Exactly just How bankruptcy impacts business is determined by the kind of bankruptcy filed.
Organizations classified as corporations, partnerships, or LLCs can register Chapter 11 bankruptcy. Chapter 11 allows for debt restructuring, even though the continuing company remains available. Like in Chapter 7 and Chapter 13, a automated stay activates just as your bankruptcy duration starts. Within an automated stay, creditors cannot attempt to gather cash or other assets away from you.
In those times, you use your attorney to restructure your financial situation and develop an idea to ensure you get your company straight back on the right track. (more…)