“Bankruptcy Code” refers to Title 11 of the United States Code which governs the Bankruptcy process, including the two common forms of relief for a company declaring Bankruptcy – liquidation and reorganization.

Chapter Seven of the Bankruptcy Code details the liquidation process whereby the company’s Assets are sold for cash to pay back its Creditors. Chapter Eleven of the Bankruptcy Code provides the reorganization process where the company creates a plan to restructure its Debt while continuing business operations under the U.S. Bankruptcy Court’s supervision.

See also Bankruptcy.