Chapter 19. A Trip through Chapter 11 Bankruptcy
And that's why earlier today GM did what Chrysler has successfully done and filed for Chapter 11 bankruptcy with the support of its key stakeholders and the United States government. In all likelihood, this process will take more time for GM than it did for Chrysler because GM is a bigger, more complex company. But Chrysler's extraordinary success reaffirms my confidence that GM will emerge from its bankruptcy process quickly and as a stronger and more competitive company.
When General Motors, Chrysler, and United Airlines filed for bankruptcy, they filed under Chapter 11 of the Bankruptcy Code. Most people think about large corporations when they hear Chapter 11 bankruptcy because the typical case involves an entity that owns or operates a business. Large and small companies, whether publicly or privately owned, qualify for Chapter 11 bankruptcy relief. They can file even when they have sufficient assets to cover their debts.
Individuals may also be debtors in Chapter 11 bankruptcy cases. Typically, individuals who seek bankruptcy relief under Chapter 11 do so because their debts exceed the limitations under Chapter 13. An individual Chapter 11 case closely resembles a Chapter 13 case because debtors must devote their property and their projected ...
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