Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
You can file for Chapter 11 to restructure the debt or you can file for Chapter 7 to dissolve the business and start a fresh company. Technically, there is no discharge of debts for a business Chapter 7. However, if you did not personally guarantee the debt in question, successful completion of Chapter 7 means that the creditors will have no reason to come after you. The assets of the company have been liquidated and distributed to all creditors by the Chapter 7 Trustee. For more information, click on the link below:
The State cannot refuse to renew your license based on the bankruptcy filing. See 11 U.S.C. Section 525:
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