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The American bankruptcy law almost encourages debtors who are unable to pay their debts to file for bankruptcy. Is filing bankruptcy a good thing or a bad thing?
Bankruptcy law allows for business to continue operating depending on what chapter of bankruptcy they file for and how far in debt they are in. Businesses have to consider want chapter to file under chapter 7 or chapter 11. Most times business file bankruptcy to find a way to become more profitable again. Under Chapter 7 liquidation takes place, and the company goes out of business and under chapter 11, reorganization takes place. "The process of starting a claim starts when a bankruptcy petition is filed and then an estate is created...
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