Business Bankruptcy: Why You Should File for Chapter 11




The term ‘bankruptcy’ refers to the legal process whereby a company ceases operations and liquidates its assets. It is used when a company cannot pay its debts.




A business may file for Chapter 11 bankruptcy if it cannot repay its debts. This type of bankruptcy allows the company to continue operating while restructuring its finances.













Bankruptcy is the legal term for declaring bankruptcy. A company may declare bankruptcy if they cannot pay their debts. If a company declares bankruptcy, then creditors (people who lent money to the company) get paid first before any other expenses. Creditors include banks, suppliers, landlords, employees, etc. Once the company’s debts have been paid off, the remaining assets are distributed among the creditors.






Business Plan





A business plan is a written document that describes how a business will operate. It includes information about the products/services that the business will offer, the target market, and the financial projections. A business plan should be developed early in the planning stage of a business.




Business Structure





Business structure refers to the organizational structure of a business. There are three basic types of businesses: sole proprietorship, partnership, and corporation. Sole proprietorships are run by just one person. Partnerships are owned by two or more people. Corporations are owned by shareholders who elect directors to oversee operations.






Business Name





The name of a business is its identity. A good business name should be catchy, memorable, and easily pronounced. You should avoid using names that sound similar to those already being used by existing businesses.





Business License





A business license is a permit issued by a government agency that authorizes a business to conduct certain activities. In some states, a business license is not required at all; however, many cities require a business license.





Business Plan Template





A business plan template is a sample of a business plan that you can use as a guide. Many business schools and small business organizations provide free templates.





Business Plan Writing Services




If you need help writing a business plan, you can hire a professional writer. Professional writers specialize in business plans and can write them for you in less than a week.