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What are options other than Chapter 7 or Chapter 11 for businesses?

In many cases, Chapter 11 bankruptcy merely delays the inevitable; reorganization is not always the best solution. In fact, before filing for Chapter 11, business owners should strongly consider simply selling off the business and its assets, because - at this point - the owner may be able to get a better price for the business and its assets, the owner can control which creditors actually get paid, an owner can likely end the financial distress sooner than can a bankruptcy court, and certain intellectual property can be transferred. However, selling off a business and its assets will not necessarily stop creditors from trying to collect (because there is no automatic stay provision) and the owner will not be able to continue receiving moneys from the business to pay off debts.