Not doom and gloom if used properly a bankruptcy filing is truly a competitive advantage. A bankruptcy can give a business breathing room to reorganize and create a plan to move forward to profitability, or it can stop the bleeding that can lead to seizure of assets.The ability to temporarily suspend your debt-service obligations, pay only a portion of your current debts and dismiss contracts you’ve signed can help you be more efficient than your competitors, which must meet all of their obligations.