I read an article in the New York Times that I thought made some pretty good points. It was based on an interview with a turnaround consultant that specialized in working for small to medium companies. Here are some of the major points of the article, Adviser to Businesses Laments Changes to Bankruptcy Law, and my comments:
In general I disagree with the premise of the person interviewed for the article. He believes that the reduction in time allowed to stretch out a bankruptcy has been detrimental to the longevity and business continuity of a number of small and medium businesses. Previously bankruptcies could drag on for 3,4,5 or even 7 years but now the maximum time typically does not exceed three years. This obviously allows much less time for reorganizing.
Regarding bankruptcy, if bankruptcy looks like it is your only truly viable choice, then communication will help you create a bankruptcy plan that gets approved quickly by the majority of your creditors. It will help you meet all the deadlines for the various deliverables, increasing the likelihood that your company emerges from Chapter 11 intact.