A Chapter 11 debtor may use bankruptcy as an excuse for not performing contractual obligations.

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Chapter 11 bankruptcy allows a debtor to reorganize their finances and operations, which may include asking the court to temporarily relieve them from performing certain contractual obligations. This is known as a "stay" or "breathing spell," which gives the debtor time to sort out their financial situation. However, the debtor still remains responsible for fulfilling their obligations once the bankruptcy proceedings are complete.

A Chapter 11 Debtor May Use Bankruptcy as an Excuse