Chapter 11 bankruptcy petitions are usually filed voluntarily. However, creditors can join forces to file a Chapter 11 petition involuntarily against a business that is defaulting.
The majority of businesses will file for bankruptcy in the location where they have their main business. They can also file for bankruptcy in their home state. Many large corporations, for example, are incorporated in Jacksonville. They will file for bankruptcy in Jacksonville instead of their home state.
During Chapter 11 Bankruptcy, the debtor can continue to run their business. The Court must still approve any decisions made by the debtor, such as selling assets, breaking leases, closing or expanding business operations, and entering into contracts or agreements.