Originally Posted by
Excargodog
Wrong. Only 5% of Chap 11 bankruptcies are ever converted to Chapter 7, most often by the debtor themself if he/she thinks there will be more residual capital coming to them through liquidation than through reorganization. Judges approve pretty much any viable reorganization that appears that it will not take money away from secured creditors.
This is spot on. The debtors and the company are pretty much those in charge, to work it out amongst themselves. The judge just basically sits back and lets it happen, only getting involved like a football referee does. If someone commits roughing the passer, the judge will get involved.