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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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 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. Read more here…