Bankruptcy Chapter 11
What is Chapter 11 Bankruptcy?
Chapter 11 Bankruptcy does for businesses what chapter 13 does for individuals. Chapter 11 allows businesses to continue running in exchange for settling debts. Creditors are often willing to accept a repayment plan offered by a business under Chapter 11 because it means they get something rather than nothing. More...
What are the dangers of Chapter 11 bankruptcy?
Many companies have filed for bankruptcy when they should have shut up shop. If your business is in trouble you may be better off selling your assets as a means of cutting your loses and paying off creditors. Consider whether bankruptcy may be simply delaying the inevitable.
What is more, by closing down the business you can control the debt by deciding how much and who to repay first. Under bankruptcy, the process is taken out of your hands and it will be the trustee who dictates repayments and to whom.
Always seek independent financial advice before considering bankruptcy.
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