Chapter 11 is for entities which need to reorganize but which are unable to qualify for Chapters 13 or 12. This includes entities such as corporation or partnerships or LLCs, or individuals whose debts exceed the debt limits of Chapter 13. The process restates the contractual relationship between the debtor and the creditors so that the creditor will receive a fair return given the circumstances, and the debtor will be permitted to retain property and/or continue the operation of an otherwise fruitful business.
Chapter 11 is the most expensive and complicated type of bankruptcy among Chapters 7, 11, 12, and 13. However, sometimes, it is necessary to resort to Chapter 11 simply because no other chapter under the code is available to address the issues confronted by a particular debtor.
Such issues generally involve the need of the debtor to reorganize instead of completely liquidating in Chapter 7 and Chapters 12 and 13 are not available due to the nature of the debtor or the extent of the debtor's debts.
Chapter 12 is limited to debtors whose significant income comes from farming or fishing business operations.
Chapter 13 is limited to individuals (not statutory entities such as LLCs and corporations). Chapter 13 also imposes limits as to how much secured and unsecured debt the debtor has. The limits are relatively generous for the majority of debtors but for those who exceed these limits and need to reorganize because liquidation is unacceptable, then the debtor might resort to Chapter 11 for that purpose.