A corporate debtor must be "out of business" before it can file a bank?ruptcy petition for reorganization under Chapter 11.

Name: A corporate debtor must be "out of business" before it can file a bank?ruptcy petition for reorganization under Chapter 11.
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A corporate debtor does not need to be "out of business" before filing for reorganization under Chapter 11. In fact, the purpose of Chapter 11 is to allow a struggling company to reorganize its debts and continue operating as a going concern.

A Corporate Debtor Must Be "Out of Business" Before It