Startup Funding Espresso -- What is Bankruptcy?
What is Bankruptcy? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Business bankruptcy is meant to protect the personal assets of the owners of a firm. It gives your company a fresh start by relieving the business of debts. There are several types of bankruptcies. Consider these options for your business: Chapter 7 -- Liquidation This shuts the business down and pays the creditors from the assets remaining. Use this type of bankruptcy if the business is no longer viable even with the debts removed. Chapter 11 -- Reorganization This reorganizes the business and shows a plan for how to repay the creditors. In most cases, the creditors will lose a portion of what is owed them. If they can recover a portion of the debt that is better than losing it all.\xa0 Chapter 13 -- Personal bankruptcy This reorganizes a sole proprietorship business in which the owner's personal assets are mixed with that of the business. It creates a plan to repay the debt over the next three to five years. Bankruptcy does go on the business owner's credit report. Consider these options for your startup that is undergoing a turnaround. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .