A Chapter 11 Bankruptcy is the type of bankruptcy that’s used specifically for corporations. The reason it exists is to allow your business to reorganize itself, come to some sort of a reorganized payment plan to different types of creditors and in some cases, creditors will be wiped out entirely. But the whole purpose of it is to allow your business to restructure that debt and get back on good footing, go back into the world and be still a functioning corporation.
In some cases, if a person is ineligible for a Chapter 13 bankruptcy, maybe they have too much debt to fit into a Chapter 13, an individual person CAN file a Chapter 11, although that is rare. Chapter 11 is a very powerful form of bankruptcy, but it’s also very complicated. So, it’s definitely the sort of thing that you would want to have an in-depth discussion with your attorney before you decide to go that way.
So, in many cases, a Chapter 11 bankruptcy can make sense for you. In some cases, the business itself is no longer salvageable or if you tried a Chapter 11 and it, unfortunately, doesn’t work out, another option would be the filing of a Chapter 7 bankruptcy, which is a safe way to bring the business to an end, to finish the corporation if you feel like it’s no longer a functioning business.