Chapter 11 Bankruptcy

[Dan Seavey]

About 4-5 months back, I was notified via constant contact by a local auction company of an upcoming property that I had interest in.  10 days before the auction date, I was notified that the auction had been cancelled due to the owner "filing bankruptcy."  From what I understand (US Bankruptcy Court filings), this property has multiple liens on it, and the owner is filing Chapter 11 bankruptcy.  If this auction was lender ordered, then how and why was this auction cancelled?  I am unfamiliar with Chapter 11 filings and wondering if I can expect these properties to be back on the auction board at some point.  As I understand it, Chapter 11 is designed to "restructure" the owners debts, allowing them to liquidate without ruining their credit, but not allowing them to keep any of their properties?

Can anyone explain the Chapter 11 process and if you have experience/knowledge of what happens in this situation?  I am optimistic that this property will come back to auction after the Bankruptcy Court reviews the voluntary petition.

Dan