Chapter 11 bankruptcy is a legal process that allows businesses to reorganize their debts while continuing to operate. This type of bankruptcy is often used by companies facing financial difficulties but still have the potential to return to profitability. During this process, the business proposes a plan to restructure its debts, which must be approved by the court and creditors. In a Chapter 11 case, the company typically remains in control of its operations as a "debtor in possession." This means that the existing management continues to run the business while working on the reorganization plan. The goal is to emerge from bankruptcy as a healthier, more viable entity, often with reduced debt obligations.