Whether you are debating between a Debt settlement and bankruptcy filing or have decided to file bankruptcy but are worried about the effects it might have on your credit, you are bound to have many questions.
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If you are thinking about winding down your incorporated business, there are two approaches you can take: (1) cease operation, liquidate all the business assets, and dissolve the corporation; or (2) file a Chapter 7 bankruptcy for the corporation.
Usually, when a corporation has some assets that need to be liquidated in the process of winding down, some people file bankruptcy for their corporation (as opposed to winding down the business on their own) even though, unlike individual debtors, corporations do not get a discharge in bankruptcy.
One advantage to filing bankruptcy for a corporation is that it may discourage lawsuits from creditors because they know that a trustee in bankruptcy will be administering all the property of the estate, including the assets of the corporation.
The information contained on this site is for general education only and it is not, nor is it meant to be, legal advice. You should seek advice from a bankruptcy attorney for your specific situation.