Chapter 11 for Businesses
Chapter 11 Bankruptcy Protection for Business
Technically speaking, a business cannot apply for chapter 13 bankruptcy, but the similar Chapter 11, Title 11 of the United States Bankruptcy Code applies to every business, be it a corporation, partnership or sole proprietorship. If your business plans haven’t panned out as expected and you’re facing insurmountable debt, you could file for Chapter 11 to reorganize and save your business assets.
While Chapter 13 uniquely applies to you and your personal assets, Chapter 11 applies to your business. By filing for Chapter 11 bankruptcy in Denver for your business, it will undergo a reorganization and restructure so that the business can continue to operate and pay back debts to creditors. Additionally, Chapter 11 puts a halt to collection calls and other collection attempts from creditors through an automatic stay; it can also eliminated any post-petition debt collection.