Editing Bankruptcy (section)

=====Chapter 11=====
{{main|Chapter 11, Title 11, United States Code}}
In Chapter 11 bankruptcy, the debtor retains ownership and control of assets and is re-termed a [[debtor in possession]] (DIP).<ref>{{cite web|title=11 U.S. Code § 1101 – Definitions for this chapter|url=https://www.law.cornell.edu/uscode/text/11/1101|website=Legal Information Institute|publisher=Cornell Law School|access-date=19 October 2017|url-status=live|archive-url=https://web.archive.org/web/20171019221324/https://www.law.cornell.edu/uscode/text/11/1101|archive-date=19 October 2017}}</ref> The debtor in possession runs the day-to-day operations of the business while creditors and the debtor work with the Bankruptcy Court in order to negotiate and complete a plan. Upon meeting certain requirements (e.g., fairness among creditors, priority of certain creditors) creditors are permitted to vote on the proposed plan.<ref>{{cite web|title=11 U.S. Code § 1126 – Acceptance of plan|url=https://www.law.cornell.edu/uscode/text/11/1126|website=Legal Information Institute|publisher=Cornell Law School|access-date=19 October 2017|url-status=live|archive-url=https://web.archive.org/web/20171019220225/https://www.law.cornell.edu/uscode/text/11/1126|archive-date=19 October 2017}}</ref> If a plan is confirmed, the debtor continues to operate and pay debts under the terms of the confirmed plan. If a specified majority of creditors do not vote to confirm a plan, additional requirements may be imposed by the court in order to confirm the plan. Debtors filing for Chapter 11 protection a second time are known informally as "Chapter 22" filers.<ref>{{Cite news|url=https://www.wsj.com/articles/SB10001424052970204124204577151211961572458|title=Twinkies Maker Preparing for Chapter 11 Filing|work=The Wall Street Journal|date=January 10, 2012|first1=Mike|last1=Spector|first2=Julie|last2=Jargon|url-status=live|archive-url=https://web.archive.org/web/20170709060131/https://www.wsj.com/articles/SB10001424052970204124204577151211961572458|archive-date=July 9, 2017}}</ref>

In a corporate or business bankruptcy, an indebted company is typically recapitalized so that it emerges from bankruptcy with more equity and less debt, with potential for dispute over the valuation of the reorganized business.<ref>{{cite journal |last1=Dick |first1=Diane |title=Valuation in Chapter 11 Bankruptcy: The Dangers of an Implicit Market Test |journal=University of Illinois Law Review |date=2017 |volume=2017 |issue=4 |page=1487 |url=https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=1762&context=faculty |access-date=5 November 2020 |archive-date=21 March 2020 |archive-url=https://web.archive.org/web/20200321062248/https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=1762&context=faculty |url-status=live }}</ref>