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Buy custom What to do if your business fails

Essay's paper info
Topic: Business
Number of pages / Number of words: 7 / 1947
Essay's paper body

However, some debts cannot be discharged in a bankruptcy proceeding (701).

According to Scarborough and Zimmerer another option is Chapter 11 bankruptcy. This chapter addresses reorganization and is available for both individual and business debtors. The purpose of Chapter 11 is to rehabilitate a business as a going concern or reorganize an individual's finances...


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The Chapter 11 debtor is given a fresh start through the binding effect on all concerned of the order of confirmation of a reorganization plan. A bankrupt company might use Chapter 11 to reorganize its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court (701-702)...


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