How does a Chapter 11 bankruptcy affect my business?

A Chapter 11 bankruptcy can have a significant impact on businesses in New York. This form of bankruptcy allows for a business to remain in operation while reorganizing its debts. During this process, the business will work with a court-appointed trustee to create a plan that repays creditors over a period of time. Although the business remains open, it must abide by certain restrictions. For example, the business must get approval from the court before entering into certain contracts or making major business decisions, such as closing a location. The business may also have to cut costs and liquidate assets to stay afloat and pay off creditors. During a Chapter 11 bankruptcy, the business will also have to attend court hearings. The court will review the reorganization plan and decide whether to approve it. This process can be expensive, as the business will have to pay filing fees and legal fees. Overall, a Chapter 11 bankruptcy can be difficult and time-consuming for a business in New York. It is important that businesses carefully consider their options before making the decision to file. With the help of an experienced attorney, however, businesses can restructure their debts and emerge from bankruptcy with a fresh start.

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How does a Chapter 11 bankruptcy affect my business?

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