection against all lawsuits and other efforts to collect from the firm.
A)Subchapter S
B)Subchapter C
C)Chapter 7
D)Chapter 11

Question

Quizplus · Accepted Answer

Chapter 11 bankruptcy allows a firm to reorganize its debts and operations while still remaining in business. One of the benefits of this type of bankruptcy is that the firm receives immediate protection against all lawsuits and other efforts to collect from the firm, giving it time to restructure and get back on its feet.

When a Firm Files a ________ Bankruptcy, It Receives Immediate