Business Bankruptcy

Business bankruptcy can provide a way for a business to deal with debts that have become insurmountable. For larger businesses that wish to remain operational during bankruptcy, Chapter 11 is often the best option. A Chapter 11 bankruptcy allows a business to restructure its debts while continuing operations, but preparation and overseeing of the Chapter 11 plan can be expensive and time consuming. Some businesses may operate in Chapter 11 for years and the total fees and costs associated can amount to thousands, or even hundreds of thousands of dollars. For smaller individual businesses or sole proprietors, a Chapter 11 is often out of reach and the bankruptcy takes the form of either a personal Chapter 13 or Chapter 7. Those businesses that are closing their doors for good may also opt for a corporate Chapter 7, or total liquidation, bankruptcy. This section contains articles and answers to frequently asked questions to aid you in understanding these types of bankruptcies and how business bankruptcy works.