Chapter 11 is virtually always on for CORPORATIONS and is a "reorganization" rather than a liquidation.Chapter 7 dissolves the corporation.C-7 can happen, and frequently is, shortly after C-11...
The advantage to a Chapter 11 filing is that the debtor is permitted to remain in possession of the entity, which is especially important in business filings since the debtor may continue to operate...
Lets start: Stockholders are owners of the company. They are NOT creditors. The company owes them nothing. They in fact, would personally owe the debts of the company, except the amount they are...