Corporate Bankruptcy Law

Corporate bankruptcy law provides a legal framework for companies that cannot pay their debts. It allows firms to either restructure their finances to continue operations or liquidate assets to satisfy creditors. The most common types are Chapter 11, which enables reorganization while protecting from creditors during the process, and Chapter 7, which involves selling the company’s assets to pay off debts. These laws aim to balance the interests of the business, its creditors, and, in some cases, employees, facilitating a fair and orderly resolution of financial distress.