It is easy to Google any term like "Chapter 11 Bankruptcy" and find tons of informative articles. Asking if a business " can go on" is sort of like asking if a bad marriage can be fixed...the question becomes whether or not one would want to.
Protection from creditors is the main goal of any bankruptcy filing, as I understand it. It stops a lot of collection tactics in their tracks. If the business can re- organize and move forward with this weight hanging on its reputation, the filing can buy time and forgiveness of debts, or structured repayments under terms different from the original contract with the providers of goods and services.
We have all seen examples of business bankruptcies where the entity just opened shortly thereafter under a new name and kept going along as if not much had happened.
