Which of the following could be true of the proceedings under Chapter 11 of the Bankruptcy Code?

Question

Quizplus · Accepted Answer

Chapter 11 of the Bankruptcy Code is a reorganization process that allows the debtor to continue its business operations while it proposes a plan to restructure its debts and obligations. Therefore, option D is correct. Option A is incorrect because while the bankruptcy courts may oversee the proceedings, Chapter 11 allows for debtor-in-possession control, enabling the debtor to manage its own affairs. Option B is incorrect because the sale of assets and extinguishing of liabilities is more characteristic of Chapter 7 bankruptcy. Option C is incorrect because the debtor typically operates during the restructuring process under Chapter 11.

Which of the Following Could Be True of the Proceedings