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Index/Topics/Chapter 11 Bankruptcy Protection

Chapter 11 Bankruptcy Protection

Chapter 11 bankruptcy protection for troubled businesses, including its effects on owners' personal assets and creditor collection.

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Jan 21, 2026

What legal and accounting mechanisms allow corporate Chapter 11 reorganizations to shield personal liability for owners?

protects a troubled business by placing it under the bankruptcy court’s supervision, imposing an automatic stay against creditor collection, and allowing the debtor — usually the company’s existing ma...

Jan 14, 2026

What legal strategies allowed corporate owners to shield personal assets during Chapter 11 reorganizations?

Corporate owners were able to keep personal assets out of reach during Chapter 11 reorganizations mainly because the law treats corporations and many limited‑liability entities as separate legal perso...