What Is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is a form of bankruptcy that involves the reorganization of a company's debt structure. This type of bankruptcy allows businesses to continue operating while restructuring.
How Does Chapter 11 Work?
During a Chapter 11 case, you will develop a plan of reorganization. This is a plan that defines how the business will operate and pay its financial obligations. Most plans include payment to creditors over time.
What Are the Advantages of Chapter 11?
When filing a Chapter 11 bankruptcy, the company remains in control of its assets and can continue business operations. This means the business name and customer base are not lost. This process can help you get through to the other side.
Does My Company Need Help?
A good way to figure out if bankruptcy makes sense for your business is to assess your financial situation.
Ask yourself these key questions:
- Are you getting off debts that you had planned to pay?
- Are collection agencies calling you?
- Are you uncertain of how much money you owe?
- Are you unable to pay your employees?
- Are you unable to pay vendors or suppliers?
- Is your lender coming after you?