Demystifying Business Bankruptcy: Chapter 7 vs. Chapter 11 – Know the Key Differences
If your business is in financial distress, a bankruptcy could be a helpful tool to manage debt and reorganize operations. There are two common bankruptcy options for businesses: Chapter 7 and Chapter 11. Each chapter serves a distinct purpose and comes with its own set of rules and outcomes. This article will address the key differences between Chapter 7 and Chapter 11 bankruptcy, helping businesses understand which option may be more suitable for their financial situation.