
Bankruptcy itself is not an enemy to your finances, and you should not see it that way—unless you never want to get out of debt. Contrary to the widespread opinion that filing for bankruptcy will hurt you, Chapter 11 is not the end of the world, nor does it make you forever ineligible to receive credit. Bankruptcy status is a way to find financial relief to overwhelming debt, so that you can build a brighter financial future. At some point in time, many people experience financial woes. If you find that there is no end to your financial struggles that you can manage, filing for bankruptcy should be considered as finally taking charge of your finances.
What is Unique About Chapter 11?
Unfortunately, Chapter 13 and Chapter 7 bankruptcy laws do not always provide businesses with the financial relief they need. Commonly referred to as “the reorganization chapter” of the bankruptcy code, Chapter 11 allows you to reorganize your debt and keep most of your assets. Through the sale of certain assets (mostly of your choosing), you are allowed to use the profits to pay down your debt and refinance current debt. Filing for Chapter 11 bankruptcy is typically more beneficial for businesses; however, individuals can also file for Chapter 11 bankruptcy.
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