You worked hard to create your business but due to an unfortunate turn of events, you've been unable to keep up with the demands of the business. Now, you're hoping that a bankruptcy will help you get out of trouble and keep your business running in the future.
One kind of bankruptcy you may want to consider is Chapter 11 bankruptcy. Chapter 11 bankruptcy is also known as reorganization bankruptcy. The goal of this form of bankruptcy is to give the business a chance to reorganize and to continue business in the future. During the bankruptcy, a court-appointed trustee is appointed to monitor the business. In some cases, you could be appointed as the trustee.
With this type of bankruptcy, it gives you a chance to outline how you plan to deal with creditors and to pay them back. Creditors then get a chance to vote on the plan and decide if they agree with it. If the creditors and court believe that the plan will work out fairly, then it will be approved. If not, the plan will be reworked.
Interestingly, Chapter 11 bankruptcies can take over 20 years to resolve completely, which gives business owners many years to pay back what they owe to creditors. It's fair to say that not all Chapter 11 bankruptcies work out in the end, but if the plan is good, then there is a better chance of success.
Your attorney will talk to you more about this and other types of business bankruptcies that may suit the situation you've found yourself in.