Chapter 11 bankruptcy occurs when a business has to liquidate all of its assets in order to pay off its creditors.

Name: Chapter 11 bankruptcy occurs when a business has to liquidate all of its assets in order to pay off its creditors.
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Chapter 11 bankruptcy is primarily used for the reorganization of a business, allowing it to keep its assets and continue operations while working to pay off its debts. Liquidation of assets is more closely associated with Chapter 7 bankruptcy.

Chapter 11 Bankruptcy Occurs When a Business Has to Liquidate