It’s a simple fact that small businesses fail all the time and for many different reasons, some that are out of the owner’s control. If you’re falling deeper and deeper into debt by keeping your company open, it may actually be best to shut it down and cut your losses.When it comes down to closing a debt-laden business, bankruptcy is one option that will help you to stop the bleeding money and get a fresh start. However, filing for certain types of bankruptcy may not be an available option for your business entity or the best way to go for your personal situation. There are multiple types of bankruptcy filings, each having its own benefits and drawbacks.