What chapter of bankruptcy did Publishing Clearing House sweepstake winners file for?

Publishing Clearing House sweepstake winners typically file for Chapter 11 bankruptcy in a situation where they experience significant financial distress, often linked to unexpected winnings and the subsequent tax implications. Chapter 11 is designed for businesses and individuals that need time to reorganize their debt while continuing operations. This type of filing allows the winners to negotiate their debts, access future earnings, and manage the complexities arising from their unexpected financial situation, particularly in terms of tax liabilities on their winnings.

In this context, the other options represent different bankruptcy chapters that do not align as closely with the circumstances typically faced by PCH sweepstake winners. Chapter 7 is meant for liquidation of assets, while Chapter 13 is structured for individuals with regular income who want to repay their debts over time. Chapter 9 applies to municipalities, which is irrelevant in this scenario. Hence, Chapter 11 is the most suitable option for managing the unique financial challenges faced by these sweepstake winners.