Chapter 11 of the Bankruptcy Code generally provides for reorganization—usually of a corporation or partnership. A chapter 11 debtor (bankrupt entity) usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in a chapter 11 bankruptcy filing.
In Wyoming, as in all states, Chapter 11 of the Federal Bankruptcy Code governs the process of reorganization for businesses, including corporations and partnerships, as well as individuals engaged in business activities. Under Chapter 11, a debtor typically proposes a reorganization plan with the aim to continue business operations while repaying creditors over an agreed period. This type of bankruptcy is designed to allow for restructuring of the debtor's business affairs, debts, and assets. It is a complex process that often involves negotiation with creditors and can be a lengthy procedure. While state law can influence certain aspects of the bankruptcy process, such as exemptions and the treatment of specific types of debts, the process itself is governed by federal law and cases are handled in federal bankruptcy courts. Debtors in Wyoming seeking to file for Chapter 11 would do so in the United States Bankruptcy Court for the District of Wyoming. It is advisable for debtors considering Chapter 11 to consult with an attorney who is experienced in bankruptcy law to navigate the intricacies of the process.