This will depend on the unique circumstances of your businesses’ finances as well as your own personal goals as a business owner. Most businesses enter Chapter 11 bankruptcy with an eye to rehabilitating their finances by restructuring debts and assets. In many cases, businesses emerge in a stronger financial condition than before declaring bankruptcy.
You can expect the following during a Chapter 11 business bankruptcy:
- A voluntary petition will be filed with the court to initiate a Chapter 11 bankruptcy case
- A schedule of assets and liabilities as well as a statement of financial affairs will be filed as part of the Chapter 11 filing
- You will remain in possession and control of the business property and operations while developing a plan to restructure and pay your business’ debts; this may include one or more sales of excess assets, or spinning out a division of the company
- A committee of creditors may be appointed to represent the interests of general creditors during the case
- If the process is successful, your business will emerge from bankruptcy with a plan in place to pay off its creditors over time while you continue to operate your business under its new structure