Yes, Chapter 11 bankruptcy is a reorganization of debt. It allows businesses to restructure their finances and develop a plan to repay their debts over time. This can be a beneficial option for businesses facing financial difficulties and help them avoid liquidation and continue operations. However, Chapter 11 can be a complicated process to navigate without sound legal advice.

Since the Small Business Reorganization Act (SBRA) was enacted in 2019, filing for Chapter 11 has become a more simplified process for small businesses. The SBRA gives businesses more control over their restructuring, allowing them to keep ownership of their businesses.

No, Chapter 11 cannot be reversed. Once a Chapter 11 bankruptcy case is filed and the court approves the restructuring plan, it becomes a legal process that cannot be undone. However, if a business finds it cannot comply with the terms of the plan, it may be able to modify or amend it. An experienced bankruptcy attorney can help you navigate this process.