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Is your business beginning to struggle? If so, you’ll need to decide whether or not to close down. One option you may need to contemplate is the possibility of filing for bankruptcy. When should you seriously consider this option, and is it the best course of action for your business? First, you should understand the different types of business bankruptcy that exist.
Chapter 7 Bankruptcy
This type of bankruptcy requires you to undergo liquidation. In other words, you’ll sell off all the major assets of the business before ultimately closing down. Once filed, the business will no longer exist and the company will cease operations.
First, all of your employees will be dismissed. Next, a court-appointed trustee will take charge of liquidating the rest of the company. The liquidated assets will pay off existing debts, to the extent that they can. This is the most common type of bankru… Read More