Business Bankruptcy: Frequently Asked Questions

What 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…

What happens to you if your business files bankruptcy?

Whether or not your business bankruptcy will affect you personally depends on the type of bankruptcy you file. If you file chapter 7, the shareholders of your corporation (including you) could lose your stock values if the stock shares are liquidated with the corporation assets. If you choose to file chapter 13 bankruptcy, the shares…