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"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.






The Law Offices of Omar Zambrano has helped thousands of people and them businesses in the past to get out of 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






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