Chapter 7 and 11 – The Bankruptcy for Businesses
In the Bankruptcy Code, you will find that there are 3 different chapters that deal with the types of bankruptcy that would be applicable for businesses to file in the bankruptcy court. Among these three, Chapter 7 and Chapter 11 are the most applied bankruptcy provisions whenever businesses would choose to file for bankruptcy. With a Chapter 7 bankruptcy, the goal is to pay off creditors using business assets. Chapter 11 on the other hand is opted for if a business would go for reorganization to better handle assets and to find a means to pay off creditors. With these business bankruptcy laws around, businesses could always find a good solution to solve debts.
