system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: What is chapter 11 bankruptcy and how and why would it help Toy "R" Us?
gpt
Bankruptcy: You owe so much money that you can't possibly pay it all. Imagine you own a company that's not doing well. It now owes a total of $1 million to various people: rent, electricity, suppliers, employees, clients you've not delivered product to.

Chapter 7 bankruptcy: Everything the company has gets sold, and the people you owe to (creditors) get a piece depending on their priority. They likely only get a part of what you owe them, or nothing. After that your company ceases to exist.

Chaper 11 bankruptcy: You promise that if you're allowed to keep operating, you can get back on your feet and it will do more good that way. Perhaps some event really screwed you over, but if given a chance you could still recover. So you enter a process where you pay who you can, keep operating under supervision, and try to get the company back on track. If it works, congratulations, your company survives. If not, you go to Chapter 7.