Final answer:
Andy's business should consider Chapter 11 bankruptcy, which is designed to allow companies to restructure debts and remain operational. This is different from a liquidation bankruptcy, which typically results in business closure.
Step-by-step explanation:
If Andy's business is struggling to pay its debts but wishes to continue operating, they may consider filing for Chapter 11 bankruptcy. This type of bankruptcy, often referred to as reorganization bankruptcy, allows a company to restructure its debts and modify payment terms with creditors while continuing to run the business. By doing so, the business is given a chance to return to profitability under a new business plan and debt repayment strategy. This approach contrasts with Chapter 7 bankruptcy, which entails liquidating assets to pay off creditors and typically results in the business ceasing operations.
Companies opt for Chapter 11 when they believe there is a viable path forward despite their current financial woes. This was seen in the case of Detroit, which filed for bankruptcy due to overwhelming debt. Detroit's bankruptcy gave the city time to negotiate with creditors and unions to restructure its debts, and eventually it emerged from bankruptcy with a plan to rebuild economically.