Filing
chapter 11 can be a difficult, confusing, and frustrating
process. The common belief that a business is lost
after filing Chapter 11 is false. The difference between
filing Chapter 11 and Chapter 7 exists between the
way they solve the problem of debt. With Chapter 7
a company liquefies its assets and pays off debt, but
with Chapter 11 the company keeps assets and reorganizes
the debt in a more manageable way. So, many companies
bounce back after filing Chapter 11.
Can a business come back after filing Chapter 11? Sure. Any business
with the right goals and approach can come back from the depths of
debt. The process of chapter 11 provides a way to ease out of certain
debts and return to a profitable company. Chapter 11 involves the
courts. They view the company as having a certain path, if they stray
from that path, then they may lose their business, but if they stay
within its boundaries, then they will survive.
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Dana files for bankruptcy protection. Toledo, OH-based Dana Corp. has filed for Chapter 11 bankruptcy protection, giving the automotive supplier a $1.45 billion “debtor in possession” line of credit.
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