Swim & Trim Fitness Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business.To accomplish this goal,Swim & Trim should file a petition in bankruptcy for relief through

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The best choice for Swim & Trim Fitness Corporation is to file for relief through a reorganization. A reorganization bankruptcy, also known as Chapter 11, allows businesses to continue operating while developing a plan to pay off debts over time. This would enable the company to pay a portion of its debts and be discharged of the remainder while still staying in business. Liquidation bankruptcy (Chapter 7) involves selling off assets to pay off creditors and would require Swim & Trim to cease operations. A repayment plan (Chapter 13) is only available to individuals, not corporations. A family-farmer bankruptcy plan (Chapter 12) is only applicable to family farmers and fishers with specific requirements that do not apply to Swim & Trim Fitness Corporation.

Swim & Trim Fitness Corporation Wants to Formulate a Plan