What are the various types of bankruptcy – Chapter 7, Chapter 11, Chapter 13?
A – The chapters refer to the federal bankruptcy code. Bankruptcy is a process by which individuals and businesses with more debts than assets, as defined by the law, work out their problems or liquidate their estates or business. Federal bankruptcy courts provide protection for debtors and creditors during this process. Chapter 11 is a process by which a business reorganizes, with the debtor maintaining control of the business. Chapter 7 is a liquidation process in which the debtor losses control and a court-appointed trustee manages or winds down the business to satisfy creditors. Chapter 13 relates to individuals seeking court protection while arranging and executing a plan to satisfy creditors. Q — What’s the difference between a merger, an acquisition and a takeover. A – The words often are used interchangeably. Legally speaking, an acquisition is a merger but a merger may not be an acquisition. Conventionally, a merger refers to a tax-free combination of companies wherein shareh
