"Chapter 7 Vs Chapter 11"

There are two types of bankruptcy that businesses can file for, Chapter 7 and Chapter 11. Both have their own advantages and disadvantages, so it's important to understand the key differences before deciding which one to file for. Chapter 7 is known as liquidation bankruptcy, meaning that the business' assets are sold off in order to pay off creditors. The business is then dissolved and no longer exists. This type of bankruptcy is typically used by businesses that are unable to pay their debts and don't have the means to continue operating. Chapter 11 is known as reorganization bankruptcy, meaning that the business' assets are not sold off but instead used to reorganize the business and pay off creditors over time. This type of bankruptcy allows businesses to stay open and operating while they repay their debts. It's typically used by businesses that have a good chance of eventually becoming profitable again.