Business Chapter 11
Chapter 11 is also referred to as business reorganization bankruptcy. This is more common for Corporations to file and partnerships. You may file if you’re a sole proprietorship as long as your income levels are too high. Under this Chapter of bankruptcy, business is allowed to continue to operate as normal, under an appointed trustee.
The company will need to file a plan that detailed how it will pay its creditors. Once the plan is submitted the creditors get a vote on it. If the court feels the plan is fair and equitable it will approve it. This does allow payments to take place over time. It can take up to one year to get the plan confirmed by the court.