Here are the factors for determining whether a business lease is treated as a true lease in bankruptcy or rather as a secured purchase.
A business leases may not be a true lease but rather recharacterized as a secured purchase, giving you significant power over the creditor.
With business leases you have the same options in bankruptcy as with consumer leases: to "assume" or "reject" the lease.
Beyond considering whether your assets have net value on the date of filing, do they generate rents, profits, or proceeds afterwards?
Chapter 11 is a powerful way to address a business debt crisis, but because of its detriments must be used extremely selectively.
If you have a business that you need to continue of operate, choosing the right form of bankruptcy involves risks and opportunities.
With a recently closed or about to close failing business, you often can't and seldom need to file a bankruptcy for the business itself.
If you've decided to close down your business, or would if you could avoid its debts, or had a way to pay its taxes, consider bankruptcy.
Give the bankruptcy trustee the headache of dealing with your final business assets
Protect your business assets immediately with the "automatic stay" and permanently with property exemptions.