In which bankruptcy provision can a business act as its own trustee?

In Chapter 11 bankruptcy, a business can act as its own trustee. This type of bankruptcy is often referred to as "reorganization" and is primarily designed for corporations and partnerships, allowing them to continue operating while restructuring their debts. Under Chapter 11, the owner or management of the business retains control of the operations and can propose a plan to repay creditors over time, which can be beneficial for the business's ongoing viability.

This provision empowers the business to manage its own affairs during the restructuring period, allowing for a more flexible approach to resolving debts compared to other types of bankruptcy provisions where a trustee is appointed to manage the assets and business operations. This capability is critical for businesses seeking to rehabilitate themselves rather than liquidate, which distinguishes Chapter 11 from other bankruptcy chapters such as Chapter 7, which typically involves asset liquidation, or Chapter 9 and Chapter 12, which cater to municipal entities and family farmers, respectively.