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Certain bankruptcy proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts. An additional purpose of bankruptcy law is to allow certain debtors to be discharged of the financial obligations they have accumulated after their assets are distributed, even if their debts have not been paid in full.
There are two basic types of Bankruptcy proceedings. First you can file under Chapter 7. This is called liquidation. It is the most common type of bankruptcy proceeding. Liquidation involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it, and distributes the proceeds to the creditors...
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