Consider alternatives to business bankruptcy, including seeking advice from a credit counselor or financial advisor or getting a debt consolidation loans. Small business bankruptcies are on the rise, seeing a nearly 30 percent rise in Chapter 11 bankruptcy — which allows the company to reorganize its debts and restructure the company — filings over a 12-month period, according to the American Bankruptcy Institute. Thankfully, small businesses aren’t seeing the same rise in Chapter 7 bankruptcy, which is the type that liquidates assets to pay off business debts. If you’re considering filing for a small business bankruptcy, consider which type will help your business the most. You should also consider alternatives that may keep you from filing for bankruptcy in the first place. The small business loan delinquency rate is 0.95 percent in Q3 for 2023. Over a 12-month period ending on September 30, 2023, 17,051 business bankruptcy cases were started.