Bankruptcy bankruptcy law liquidate liquidating liquidation

Which liquidation option works best for you depends on the size of your business, the amount of your debts (business and personal), and the type of business you operate.If the value of your business assets is almost enough to pay your debts, you might just be able to sell your assets and settle your debts yourself, without bankruptcy, by doing a work out—a process that's cheaper and less public than bankruptcy.“Winding Up” The main reason to file a Chapter 7 bankruptcy for a business is to allow a Chapter 7 bankruptcy trustee to take control over the company and formally dissolve it.When the company files Chapter 7 bankruptcy, the officers and shareholders are no longer in control over the business, and there is no longer an opportunity to continue the business or sell it in whole or part to someone else.

As a condition of obtaining a discharge of eligible debts in a Chapter 7 bankruptcy petition, you must agree to the "liquidation," or sale, of nonexempt assets to generate cash.Automatic Stay For many failing businesses, the main advantage to a Chapter 7 bankruptcy is the automatic stay.This protection will temporarily halt any collection process or legal action, including a repossession, lawsuit, eviction, or foreclosure.The bankruptcy case stops a “money grab” at business assets and allows the company to liquidate assets and pay creditors in an orderly and often beneficial manner.One Forum Because the automatic stay stops any lawsuits, company officers are no longer required to participate in the suit, including appearing at hearings or depositions.

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