• Skip to content
MightyRecruiter MightyRecruiter
  • Get Free Account
  • Solutions
    • Features
    • MightySourcer
    • Post free Jobs
    • Resume Database
    • Industries
  • Pricing
    • Software Pricing
    • Why Free ?
  • Resources
    • Blog
    • Customer Case Studies
    • Webinars
    • eBooks
    • Checklists and Infographics
    • Job Description Examples
  • Recruitment Guide
    • Legal
    • Business
    • Hiring
    • HR Glossary
  • Templates
    • Job Descriptions
    • Letter Samples
  • Get Free Account
HomeRecruitment GuideGlossary Terms A-ZBankruptcy
  • Legal Resources  
    • Termination Laws By State
    • Regular Laws
    • Wage and Hour Laws by State
  • Business Resources  
    • Business Closing
    • Business Finance
    • Business Tax
    • Starting a Business
    • Business Operations
    • Insurance and Liability
    • Intellectual Property
  • Hiring Resources  
    • Hiring Process
    • Wages and Benefits
    • Workplace Safety
    • Discrimination
    • Employee Termination
    • Managing Employees
    • Hiring Tips for Employers

Bankruptcy

For businesses, bankruptcy is a way for debtors to eliminate any debts or to make it easier to repay those debts. There are two types of bankruptcies that companies can file for: Chapter 7 and Chapter 11. Chapter 7 bankruptcy allows a business owner to eliminate a majority of or all of the debt. Sole proprietorships mean that the business owner is personally liable for those debts, and Chapter 7 can work well in those situations. LLCs or corporations can also file for Chapter 7, but they will need to file on behalf of the company and require a lawyer. For Chapter 11, a debtor is allowed to restructure debts in a way that is approved by a bankruptcy court. It allows debtors to sell assets or downsize the business if necessary in order to make it easier to pay off all the debts.

Related Terms

  • business debt
  • buyout agreement
 

Legal Disclaimer

The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.

  • VIDEO TOUR
  • CHROME EXTENSION

MightyRecruiter

  • About Us
  • Work Here
  • Partners
  • Blog

Hiring Software

  • Features
  • Why Free?
  • Pricing
  • Free Job Postings
  • Free Job Description Samples
  • Watch Demo Video

Support

  • Terms of Use
  • Your Privacy
  • Disclaimer
  • Resources

Contact Us

Monday-Friday, 8am-5pm CST
1-844-382-1750
recruiterhelp@mightyrecruiter.com
Mighty Recruiter
  • Follow Us

© 2023, Bold Limited. All rights reserved

Powered by BOLD