If you own a business that’s in financial trouble and headed toward bankruptcy, you need to decide whether to file Chapter 11 or Chapter 7. Pursing a Chapter 7 will mean the end of your business and the liquidation of assets, but the process will be over relatively quickly and efficiently. Chapter 11 allows you to restructure and keep your business open, but it is a much longer and more complex process. And it isn’t always successful.
People continue to struggle with student loan debt. The only form of debt that causes more hardship is mortgage debt. Student loans beat out credit card debt and surpass health care expenses. Unfortunately, unlike credit card debt and health care expenses student loan debt is not as easy to manage.
A common term associated with filing Chapter 7 bankruptcy is "liquidation." Many California business owners understand the term well. After all, businesses do not have to file bankruptcy to liquidate their assets. However, it can be difficult to know where to start when it comes to filing bankruptcy and proceeding with liquidation.
When a business is facing overwhelming debt and other major financial issues, a big decision comes before the owner. This is the decision of whether to try to keep the company up and running or bring the business to an end.
As a small business owner who has insurmountable debt, you are considering the drastic step of filing bankruptcy. You have done some research online, and Chapter 7 seems the best fit for your particular circumstances. Of course, you have many questions. The biggest is this: Will you be able to keep your business after you declare Chapter 7 bankruptcy?
It doesn't take much for a person to go from barely getting by to being buried in debt. If you are in this situation, know that you are not alone. In fact, millions of people in this country carry some amount of debt because of events like job loss, unexpected medical bills, massive student loan obligations and even divorce.