What is the difference between a chapter 7 and chapter 11 bankruptcy?

Whats the difference between Chapter 7 and Chapter 11 bankruptcy?

  • Answer:

    Chapter 7 bankruptcy is a final liquidation of the company. Assets are sold off to pay debt. Chapter 11 bankruptcy is a rehabilitation bankruptcy. The company (or individual) is given a chance to retain their assets and get their financial status back on firm footing.

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