Chapter 11 bankruptcy is aimed at preserving the core of an existing business.  Less commonly, it is used to sell or close down an existing business in a way that maximizes the funds available for creditors.

The key element in Chapter 11 is that creditors are presented with a detailed written plan for reorganizing the debtor's finances. A plan of reorganization can take a creative approach to resolving the debtor's financial problems. Creditors vote on whether or not to accept the proposed reorganization plan (they do not have this right in Chapter 7).

In contrast to Chapter 7 and Chapter 13, there is no automatic appointment of a bankruptcy trustee.  Current management remains in control, subject to the oversight of the Office of the US Trustee, the bankruptcy judge, and potentially a committee of unsecured creditors.

Historically, Chapter 11 was designed primarily for medium to large businesses.  A streamlined version of Chapter 11 has recently become available to small business debtors.

Individuals can file Chapter 11.  Few do because the cost for a traditional Chapter 11 case can be quite large.  It is simply not cost-effective for the typical consumer.