Business Bankruptcy: Frequently Asked Questions

questionscufflinksWhat is the difference between chapter 7 and chapter 11 bankruptcy?

Businesses usually have a couple of choices when it comes to filing bankruptcy.

Chapter 7 bankruptcy is reserved for companies that are struggling so badly they want to throw in the towel.

These companies are liquidated, and all assets (and proceeds from assets) are distributed between shareholders and creditors.

Chapter 11, on the other hand, is filed when the company wishes to reorganize its debts and get a fresh start. Under this type of bankruptcy, the company is allowed to remain in business during the bankruptcy process.

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Glenn A. Brown, Esq.

Attorney Glenn Brown and the Real World Law team provides legal protection to homeowners and businesses in eminent domain and condemnation actions, commercial and residential real estate closings, and other litigation matters. If you're a property owner in need of legal protection, contact our law firm. We've two convenient office locations, serving communities in and around Upper Darby, PA and Wilmington, DE.

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