Business Bankruptcy:Business bankruptcy is the filing under Chapter 7 or Chapter 11 by companies and firms. In a business or corporate bankruptcy, the court appoints a trustee after you file the bankruptcy petition. In case of chapter 7, all the business activities of a company come to an end. The assets and the liabilities are calculated, by selling the assets. The money obtained from such a sale is distributed to the creditors in an orderly manner. A debtor company can file under chapter 11, for the reorganization of the company. The company works out a plan along with the creditors, stockholders, and unsecured creditors to come out of its debt, so that the future earnings of the company will be paid to the creditors. The trustee is appointed who conducts meeting with the creditors, stockholders, and unsecured creditors to develop a plan. The debtor company has to prepare a disclosure statement. The court will confirm the plan after considering the aspects of the plan and the disclosure statement. The future earnings of the company will be distributed to the creditors in an orderly manner. Consult an experienced Bankruptcy attorney before filing a bankruptcy petition in the court. |
