What happens when a company files for chapter 11 bankruptcy?

Answer Reorganizing a company can be trying and expensive. It may be necessary, though, because of a business' inability to pay bills and keep running. Chapter 11 bankruptcy makes it possible to reorganiz... Read More »

Top Q&A For: What happens when a company files for chapter 1...

What happens when a company files for bankruptcy?

When a company files for bankruptcy, it is acknowledging its insolvency and need to eliminate lots of debt. While in bankruptcy, a judge may discharge some debts and put the company on a path towar... Read More »

What Happens to a Franchise Agreement When a Franchisee Files Bankruptcy?

A franchisee can file either a Chapter 7 or a Chapter 11 bankruptcy. A Chapter 7 bankruptcy results in the franchise ending business operations and most, if not all, debt discharged. A Chapter 11 b... Read More »

What Happens in Chapter 7 Bankruptcy?

If you've decided to file Chapter 7 bankruptcy, you're likely worried about a mounting number of unpaid credit card accounts and perhaps medical bills. Since 2005, the United States federal governm... Read More »

What happens to stockholders in Chapter 11 bankruptcy?

In a Chapter 11 bankruptcy, a company with common stock attempts a reorganization of the business in hopes of becoming profitable again. In most cases, the stock will continue trading, but it will ... Read More »