Business Bankruptcy Options

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Bankruptcy and other Legal topics.

What options exist for corporate bankruptcy?

Business Bankruptcy Options

There are basically two types of business bankruptcy:

Chapter 7 Bankruptcy, or liquidation, meaning a sale of assets to satisfy creditors
Chapter 11 Bankruptcy, or reorganization, allowing a business to reorganize its debt structure without shutting the doors to the business.

The amount of debt that a company is required to pay will be based on the value of the business at the time of filing, the ability to pay, and willingness of creditors to accept delayed payments, expecting the business to eventually return to profitability.



Nobody has commented on this tip yet. Be the first.


URL: (optional)


Not finding the advice and tips you need on this Legal Tip Site? Request a Tip Now!

Guru Spotlight
Joe Wallace