"Declaring bankruptcy might seem like a closing sentence, but in reality, it can be a strategic move toward recovery."
"In chapter 7 bankruptcy, businesses shutter their doors, sell off their assets, and are absolved of any outstanding debts."
"Chapter 11 bankruptcy allows businesses to remain operational while working out a debt repayment plan with creditors."
"The chief appeal of declaring bankruptcy is that it immediately enacts a wave of financial protection over restaurants."
Declaring bankruptcy can serve as a strategic recovery move for restaurants. There are two main types of bankruptcy: Chapter 7 and Chapter 11. Chapter 7 results in business closure and asset liquidation, absolving outstanding debts. Chapter 11 allows restaurants to continue operating while negotiating a repayment plan with creditors. The primary benefit of bankruptcy declaration includes immediate financial protection, halting collections and lawsuits, while enabling restaurants to assess their assets for a structured debt resolution process.
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