One of the initial questions that are to be answered is whether the business is a partnership or else a sole proprietorship? If you possess a corporation there are also limited liabilities for the companies as well as partnerships that are very legal entities that are divide from their partners. In such cases you can file the Chapter 7 or else Chapter 11.
If you have the partners as well as you choose the Chapter 7 then you must know that in the Chapter 7 case the trustee that is appointed by court that can sue general partners if partnership’s assets are not sufficient to pay for entire debt. The partners can also be sued by the well funded trustee prosecute on the behalf of the business creditors. If you contain a proprietorship then they are very much just the extension of owner plus a Chapter 7, Chapter 11 or else a Chapter 13 may also apply.
Chapter 7 is equivalent to the liquidation as well as Chapters 11 and 13 are concerning the reorganization. How can you make the purpose on which way to file? You need to look at the facts as well as see which of the avenue suits business better. For instance, you chose Chapter 7 then one time when your assets are left can you still run your business, most probably not. So if you think you have to give up the business after filing Chapter 7, you would be wrong.
If you opt to file Chapter 7 plus you have the business that doesn’t need much of the start up capital then there is no such reason why you cannot resume that business however you can’t resume that particular business unless your bankruptcy is discharge. The Chapter 7 is suitable when you feel that business has no such future at all. When it has the fair amount of the assets or else qualities which can’t be done once more and finally if you feel that the liability is way much that are trying to rebuild that would be the waste of time, then this Chapter 7 is for you.
If you want the business back on all its feet as well as give it the chance to overcome the bankruptcy at that time reorganization of the Chapters 11 and 13 will be suitable. During filing of the Chapter 11 the court appointed the trustee that will sit down as well as figure out the reorganization plan plus if it is possible they will take t recommendation to the judge this is the way to go on but if trustee cannot make the connection for the reorganization then they can make the recommendation Chapter 7 be implemented.