Corporate Chapter 7

[FloridaGuy]

[justbroke]

The only reason to file Chapter 7 for a business, is probably when it's in Receivership and the Receiver is trying to liquidate the business to basically shut it down. But that's all I can think of.

It's basically a Statement that the business (corporation) has no money to pay all its creditors, and some may just give up. If the business tried to stay afloat and file Chapter 11... the creditors would line up at the door.

[HHM]

First, lets not equivocate on the term "business" and "corporation". A "business" is an operation, a corporation (or an LLC) is an entity. A natural person can operate a business and not be a corporation or LLC.

After a chapter 7, the corporation is shut down and all the assets are liquidated to pay creditors.

Basically, for a corporation (or LLC), a chapter 7 kills the company.

[FloridaGuy]

Thanks HHM...

That's what I had suspected.