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hi I'm Jeff Wagner president WM law Kansas City's premier bankruptcy law firm we often consult with clients who owned a small business in distress if the business is not profitable chapter 11 reorganization may allow the business to start fresh by reorganizing its debts if the owner doesn't want to continue the business though the owner will cease its business operations it's very rare to file a chapter 7 bankruptcy case for a business that's being closed that would only happen if the business has significant assets that are not pledged as collateral for lien to a secured creditor again that's pretty rare the real question is whether the business should be formally dissolved generally we recommend leaving the corporate entity intact for five years after the business stops operating because if someone has a claim against the company you want there to be a company for them to sue rather than naming the owner personally as someone who may ha

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