Which Chapter corresponds to Business in the four types of bankruptcy?

• A. Chapter 7 Liquidation
• B. Chapter 11 Business
• C. Chapter 12 Farmland
• D. Chapter 13 Individual

Answer: (B)

When a business is in distress but aims to keep operating, the chapter designed for that situation is Chapter 11. It provides a way to reorganize debts under court supervision while the business continues to run, with protections like an automatic stay and a plan of reorganization that can modify terms, reject or renegotiate contracts, and ultimately restore solvency. The other options serve different purposes: Chapter 7 is liquidation, typically ending the business as assets are sold to pay creditors; Chapter 12 is aimed at family farmers and fishermen with regular income; Chapter 13 is for individuals with regular income to repay debts under a court-approved plan. So Chapter 11 is the one that specifically corresponds to business reorganization.