Small businesses that are in financial distress have three potential bankruptcy options. These are Chapter 7, Chapter 11, and Chapter 13. •Individuals typically file Chapter 7 or Chapter 13 rather than Chapter 11, because these are simpler and less expensive. •A chapter 11 bankruptcy is a form of bankruptcy restructuring, available to individuals, businesses, and partnerships. •It does not specify limits on the quantum of debts, as Chapter 13 does. •Chapter 11 is the common choice of large corporations seeking to restructure their debt.
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