Posts Tagged ‘Chapter 11 Bankruptcy’

Corporate Bankruptcy Under U.S. Law – Chapter 11 and Chapter 7

Here are the 2 types of corporate bankruptcy under U.S. law.

  • Chapter 11 bankruptcy, allows a company to continue to operate as it sheds debts and contracts it can not afford.
  • Chapter 7 bankruptcy, the company goes out of business fairly rapidly as its assets are sold off to try to satisfy its creditors.

[ Via CNN Money FAQ ]

WALL- STREET IN PANIC – Lehman Brothers Collapses

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Collapse of one of the world’s largest investment bank, Lehman Brothers has triggered large stock market falls around the globe. Wall Street has seen its worst day since 2001 amid fears about the stability of the financial system.

158-year-old bank Lehman Brothers, announced it was filing for Chapter 11 bankruptcy in the United States.

Chapter 7 and Chapter 11 Bankruptcy – Differences ?

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Five different kinds of bankruptcy cases cases are divided into two different types of bankruptcy cases:

  1. Liquidation – Chapter 7
  2. Reorganization – Chapters 9, 11, 12 and 13

According to investopedia

  • Chapter 7 bankruptcy is called liquidation bankruptcy.
  • Chapter 11 bankruptcy is called rehabilitation bankruptcy.