Your business took time and hard work to build, and the thought of having to shut it down due to poor financial planning is frustrating, to say the least. The good news for you is that bankruptcy doesn't always require you to shut your business down. Certain kinds of bankruptcy allow you to remain open while you restructure the business so that you can bring in a profit.
Business reorganization can occur with a Chapter 11 bankruptcy. This form of bankruptcy allows you to reorganize while you continue running your business. This is best for companies that bring in profits and who have employees since they can continue to pay certain debts and expenses as they work through the factors that are straining the business.
To go through the process of reorganization, business owners must present a plan for the reorganization that outlines what will take place and how they'll handle the creditors. Creditors vote on the plan, and if they agree with it, the plan may be approved by the court.
Reorganization plans typically provide payments to creditors over a longer period of time than usual, sometimes exceeding two decades. This isn't necessarily a quick fix, either, since it can take a year or longer to approve a restructuring plan. Still, if you believe that restructuring the business is what it will take to get back on track, this could be the right option and one that allows you to save your business. Your bankruptcy attorney can help you consider this and other bankruptcy options, to see which is right for you.