Chapter 7 vs. Chapter 11 Bankruptcy

There are two types of bankruptcies that businesses can file for, Chapter 7 and Chapter 11. Both have their own advantages and disadvantages, so it's important to understand the difference between the two before making a decision.

Chapter 7 bankruptcy is also known as liquidation bankruptcy. This is because in a Chapter 7 bankruptcy, the business' assets are sold off in order to pay back creditors. The business is then dissolved and no longer exists. However, this type of bankruptcy does not allow the business to reorganize or restructure its debts.

Chapter 11 bankruptcy, on the other hand, is known as reorganization bankruptcy. In a Chapter 11 bankruptcy, the business is able to keep operating while it restructures its debts. This means that the business can still exist after the bankruptcy process is complete.

The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of the debt and start over.

Our goal is to help you find a fresh start FAST!

Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706