Ventures that reorganize under Chapter 11 bankruptcies may still be liquidated via Chapter 7 bankruptcies.

Question

Quizplus · Accepted Answer

While Chapter 11 bankruptcies are generally considered to be a reorganization tool, they can still result in a liquidation of the company if the reorganization plan is not successful. If this occurs, the company may be forced to file for Chapter 7 bankruptcy, which would result in a complete liquidation of the company's assets.

Ventures That Reorganize Under Chapter 11 Bankruptcies May Still Be