Circuit City Chapter 11 Explained

We reported earlier today that Circuit City has filed for Bankruptcy protection; this is better known as Chapter 11. For those of you who do not know what Chapter 11 is, we will explain it to you, just so you understand.

Chapter 11 is a chapter of the United States Bankruptcy Code, this code permits reorganization under the bankruptcy laws of the U.S. Chapter 11 is available to any business, no matter if they are a sole partnership or a corporation, as well as individuals.

So what forces a business like Circuit City to file for Chapter 11, well if the troubled business is unable to service their debt or pay creditors. For all this information in detail visit Wikipedia