Bankruptcy: What You Should Know

Filed in archive Trends on March 11, 2009

In case you missed it, BusinessWeek published a brief primer last week on what may become a necessary evil for more and more small business: bankruptcy.

The piece looks at filing for Chapter 11 protection.

No one wants to learn about bankruptcy the hard way-which is why, with the economy struggling, it's critical to understand how it works. In the third quarter of 2008, Chapter 11 filings numbered 2,485, up 94% from the same quarter in 2007, according to the American Bankruptcy Institute in Alexandria, Va.

If you're faced with insolvency, Chapter 11 may let you reorganize your company while shielding you from creditors and discharging unsustainable debt.

The piece provides a few points of contrast between Chapter 11 and chapter 7. It looks at the path through bankruptcy back to solvency. It's a good educational piece to be aware of...


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