California Voluntary Petition for Non-Individuals Filing for Bankruptcy
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FAQ
What is bankruptcy? Bankruptcy is a legal process to help people who owe money, or debtors, get relief from debts they cannot pay and, at the same time, help people who are owed money, or creditors, get paid from assets property the debtor has.
If formed as a corporation: The owners of the corporation are not liable for the losses of the businesses. Creditors generally may only look to the corporation and the business assets for payment.
The Bankruptcy Code and Bankruptcy Rules (and local rules) set forth the formal legal procedures for dealing with the debt problems of individuals and businesses. There is a bankruptcy court for each judicial district in the country. Each state has one or more districts.
Bankruptcy is a legal process to help people who owe money, or debtors, get relief from debts they cannot pay and, at the same time, help people who are owed money, or creditors, get paid from assets property the debtor has.
Generally speaking, insolvency refers to situations where a debtor cannot pay the debts they owe. For instance, a troubled company may become insolvent when it is unable to repay its creditors money owed on time, often leading to a bankruptcy filing.
What happens to small businesses who cannot repay their debts? If a small business cannot repay its debt, the lender could attempt to seize the owner or business's assets or bring the company to court to sue for payment.
