Corporate Bankruptcy

Chapter 7

Similar to a consumer bankruptcy, a corporate Chapter 7 bankruptcy can eliminate all of a corporation's debts by a complete liquidation of assets.

Chapter 11

Chapter 11 is a reorganization proceeding, typically for corporations or partnerships. Individuals, especially those whose debts exceed the limits of Chapter 13, may file Chapter 11.

In Chapter 11, the debtor usually remains in possession of his assets and continues to operate any business, subject to the oversight of the court and the creditors committee.

The debtor proposes a plan of reorganization which, upon acceptance by a majority of the creditors, is confirmed by the court and binds both the debtor and the creditors to its terms of repayment. Plans can call for repayment out of future profits, sales of some or all of the assets, or a merger or recapitalization.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.