When a business is deciding whether to go bankrupt or not, there are usually three chapters of bankruptcy that they would be considering. The first is Chapter 7 bankruptcy, a fairly standard form of bankruptcy whether you are a business or an individual. In Chapter 7, liquidation is the process by which the bankrupt entity fulfills its debts, while also clearing out other debts through discharge. For a business, Chapter 7 usually means the end. It is also a good option for companies that don't have significant assets.
Chapter 13 bankruptcy, meanwhile, is usually meant for individuals and not businesses. But a business can be an extension of an individual via a sole proprietorship. In this case, Chapter 13 can be used by a business. This form of bankruptcy will see the business restructure its debts and come up with a payment plan to satisfy creditors.