Bankruptcy Lawyer Bryan W. Stone answers the question: “What is Chapter 11 Bankruptcy?”
One of the commonly understood virtues of filing for bankruptcy is that your pre-bankruptcy liabilities get wiped out. For individuals, this means that credit card debt or medical bills get wiped clean and creditors can’t come back years down the line and demand payment. The same is true for corporations. Those who have emerged from bankruptcy, especially those sold to new buyers after going into bankruptcy, expect a clean slate, something that makes buyers willing to take the risk of buying such companies in the first place.