Which of the following is a key aspect of Chapter 11 bankruptcy?

In Chapter 11 bankruptcy, the primary focus is on the reorganization of the debtor's business operations. This type of bankruptcy is often utilized by businesses that need to restructure their debts while continuing to operate. The goal is to enable the debtor to emerge from bankruptcy as a viable entity by creating a plan to pay creditors over time, which might include reducing debt, renegotiating contracts, or changing operational processes.

This reorganization process allows the business to maintain control of its assets and operations, which is crucial for its survival and rehabilitation. Unlike liquidation bankruptcy where assets are sold off to pay debts, Chapter 11 allows for a more strategic approach to financial recovery, making it possible for the company to thrive post-bankruptcy.

The other options do not accurately describe key aspects of Chapter 11 bankruptcy. Immediate liquidation is characteristic of Chapter 7 bankruptcy, while the cancellation of all debts can occur in a different context, such as Chapter 7 or upon confirmation of a plan in a Chapter 11 proceeding, but is not a general feature of Chapter 11 itself. Protection against lawsuits can be part of the process, but it is not the central theme like reorganization is. Thus, acknowledging the need for restructuring underlies the essence of Chapter 11