Hey everyone! I just came across this term ‘business bankruptcy,’ and honestly, I’m a bit confused. From what I gather, it’s when a business can’t pay its bills anymore, but it sounds a bit more complicated than that. Like, how does the whole process work? Can someone break it down for me?
Yeah, it can be pretty confusing! Basically, if a business is in debt and can’t pay, they might have to file for bankruptcy. There are different chapters, like Chapter 7 for liquidation and Chapter 11 for reorganization.
What if they have a refund check coming? Can they keep that if they switch from Chapter 11 to Chapter 7?
So, can filing for business bankruptcy stop foreclosure? I’ve heard mixed things…
And what about paying back personal loans? Do you have to report that in bankruptcy filings?