Are There Any Benefits of Filing Business Bankruptcy?

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There are many benefits of filing business bankruptcy. A few include: Asset Protection. Once your bankruptcy petition is filed, your creditors are prohibited from contacting you and must halt all collection efforts. Your assets are protected from seizure, and business equipment and vehicles cannot be repossessed. Debt Reorganization.. You can reorganize your business debts, present a more feasible repayment plan to your creditors, and bring your accounts current over time. This solution is ideal for small and large corporations that are in serious financial trouble. Stress Relief. Imagine being able to operate your business in peace, without debt collectors nagging …

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

FAQ Personal and Corporate Bankruptcy

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.