Chapter 11 Bankruptcy
Chapter 11 Bankruptcy filing refers to the process for business bankruptcy filing outlined in Chapter 11 of the United States Bankruptcy Code. Business bankruptcy filing under Chapter 11 is open to both companies and individuals owning small businesses, although it is most often being utilized by corporate parties. In the height of the recession, a lot of businesses are experiencing financial crashes and are fearing penalization if they cannot pay back their creditors or shareholders. Many companies are considering, or have already acted on, filing bankruptcy.In essence, a Chapter 11 bankruptcy filing can protect the business or company from legal charges that the shareholders may file against the owner. While the government essentially “seizes” the company and its assets, the owner of the corporation still retains a title as a “debtor in possession.” He or she will automatically be considered the trustee of the company and shall be required to carry out instructions that the government shall impose, unless a different trustee gets assigned. A bankruptcy attorney may be hired to help deal with the company’s creditors or existing trustees. Read more