To avoid costly mistakes in the complex process of bankruptcy, it is important to access all options before making a final decision on your strategy.

Chapter 11 bankruptcy is a legal process that allows businesses and individuals to reorganize their debts and assets under the bankruptcy laws of the United States. It is often referred to as a "reorganization" bankruptcy and is available to every business, whether organized as a corporation, partnership, or sole proprietorship, and to individuals. Chapter 11 bankruptcy is typically used to reorganize a business, which usually involves proposing a plan of reorganization to keep the business alive and pay creditors over time.

However, it can also be used as a mechanism for liquidation. When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 11, the debtor remains in possession and has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. 

Chapter 11 usually results in the reorganization of the debtor's business or personal assets and debts but can also be used as a mechanism for liquidation.

Chapter 11 bankruptcy is a useful but expensive tool, and it may make sense for small businesses that want to keep their business running and get debt relief. However, it can be extraordinarily complicated, and it is wise to consult with a qualified bankruptcy advisor and attorney.