Starting a business in the United States can be risky. With an economy that has ebbed and flowed over the last several years, it is no wonder that some businesses are having a difficult time surviving. Fortunately, options exist for businesses that want to restructure their company and continue their operations.
A Chapter 11 bankruptcy is very different from other forms of bankruptcy in that it allows the business to remain alive. The process begins with a petition to the bankruptcy court. The business must then also file a lists of its assets and liabilities, contracts and leases, income and expenditures and a statement of financial affairs. Once the paperwork is filed, the debtor remains a debtor in possession until a plan of business reorganization is confirmed. Sometimes, a trustee will be appointed for the company.