This paper investigates whether the net operating losses (NOLs) impact on the decision to file under Chapter 11. Using a sample of U.S. public firms in the period 1984-2016, we provide evidence that the net operating losses have a positive association with the decision to file for Chapter 11. This research also investigates a sample of firms emerging from Chapter 11 and adopting fresh start reporting. The results show that fresh start firms benefit from lower tax rates after the emergence from Chapter 11. Collectively, these results indicate that Chapter 11 has been for decades an effective way to preserve and exploit tax losses. Further investigations show that, after the approval of the Tax Cuts & Jobs Act, the corporate reorganization under Chapter 11 substantially decreases, as the new regulation reduces the tax incentives to file for the procedure. This study can contribute to previous research on the literature studying the effects of NOLs on important firm decisions. It can also contribute to the literature on Chapter 11. This research has policy implications.