Filing A Business Bankruptcy – How Easy Or Difficult Is It?

The rules and procedure for business bankruptcy has been described in chapter 11. As compared to other chapters of the bankruptcy code, the provisions here are completely different. In chapter 7, all assets and properties (except the ones that come under exemptions) of the person/business getting bankrupt is liquidated in order to pay off the debts. Nothing of that sort happens when a business goes bankrupt under chapter 11. This chapter allows the debtor to continue with the ownership of the organization and operate it as usual, but while following a re-structured repayment plan with the creditors.