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

Yes, in most cases, you can keep your business open during a Chapter 11 bankruptcy in Virginia. A Chapter 11 bankruptcy enables businesses experiencing financial hardship to restructure their debts without closing their doors, allowing them to remain open during the process. This allows businesses to continue to operate while they take steps to pay off their debts and regain their financial footing. During the Chapter 11 bankruptcy process, the debtor, or business, is referred to as the "debtor-in-possession." The debtor-in-possession continues to operate the business, but their operations are subject to court supervision and the review of creditors. During the process, the debtor-in-possession must file a plan of reorganization, detailing how they will pay off and manage their debts. In addition, with court approval, the debtor-in-possession may enter into contracts, incur debts, and acquire property to help restructure their finances and remain open. This allows them to continue to operate their business and pay off their debts over a period of time. In conclusion, with the guidance of a skilled bankruptcy lawyer, a business in Virginia can keep its doors open during a Chapter 11 bankruptcy. This allows them to continue to make a profit, manage their finances, and successfully pay off their debts without having to close their business.

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