Published: by Evariste Kalonji |
permalink Chapter 7 bankruptcy is sometimes also called liquidation bankruptcy. Firms experiencing this form of bankruptcy are past the stage of reorganization and must sell off any un-exempt assets to pay creditors. In chapter 7, the creditors collect their debts according to how they loaned out the money to the firm (also referred to as the "absolute priority").
Tags: bankruptcy,chapter 7,chapter 11,liquidation,debt,creditors,absolute priority,entrepreneur,venture capital,business bankruptcy,corporate debt,preferred shares
