In a Chapter 11 bankruptcy, the individual or business filing bankruptcy (debtor) has the first opportunity to propose a reorganization plan—to reorganize the debtor’s operations and payment of debts. A Chapter 11 plan is an agreement between the debtor and its creditors as to how the debtor will operate and pay its debts going forward.

Chapter 11 plans often include downsizing of the debtor’s operations to reduce expenses, and renegotiation of debts. If the proposed reorganization plan is accepted by the court and the creditors, the bankruptcy process moves forward.

In Oregon, as in all states, Chapter 11 bankruptcy is governed by federal law under the United States Bankruptcy Code. When an individual or business files for Chapter 11 bankruptcy, the debtor is given the initial opportunity to propose a reorganization plan. This plan outlines how the debtor intends to restructure its business operations and repay creditors. The reorganization often involves downsizing to cut costs and may include renegotiating debts with creditors. The debtor's proposed plan must be voted on by the creditors and confirmed by the bankruptcy court to be effective. If the plan is accepted, the debtor will then proceed to operate under the terms of the plan and work towards paying off the restructured debts. It's important to note that while the process is governed by federal law, local rules and procedures can vary, so it may be beneficial to consult with an attorney experienced in Oregon's bankruptcy courts for specific guidance.