It depends, but we find dissolving the business through a wind-up is often the preferred method as it more economical. Moreover, a bankruptcy filed by a corporation does not discharge that corporation’s debt! So why file a business bankruptcy? If the business has a lot of assets and creditors, filing a bankruptcy can provide an orderly distribution of the assets by the trustee. If the business still has a future, reorganization under Chapter 11 or Chapter 13 may be appropriate. Discuss your options with a San Francisco bankruptcy lawyer.

Posted in: Business Bankruptcy FAQ