Can I continue to operate my business during a Chapter 11 bankruptcy?

Yes, you can continue to operate your business during a Chapter 11 bankruptcy in Virginia. Chapter 11 bankruptcy law allows debtors to maintain control of their business and its assets while working to restructure their debt with their creditors. This allows businesses to remain open and continue to operate while they reorganize their debt payments. Under Chapter 11 bankruptcy, debtors receive an "automatic stay”, which stops creditors from taking any action against them or their property. This means creditors cannot initiate or continue any lawsuits, wage garnishments, or other collection activity. However, during this time debtors must submit a plan to court to pay back the debt. This plan details how much and when they will pay creditors back. The court will assess the debtor’s plan and determine if it is a viable solution. If the court approves the plan, it will be put into effect and creditors will begin to receive payments. In some cases, creditors may ask for a Chapter 11 trustee to be appointed. This trustee will have control over the debtor’s financial affairs and will decide which creditors receive payment and when. Overall, Chapter 11 bankruptcy law in Virginia does allow businesses to remain open and operational while restructuring their debt. This is beneficial for both creditors and businesses, as it allows debtors to reorganize their finances and creditors to receive payment on their debt.

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Can I continue to operate my business during a Chapter 11 bankruptcy?

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