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Chapter 11 bankruptcy may benefit your struggling company

Everyone who starts a business has the intention of growing it so that it's successful. It isn't a pleasant thought to think that all your hard work is going to end with the company not doing as well as you expected it to. You can evaluate your options and come up with a plan when you need to seek financial relief for the business.

One option that you have is to file for bankruptcy for the company. Chapter 11 bankruptcy is reserved for businesses. This reorganization gives you the ability to restructure your debts, but you have to ensure you can meet your obligations if you're going to do this.

When you file a Chapter 11, the business can remain open and will likely continue to operate as normal. As the debtor in possession, you'll still make decisions about the company. The exception to this is if there is an accusation of fraud or gross incompetence. In those cases, there may be a trustee who's appointed by the court to run the business.

You shouldn't think this is a quick or easy way to regain control of the finances of the company. It is going to take time and it can be costly. You must think carefully about whether this is truly the best decision for your company before you take this step.

It might benefit you to work with someone who is familiar with business bankruptcy so you can find out how the process will move forward. You have to consider the fate of the company, as well as the impact this will have on your personal life.

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