File Bankruptcy Under Chapter 11
A business that has to file bankruptcy will also need to provide the court with all required and requested financial documentation. If the business is a sole proprietorship or a partnership, the owners’ personal assets may be at risk. The court trustee may require that the personal assets be used to meet the company’s liabilities. Personal assets are seldom an issue when the business is a corporation. If the business is publicly traded on the stock market, the Securities and Exchange Commission (SEC) has an interest in any bankruptcy proceedings. Such companies are required to file a form with the SEC and to continue to file bankruptcy with all required reports regarding the company’s securities.
