Also known as a liquidation bankruptcy, under Chapter 7, a court trustee determines whether you have assets worth selling off to your creditors. (What counts as an asset varies by state, but most Chapter 7 cases end up being “no asset,” meaning nothing is liquidated.) To qualify for Cha...
Depending on your business's legal structure and assets, you may be eligible to file for either aChapter 7,Chapter 11orChapter 13bankruptcy. Here is a basic overview of each type: Chapter 7bankruptcy is for businesses that intend to shut down and liquidate their assets to pay off debts. Ch...
Chapter 11, entitled Reorganization, ordinarily is used by commercial enterprises that desire to continue operating a business and repay creditors concurrently through a court-approved plan of reorganization. The chapter 11 debtor usually has the exclusive right to file a plan of reorganization for the...
Chapter 7 Bankruptcy: Also known as liquidation bankruptcy, Chapter 7 bankruptcy involves the liquidation of non-exempt assets to repay creditors. It is designed for individuals with limited income or resources who are unable to repay their debts. In Chapter 7 bankruptcy, a court-appointed trustee...
Public companies tend to file under Chapter 11 rather than Chapter 7 because it allows them to continue to run their businesses and participate in the bankruptcy process. Rather than simply turning over its assets to a trustee for liquidation, as it would have to in Chapter 7, a company ente...
The legal process of bankruptcy likeChapter 7 Bankruptcyor Chapter 13 Bankruptcy allows individuals and companies to start anew. You can file for bankruptcy in any court in the United States to get a fresh financial start and discharge your debts. So, let's talk about what happens after bankru...
According to LegalZoom, you can file forChapter 7 bankruptcy, which will require you to sell all LLC assets to creditors. Afterward, any remaining debts disappear, and your LLC business no longer exists. However, none of your personal assets would be touched. ...
Bankruptcy is often referred to as a last resort forgetting out of debt, and it can have severe consequences, remaining on your credit report for up to 10 years.7Even so, it is the route many Americans ultimately choose. Most individuals who file for bankruptcy use either Chapter 7 or Chap...
Eventually, many are forced to file bankruptcy anyway. And this is never a bad thing. A Fresh Start The U.S. Bankruptcy Code was designed to provide individuals with a fresh start for their financial situation. Filing Chapter 7 means a discharge or wiping out of debts you do not wan...
. Typically, someone who doesn't have a great deal of income left at the end of each month and only nominal assets would choose to file forChapter 7 bankruptcy. Someone who earns a significant income or who wants to protect valuable property may prefer to file forChapter 13 bankruptcy....