Bankruptcy is a wonderful tool a very powerful strategy, a compassionate law. Lose your debt but lose your business as well. Yes there is a chapter 11 reorganization option, but this is so fraught with danger and petitioners are so unlikely to survive and will most often be converted top a 7 and liquidated, and so expensive that for all practical purposes it is non existent as a viable consideration for a small business.
Thus yes you may lose your debts but you also lose your business and many other assets, that's the trade off. In many instances a viable productive second chance to start over, again, anew. That is good.
However if one takes a hard look at a better option, you may agree that debt workout, which reduces your debts considerably to affordable levels without your business being completely liquidated may be a better option.
Consider it, it is a difficult road to travel, it requires expert navigation and leadership and it does cost money, but in the end the business survives and yes much of your debt is gone...
You can always default to a bankruptcy if all else fails, but why not try all else before you default. All else is a debt workout strategy.
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