Question

Swim & Trim Fitness Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business. To accomplish this goal, Swim & Trim should file a petition in bankruptcy for relief through

A) Chapter 7
B) Chapter 11
C) Chapter 13
D) Chapter 9

Answer 1

Firms file for bankruptcy and continue operating to reorganize debts and stay in business.

Step-by-step explanation:

When a firm files for bankruptcy, it is typically seeking a way to reorganize its debts and continue operating. This is often done through Chapter 11 bankruptcy, which allows the company to create a plan to pay off its debts over time while still remaining in business. By doing so, the company can potentially save jobs, retain customers, and work towards financial stability.