Chapter 11 Bankruptcy is filed almost exclusively by business entities. Commonly called a reorganization, Chapter 11 Bankruptcy enables a business to restructure its debts with the goal of emerging as a more profitable enterprise.
Filing a Chapter 11 Bankruptcy gives business access to powerful tools, including the ability to reject leases for unprofitable locations and negotiate a plan that can modify, reduce, and even eliminate debt.
Bankruptcy is an option that is typically exercised as a last resort. You should be careful , however, not to wait until it is too late. The best time to reorganize is when you first realize that debt is threatening the survival of your business.