Chapter 11

Chapter 11 is like a grown-up's time-out. When a company can't afford to pay its bills or debts, it can ask the court to put it in Chapter 11 so it has time to figure out how to become "good at paying bills" again.

During Chapter 11, the company gets a special kind of help from the court called "protection." It's like when you cover your eyes during hide-and-seek and nobody can catch you. The company's protection stops other people from coming after it for money it owes, so it can focus on making a plan to pay off those debts.

The court also lets the company keep running its business as long as it's not doing anything too crazy. This is important because if the company can keep making money, it will be easier to pay back what it owes.

Sometimes, the company needs to make changes to become "good at paying bills" again. For example, it might need to cut some costs like getting rid of toys it doesn't play with anymore, or it might need to find new ways to make money like selling lemonade on a hot day. The court has to approve any big changes the company wants to make because it wants to make sure everyone involved is happy with the plan.

When the plan is ready, the court has a final say on whether it's good enough. If the company can convince the court it will become "good at paying bills" again, the court will let it finish Chapter 11 and move on with its life. It's like when you show your mom you've cleaned up your toys and she says you can start playing again.