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Ask Ellen Your Own Question
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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what are the chances of most business owner filing for chapter

Customer Question

what are the chances of most business owner filing for chapter 7 and get approved?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

Thank you for your question. I will strive to provide you with legal information to assist you. If my answer is not clear to you, I encourage you to ask me for clarification by using the reply button.

A business may file for a chapter 7 at any time. Depending upon the type of entity that is filing, the business must be properly authorized by its owners to file
Customer: replied 6 years ago.
what if most of the creditors rejected and file to court that they want judge not to approve? what are the chances that court will listen?
Expert:  Ellen replied 6 years ago.
A Chapter 7 does not require creditor approval. It is a liquidation bankruptcy
Customer: replied 6 years ago.
but if there are proof that he was trying to transfer $$ to his kids before filing for bankrupcy, will court still approve his chapter 7?
Expert:  Ellen replied 6 years ago.
Yes. However the court would take action to set aside the transfer to the children and recover the money for the benefit of creditors