0
Will debt need to be repaid if incorporated business files for bankruptcy?
Wiki User
∙ 16y ago
Cutting through the mustard if you will....
Sure a corp can file BK under several different sections, Chap 11 or 7 mainly , and some of its debts may be eliminated.
However, if it's debts are "forgiven"...meaning someone doesn't get paid what they were owed, generally the ownership of the company (that is the Stock) is used to make up the difference and the owners lose their investment and interest in the Corp, the creditors who agree to take less cash, get to won the Co.
The Corp isn't going top be allowed to cancel debt and just go on, with the stockholders maintaining any equity...while they may not be responsible for the debts of the Co personally, they ar responsible up to the limit of their investment...they will (and should) lose that!
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
How does an international business file bankruptcy?
Each of the Cos it operates as are incorporated in a specific country and each country has BK laws it files under.
If a small company incorporated files for bankruptcy will the bankruptcy show up on your personal credit report?
You will need to get a final answer from your Attorney, but if you presonally gauranted in loans of any kind for your business then chances the answer will be yes. It happened to my dads comapny many years ago. IF IT DOES Their are ways to have it removed from your credit.
What happens when a business is owed money by a company that files for bankruptcy?
Need the right answer
What is a bankruptcy review of plan?
A bankruptcy plan review occurs?æwhen a business or individual files for bankruptcy. All parties involved will review the suggested plan for settlement.
Has anesiva filed for bankruptcy?
Yes. Source: http://www.scripintelligence.com/business/Anesiva-files-for-bankruptcy-after-Arcion-merger-falls-through-185934
How does a client get their money back if the business files for bankruptcy?
It depends on the chapter they filed and the financial state of the company, most likey not, that is why the filed for bankruptcy, they have no funds.
What is a bankruptcy plan review?
A bankruptcy plan review is when an individual or business files for bankruptcy and a plan for settlement on the case is reviewed by the parties involved. This type of proceeding is often monitored by mediators and attorneys for the various parties.
What protection does Chapter 11 Bankruptcy offer?
Chapter 11 is the bankruptcy code issued to a business who files for bankruptcy. This type of bankruptcy protects a business and will allow it to get running again. If a business fails and applies for chapter 7, they must sell everything and give the proceeds to creditors. A person on chapter 11 does not have to do this.
What if happens if you cosigned for car loan and the borrower files for bankruptcy?
if the consigner files bankruptcy can the borrower take the car
If a pastor files for bankruptcy can the church fund be affected?
If the pastor files for personal bankruptcy, no - the church fund can't be touched. If he files bankruptcy ON BEHALF of the church, then any and all funds and assets of the church can be affected.
What happens if a co signer files bankruptcy?
They both go bankruptcy
What happens to home warranties when a home builder files Chapter 11 Bankruptcy?
Gone unless someone buys his business and assumes debts and obligations.
