Chapter 11 reorganization is primarily known as a tool to reorganize debts. Although individuals may opt to reorganize their debts through Chapter 11 under certain circumstances, Chapter 11 is more typically used to reorganize business debts. For a business, Chapter 11 is most often used to restructure debts and slow creditor actions. However, Chapter 11 has less apparent uses, one of which is to disengage a deadweight or silent business partner or equity owners from your ...
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