When a corporate entity files for Chapter 7 bankruptcy and the assets are liquidated in its entirety, there is an order of priority in which creditors and third parties will have the right to their claim. Creditors with Secured Debt If the creditors are owed secured debt, that is, debt that is secured by assets […]

Most types of debt can be discharged in bankruptcy but some types of debt cannot, for example, tax debt, student loans, child support and debt incurred through fraud. Tax Debt Most tax debt incurred within three years of the Bankruptcy filing will not be discharged, nor will taxes owed for payroll taxes or other forms […]

Generally, if a publicly traded company files for bankruptcy, the Securities and Exchange Commission (SEC) will become more involved in the process. As a general matter, few public companies file Chapter 7 but may file for a reorganization. However, the SEC imposes additional reporting requirements as opposed to a privately held company. If the public […]