Linda Worton Jackson on Chapter 7 Bankruptcy

From an article entitled What Happens When You File for Business Bankruptcy? on

Chapter 7 bankruptcy is the most common type of bankruptcy, making up about 80% of filings. Chapter 7 bankruptcy is available to consumers and all types of businesses. This is an option if you do not have a means to keep your business running, and are unable to pay off your company’s current debts. The result of a Chapter 7 business bankruptcy filing is liquidation of the business’s assets and closure of the business.

Linda Worton Jackson, a partner at commercial law firm Pardo, Jackson, Gainsburg, PL explains, “Once a business files for Chapter 7, the company shuts down, the officers, directors, and employees are dismissed, and a court appointed trustee takes over to liquidate the company for the benefit of creditors. The company does not continue operating under Chapter 7, except in very rare circumstances where the trustee allows it to do so temporarily.”

Read the entire article here.