Bankruptcy Code allow businesses to find ways to reduce their debt and restructure their operations without having to be shut down and liquidated to satisfy debts - instead of closing their doors, businesses can stay open, pay their employees, and take in revenue while developing a budget and a repayment plan for creditors (subject to the approval of the bankruptcy court). Bankruptcy Is Not Synonymous with FailureĪlthough a corporate bankruptcy filing often indicates that a business is in a perilous financial condition, it doesn't necessarily sound the death knell for that business.
