How are debts paid in a small business Chapter 7?
In all small business Chapter 7 cases which are not sole proprietorships, no discharges are offered for the business and it is considered effectively defunct after the filing. A trustee will be appointed by the court and subsequently will proceed to liquidate the assets of the company. In turn, he or she will distribute the proceeds from these sales to pay the company’s debts, taking the burden of debt management away from the business owners and putting it in the capable hands of a court-appointed official.
To learn more about how Chapter 7 bankruptcy may help you to put an end to distressing small business financial difficulties, contact the knowledgeable Houston bankruptcy attorneys at the Law Office of Russell Van Beustring, P.C., at 713-973-6650 today.