Bankruptcy

Bankruptcy - Chapter 7 is complete; Chapter 11 is reorganization.

Reorganization lets the debtor stay in business and restructure the debt.

It is usually restructured into a payment schedule.

Since you can only file for bankruptcy every 7 years; often, recent bankruptcy fillers will have plenty of companies willing to extend their credit.

If you are filing Chapter 11, convince your creditors that the bankruptcy judge feels that it is more important (due to your contribution to the community) for you to stay in business than it is for you to merely pay all of your accumulated debt in full.

With that in mind, when you approach your creditors, start at 50% of the amount you owe as a take it or leave it and negotiate a settlement.

If a creditor is reluctant (they always will be) tell them you are more than happy to let this particular judge decide how much they should be paid (this should scare them because you just told them the judge prefers you stay a float).