Different paths.
Different legal tools.
Compare objectives, control, creditor protection, and the limits of each approach. Evaluate cost and timing against the actual transaction and available funding.
Which paths deserve a closer look?
Tell us about your goals, cash runway, creditors, and operating constraints. Get a tailored research shortlist, the tradeoffs that matter, and a preparation checklist.
- About 4 minutes
- Business-focused questions
- Personalized next steps
Research guidance; specialist review required.
Scroll horizontally to compare all five columns →
| Approach | Primary objective | Control & administration | Collection protection | Key limitation |
|---|---|---|---|---|
| Assignment for the Benefit of Creditors | Sell assets or a going concern; distribute value | Assignee; court involvement varies by state | No federal automatic stay; state rules may apply | Liens, contracts, funding, and local procedure can control feasibility. |
| Business Chapter 7 | Liquidate a bankruptcy estate | Chapter 7 trustee | § 362 stay, subject to limits and relief | Entities receive no Chapter 7 discharge; owners’ guarantees remain separate. |
| Chapter 11 / Subchapter V | Reorganize or conduct a supervised sale | Usually debtor in possession; oversight varies | § 362 stay, subject to limits and relief | Needs funding and a viable statutory exit; Subchapter V eligibility is specific. |
| Negotiated workout | Preserve a viable company | Management, subject to negotiated terms | Only agreed or otherwise applicable restraints | Needs creditor cooperation and a funded operating plan. |
| Orderly dissolution | Finish affairs and close the entity | Authorized managers, liquidator, or other fiduciary | No stay merely from a dissolution filing | Must address creditors; does not erase debts or guarantees. |
| Receivership | Preserve, operate, or sell designated property | Court-appointed receiver | As provided by law and the court’s order | Powers and costs depend on the statute and appointment. |
Build the decision file
Business assets, liens & cash collateral
Ownership, attachment, perfection, priority, and the use of encumbered cash during distress.
Contracts & operationsBusiness guarantees & third-party exposure
How company debt, collateral, guarantees, and releases interact in a business workout or liquidation.
Assets & salesDistressed business & Section 363 sales
Sale structure, marketing, lien treatment, contract transfers, and execution risk in a distressed transaction.
Sources & authority
Read the governing text and agency guidance. Check effective dates and subsequent changes.