Chapter 7 business bankruptcy

Chapter 7 bankruptcy is court-ordered dismantling of a business that has been deemed unable to continue successful operation. A trustee is appointed by the court to take control of the bankrupt company and guide it through the process of liquidating all company assets in order to pay creditors some amount of what is due.

In Chapter 7, the trustee makes distributions to creditors without a plan of reorganization, meaning the process of paying off debts can begin sooner and with less administrative work.