ENTREPRENEURSHIP

Detailed explanation-1: -When a company files for bankruptcy, the value of its stock often declines significantly or becomes worthless, depending on the specifics of the bankruptcy proceedings. At that point, the shares are de-listed from exchanges and any dividends halted, but the residual shares may continue to trade over-the-counter (OTC).

Detailed explanation-2: -This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.

Detailed explanation-3: -Businesses choosing to terminate their enterprises may also file Chapter 7. Chapter 7 provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent. A Chapter 7 Trustee is appointed to convert the debtor’s assets into cash for distribution among creditors.

Detailed explanation-4: -Discharge of Remaining Debt Most debts are discharged under a Chapter 7 bankruptcy. The discharge of debt will release the debtor from any personal liability for payment. Once a deficit is discharged under Chapter 7, the creditor may no longer seek future restitution from the creditor.