To begin, your financial situation needs to be fully evaluated and the best bankruptcy type chosen. This process is usually aided by the use of a bankruptcy lawyer and the bankruptcy lawyer will continue to be helpful throughout the filing process. Next a list of all current debts and assets needs to be compiled to be presented to the court in addition to a “statement of financial affairs” which outlines current debts, income, and ability to repay debts. At the time of filing, the fees which correspond to your selected bankruptcy type will also be due.
Posts tagged as:
Chapter 11
When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.
In Chapter 7 the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.