Chapter 7 vs Chapter 11 Bankruptcy. What’s the difference?

Questions to answer before you file that lawsuit
Are you struggling financially in your business? You may have a couple bankruptcy options available to you.

Chapter 7 is usually reserved for those companies that are struggling so badly they cannot stay afloat. The business is dissolved, assets are liquidated, and any proceeds from the sale are distributed between shareholders and creditors.

Chapter 11 bankruptcy, on the other hand, is filed when the business owner wants to save his company. This solution is referred to as reorganization bankruptcy. The business is allowed to remain open while completing the bankruptcy process.

Learn more about business bankruptcy here.