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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – How Does Chapter 7 Bankruptcy Work?
Description: How Does Chapter 7 Bankruptcy Work? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Chapter 7 bankruptcy liquidates the company. Here is how Chapter 7 works: When a company goes into Chapter 7 bankruptcy proceedings, the bankruptcy trustee takes control of the company to liquidate the assets and pay the creditors. A Chapter 7 proceeding starts with a creditor filing a petition with the bankruptcy court. The debtor must provide a list of assets and liabilities along with tax returns. In the case of involuntary bankruptcy, a creditor can file to move to...