Filing the Petition: The business files a bankruptcy petition in court. Automatic Stay: An automatic stay is imposed, halting all collection activities against the business. Asset Evaluation: The court evaluates the business’s assets to determine their value. Debt Repayment: In Chapter 7, assets are sold to repay creditors. In Chapter 11, a restructuring plan is created. Discharge of Debts: Certain debts may be forgiven, allowing the business a fresh start.