Can a company that files a Chapter 7 bankruptcy start a new business afterwards?
Yes, but it is generally inadvisable since a company does not receive a bankruptcy discharge. It is usually better to start over with a new company, sometimes after purchasing assets through a bankruptcy sale from the bankrupt corporation. On rare occasions, a company may purchase the corporate “shell” of a company eligible to sell stock on a listed exchange to avoid going through the registration process. In any event, one would want to change the corporate name to avoid the stigma of the previous business’s failure.
