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

Yes, you may keep your business open during a liquidating plan in a Chapter 11 bankruptcy in California. This type of bankruptcy is also known as a reorganization bankruptcy. It is designed to help businesses remain operational and profitable, while providing them with a way to reorganize their debt obligations. During the bankruptcy filing, the court will approve a plan for debt repayment and reorganization, allowing the business to remain open. The creditors involved in the case must sign off on the plan before the court can accept it. Under the plan, the business owner will have to pay creditors a portion of the debt owed, with the remainder of the debt being discharged. The new payment plan must be approved by the court and the creditors involved in the case. The business owner will also be required to provide financial information to the court and creditors to ensure that the business is still operational and has the ability to pay the debt obligations under the plan. Although businesses may remain open in a Chapter 11 bankruptcy, they should be aware that they may be required to make significant changes to the way they do business in order to comply with the new debt obligations. If the plan fails to get approved, the business may ultimately be forced to close.

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