to pay off the debts. This happens when the firm or individual will not be in a position to pay. The court may decide to dismiss the case and let the business pay the debt because the judge believes the assets are sufficient to pay them back.
The Chapter 11 bankruptcy is the process of restructuring the corporate or partnership. In Chapter 11, the debtor proposes a plan that will keep the company operating and permit the company to repay its creditors within the stipulated time frame. Chapter 11 commences with the filing of an application to the bankruptcy court at the primary place of the trade. Chapter 11 is also recognized as a entity, which can be under the name of a corporation. The business is distinct from its owner’s possession. It doesn’t treat the possessions of the debtor as personal possessions to cover the debt. If a bankruptcy case involves partners, the creditor can use the assets of the partner as well as personal assets to pay the debt incurred.
Therefore, if you wish to learn more about this issue, the best option is to work with a chapter 11 bankruptcy attorney. They are the right people to guide you through the complete process. Moreover Chapter 11 bankruptcy attorney can help in your bankruptcy matter and will ensure that you are aware of the entire process.