Small Business Bankruptcy

Small business bankruptcy occurs when a business cannot meet its financial obligations, leading to legal proceedings to resolve its debts. There are different types of bankruptcy, such as Chapter 7, which involves liquidating assets to pay creditors, and Chapter 11, which allows businesses to reorganize and continue operations while repaying debts. Filing for bankruptcy can provide relief from immediate financial pressure but can also affect credit ratings and future business operations. It's a legal way to manage or eliminate debt, offering a fresh start for struggling businesses while balancing the interests of creditors.