For the purposes of this article, the use of the word company also includes partnerships and the limited liability company.
Several times, business owners seeking bankruptcy not really concerned with the effect on society, but on themselves personnellement.Cet article examines the reasoning and misconceptions held by many of the company owners.
There are two choices of bankruptcy of a company: Chapter 11 or Chapter 7.
Chapter 11 allows business society to continue and to reorganise debts by proposing a repayment plan to creditors. Creditors to vote for or against the plan. A full treatment of chapter 11is beyond of the scope of this article.
Chapter 7 is liquidation of the assets. When a case of Chapter 7 shall be filed a company must stop doing business, if it is still running. A trustee is appointed to sell assets of the company and pay creditors the product in accordance with the law.It is very important to understand that corporations do not receive a discharge of debts in case of Chapter 7.
Many companies owners is confused about this truth fondamentale.Apparemment, confusion stems that many business owners do not understand that a company which is a separate legal entity (which is probably why it was formed in the first place).If yes or no bankruptcy file corporation has nothing to do with any personal obligation, owners or agents of the company can avoir.Par example, if the company owner signed personal guarantees certain corporate debts or obligations of the tax on companies (such as contributions to the employee Trust Fund), tax liability this obligation does not disappear unless as and until these debts are paid.So unless there are sufficiently active in the company to pay all the debts, the owner will always forced these debts for which they are personally responsible for independently of what société.dépôt company bankruptcy does not affect their individual responsibility in both cases.
In short, whether or not a company receives a discharge of debts is therefore a great "which takes?" because we simply does affect anything this soit.Si company is undertaken simply doesn't matter if the debts are discharged or not because the creditors of the Corporation will be just continue and retrieve company against whatever the assets of the company are available and which does not affect the leaders of the company.
Most of the time, these business owners seek actually do is file a bankruptcy for themselves personnellement.Dans this case, they should consult with a lawyer on record of individual bankrupt bankruptcy.
But, there are times where the filing of a case of Chapter 7 for a company is beneficial as where the company has assets and wants to stop making the affaires.Dans such a case, an independent administrator responsible for selling and disburse assets to creditors can eliminate this liability to the owner of the company and release from liability for not disbursed properly assets and the liquidation of the correctement.Cela meet fiduciary, all corporate officers have to creditors of the company when a company becomes insolvent.
Another advantage of filing a chapter 7 for a company is puts creditors of the company on notice that the company ends and what that are active may be available is distributed by the bankruptcy and who will be tous.Il would therefore no reason for the creditors to continue society post-bankruptcy, whereas if a bankrupt is not filed, the owner of the company may have to constantly appear in court to inform the judgment creditors society works and has no assets.
It can help when you consult a bankruptcy lawyer to understand the basic concepts of above.
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