A Business Filing for Chapter 11 bankruptcy protection implies that the company is on the verge of bankruptcy, but believes that it can once again become successful if it is given an opportunity to reorganize its assets, debts, and business affairs.
What should you do if you own or operate a business with mounting debts and your creditors have started to demand payments, which you are unable to pay? You can go into denial and let it all drag out, or you can consider negotiating arrangements with each creditor, but both of these options just delay the resolution of your financial problems with no respite in sight. If your business has mounting debts that you are unable to pay back, then Chapter 11 bankruptcy is a great option for you. It will allow you and your business to reorganize and restructure the debt and it will buy you time to save your business or manage an orderly liquidation.