A company in the production of bankruptcy

Submission differs as individual, filing bankruptcy for a company even if a company as a separate legal entity because of corporations law is treated. The financial and tax consequences of bankruptcy can predict complex and difficult. These effects must be considered before a bankruptcy application is completed. Chapter 11 vs chapter Gilbert.marchlewitz@eesc.europa.eu two main forms of companies subject to bankruptcy Chapter 7 and Chapter 11 of the U.S. Bankruptcy Code. In a chapter 7 bankruptcy trustee by the court appointed to monitor cash assets and distributes corporate creditors. Despite the liquidation, the undertaking's debts be dismissed. In most cases is resolved at this stage. In a chapter 11 bankruptcy argued a plan of reorganization of the operations the company, which contains some of his debts and to pay to others. This plan must approve the Court after the comment of creditors and the company survived in the reorganization of the form after his departure from bankruptcy. Chapter 11 is of the companies who wish to pursue their activities promoted and Chapter 7 is accused of having the Court resolution resolve monitor (which can cause criminal liability in certain circumstances) by companies that even takes to avoid improperly handling resolution .Timing and VenueIf companies intended to survive bankruptcy, it is important that a chapter 11 bankruptcy petition be filed until it was too late. If the company's finances quite badly deteriorated, the Court can will deny the reorganization plan and Chapter 11 bankruptcy petition is converted to a petition for Chapter 7. However, it might be a good idea to negotiate sein.Siedlungen with Gläubilike before filing for Chapter 11 bankruptcy and settlement plan Court bankruptcy for approval present. He is also the subject businesses Importantpour choose bankruptcy court hearing the case. The company can submit the petition in bankruptcy court in the judicial district, the corporate headquarters or the State of the Statute contains. New York bankruptcy courts and Delaware are considered the most experienced in dealing with problems of Chapter 11 for corporations CorporationsS S cases.Special companies that are selected, be treated under the section S of the internal revenue code for the purposes of federal income tax. This choice makes almost every corporate tax exempt. Disadvantages of own shares in a company S is when it saves bankruptcy that has bankruptcy court the right to corporate bonds declare personally liable partners to the extent of the profits of the company (dividends or capital gains, for example) received passed. It is important that companies, either voluntarily avoid S or involuntary procedure Chapter 7 Chapter 7 procedures bring no discharge from liability. Furthermore, acquired in bankruptcy, excluding tax status of a company S from business income is exposed to the bankruptcy proceedings. Shareholders who took part in the management of the company cannot be held personally responsible for taxes assessed on society during this period.