Chapter 11 is probably the most flexible of all the chapters. Chapter 11 can be used to accomplish the following:

  1. Reject and renegotiate unfavorable leases, as well as other contracts.
  2. Renegotiate terms of secured financing, including interest rates, when payments are due, and allow the debtor to maintain the secured collateral.
  3. Stop forced liquidation of assets and allow the business time to sell its assets or the entire business for its going concern value.
  4. Stop lawsuits or other litigation costing the business lots of money.
  5. Negotiate new credit terms with suppliers and other creditors.
  6. Repay overdue payables and debts over a greater period of time.

Chapter 11′s flexibility makes it generally much more expensive to the debtor. They require far more work than Chapter 7 or Chapter 13s including monthly operating reports, quarterly trustee payments, negotiating with creditors, coming up with a reorganization plan unique to the situations, soliciting votes, working out adequate protection orders, and possibly having to file a cash collateral motion.