Filing business bankruptcy is a federal process overseen by the U.S. Trustee Program. In any type of bankruptcy, a committee is assigned by the trustee that will represent the company’s stockholders and credit lenders to ensure a fair outcome. Although it may not feel like it at the time, the ultimate goal of business bankruptcy is to help you find financial stability once again. In all bankruptcies an automatic stay is issued. This legally stops all collections, foreclosures, evictions, and lawsuits.
The process behind Chapter 7 in business bankruptcy is fairly straightforward: The requirements to file bankruptcy are that a trustee is responsible for redistributing the assets to the creditors and overseeing the liquidation process. They run meetings between all the parties and ensure fair distribution. You won’t have much control over the proceedings and, when it’s all said and done, you will be free to pursue your next project.