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

Yes, it is possible to keep your business open during a liquidating plan in a Chapter 11 bankruptcy in Minnesota. Chapter 11 bankruptcy law in Minnesota allows businesses to reorganize or liquidate their assets in a plan known as a formal "liquidating plan." If you decide to liquidate your business assets through a Chapter 11, the court will evaluate your plan to ensure all creditors and any other affected parties are treated fairly. Once the court approves the plan, the bankruptcy trustee will oversee the liquidating plan. During this time, you can choose to keep your business open. This is known as the "operating period." During the operating period, business owners can continue to operate their businesses if allowed to do so by the court. During the operating period, the business must still make its debt payments. It must also abide by the terms of the agreement with creditors. Additionally, any income earned during the operating period must be used to pay creditors. The bankruptcy court may also impose additional terms and conditions on the business to ensure that all creditors are treated fairly. The length of the operating period and whether a business can keep its doors open depends on the specifics of the liquidating plan, how the court rules, and the agreement reached with creditors. To ensure that your business can remain open during a Chapter 11 bankruptcy, consult with an experienced bankruptcy lawyer who can help guide you through the entire process.

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