Chapter 7 Business Bankruptcy refers to a procedure allowed under The United States Bankruptcy Code in which a business entity (such as a Corporation, Limited Liability Company, Limited Partnership, etc.) liquidates its assets in an orderly and transparent procedure. This process allows a struggling business to cease its business operations and provide a potential monetary dividend to its creditors from the sale of its business assets. A business entity that files a Chapter 7 Bankruptcy Petition is often referred to the “Petitioner.”
One of the immediate advantages of a Chapter 7 Business Bankruptcy is that all creditor activities associated with the business are effectively stayed, thereby allowing the Petitioner to funnel all pending creditor actions through a single forum – The United States Bankruptcy Court.
Business Chapter 7 Bankruptcy Lawyer
It is important to engage the services of a qualified attorney with experience in The United States Bankruptcy Law in general and in all phases of the Business Bankruptcy process in particular. Properly planned, initiated and executed, the Chapter 7 Business Bankruptcy process is an extremely effective way in which to place the public at large on notice that the distressed entity is no longer actively engaged in business operations. This process assists the principals of the business in their effort to move forward with different, exciting new opportunities – free from the time-consuming restraints stemming from the problems associated with the obsolete distressed business.