Scenario 10-1

Scenario 10-1. Franky's Lumber Yard works with primarily small construction companies building family homes. Franky has a serious cash flow problem. She has many customers with account balances over 90 days past due. Furthermore, the economy has been growing rapidly and interest rates have just been raised. New home construction is likely to dramatically decrease. This will make it even more difficult for her customers to pay their bills. Owing in large part to the expense of her inventory and her uncollected accounts receivable, it is highly likely Franky is insolvent.
-In Scenario 10-1, which bankruptcy filing would keep creditors from foreclosing on debts during the reorganization period while including a repayment schedule for current creditors with a plan for operating more profitably in the future?

A) Chapter 7
B) Chapter 11
C) Chapter 13
D) Chapter 22