Difference between Chapter 7 and Chapter 11?

How to answer

Chapter 7 is liquidation: a trustee sells the assets and distributes proceeds down the priority waterfall, and the business ceases. Chapter 11 is reorganization: the company (usually as debtor-in-possession) stays operating, restructures its balance sheet via a plan of reorganization, and emerges as a going concern. RX work centers on Chapter 11 because that is where value is preserved and fought over.

Key idea: Liquidate and wind down vs reorganize and emerge.