Chapter 7: Bankruptcy Liquidation - This form dissolves the business by selling its assets to pay off all or a portion of its debts. Chapter 7 bankruptcy is typically utilized by businesses with unresolvable cash flow or financial issues, as well as by small, sole proprietorships.
This form of bankruptcy involves a period of structural and financial reorganization with the objective of regaining profitability. In this form of corporate bankruptcy, operations are typically streamlined to reduce costs, some assets can be liquidated to satisfy creditors, and other changes are possible. Chapter 11 bankruptcies are typically utilized by large and medium-sized businesses.
This specialized form of business bankruptcy is designed for family agricultural and fishing operations and is utilized less frequently than Chapter 7 and Chapter 11 bankruptcy.
Chapter 13: Wage-Earner Bankruptcy-This form of bankruptcy is frequently used by individuals, but it can also be used by sole proprietorships. Chapter 13 bankruptcy enables the business owner to keep their assets by allowing them to repay their obligations over a set period of time (typically three to five years).
Consult with local bankruptcy attorneys before making any final decisions if you're considering filing for corporate bankruptcy. These professionals will be able to provide you with expert guidance regarding your company's future. Contact a local bankruptcy attorney immediately.""
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