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

Yes, you can keep your business open during a Chapter 11 bankruptcy filing in South Dakota. This type of bankruptcy allows individuals and businesses to reorganize their debt, while still operating their business, while limiting the interference of creditors. The first step in a Chapter 11 bankruptcy is the filing of a petition with the federal bankruptcy court. Once the petition is filed, an automatic stay is created, preventing creditors from taking action against you or your business. This provides temporary relief from collection activities, giving you and your business the breathing room you need to create and get approved by the court a reorganization plan. The plan you file with the court outlines how you will pay your debts. This plan replaced all of your pre-petition debts with a payment plan that is more manageable and affordable for you. The court may also order some creditors to receive reduced payments, and some debts may be completely discharged. Once the court approves your reorganization plan, you can keep your business open and continue to operate. However, you will need to make monthly payments according to the terms of your plan, or risk defaulting on your bankruptcy case. If you are considering Chapter 11 bankruptcy, it is important to consult with a qualified bankruptcy attorney in South Dakota to understand the implications and the process. With the help of a professional, you can make the best decision for your business and your financial future.

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