Bankruptcy is a legal status/process for handling a situation where a business is about to run out of money. The purpose of this process is to save the business

Bankruptcy is a legal status/process for handling a situation where a business is about to run out of money. The purpose of this process is to save the business, so that creditors can receive what the business owes them, and to prevent unnecessary harm due to chaos that might erupt. So in a way it's the opposite of a situation where the business just stops operating immediately. In a successful chapter 11 bankruptcy, several parties lose some money, but the business survives and can continue operating. That's the goal and purpose of why "chapter 11" exists in the first place.