Can I keep my business open during a Chapter 11 bankruptcy?

Yes, it is possible to keep your business open during a Chapter 11 bankruptcy in Michigan. Depending on the type of business and the nature of the bankruptcy filing, it may be possible to use a Chapter 11 bankruptcy to reorganize the business and its operations in order to remain open. If the company is an LLC, corporation, or limited partnership, the business can continue to operate during the filing and remain open to customers. However, creditors must be paid according to the repayment plan set forth in the court-supervised reorganization. The court must approve all contracts and agreements involving the company post-filing. Some businesses may also take advantage of a type of Chapter 11 bankruptcy known as a “Debtor in Possession” or “DIP”. Under this option, the debtor can continue to operate the business without court approval, but must still follow the court-approved plan of reorganization. It is important to note, however, that Chapter 11 bankruptcy is a complex legal matter and it is important to contact an attorney to determine which option best fits your specific situation. An attorney can review your case and help you decide whether to keep the business open during a Chapter 11 bankruptcy in Michigan.

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