Tag Archives: liquidation

Chapter 7 and Chapter 11 Bankruptcy – Differences ?


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.

What is Prefered Stock?

Like common stock, preferred stocks represent partial ownership in a company, each share of preferred stock is normally paid a guaranteed, relatively high dividend and has first right over common stock at the company’s assets in the event of bankruptcy.

  • Preferred stock shareholders do not enjoy any of the voting rights of common stockholders.