![]() ![]() When a large company enters Chapter 7 bankruptcy, entire divisions of the company may be sold intact to other companies during the liquidation. ![]() This may or may not mean that all employees will lose their jobs. The trustee generally liquidates the assets and distributes the proceeds to the creditors. A Chapter 7 trustee is appointed almost immediately, with broad powers to examine the business's financial affairs. A Chapter 7 filing means that the business ceases operations unless those operations are continued by the Chapter 7 trustee. When a troubled business is unable to pay its creditors, it may file (or be forced by its creditors to file) for bankruptcy in a federal court under Chapter 7. ![]() 4 2005 bankruptcy law revision: the BAPCPA. ![]()
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