When your business started facing financial struggles, you may not have felt an immediate sense of panic. Most companies face losses and are able to get back on track by utilizing the right business strategies. However, now that your company's financial situation has gotten increasingly worse, you may worry that recovery is no longer an option and that you may have to close down.

Before you start the process of dissolving your business, you may wish to consider certain efforts that may help your company financially while also giving you the opportunity to keep the doors open. Filing for Chapter 11 bankruptcy helps many businesses deal with creditors, lenders and other factors relating to financial issues. However, you may think that this route will cause more harm than good.

The United States Bankruptcy Code, which organizes types of bankruptcy into different chapters, offers debt relief to both individuals and corporate entities. If you are individual in need of debt relief, the "liquidation" of non-exempt property facilitate by chapter 7 bankruptcy may be the most sensible option. If it is your corporate entity, whether a corporation, partnership, or other entity, rather than yourself as an individual separate from your business, chapter 11 bankruptcy may be the more prudent choice - especially if it is your intention to remain in business following the bankruptcy process. In determining which chapter of bankruptcy is most appropriate and beneficial, whether as in individual or corporate entity, consult with an experienced San Jose bankruptcy attorney.