Originally Posted by
hercretired
Ch 11 bankruptcy comes from an inability to pay creditors. it is basically a payment-plan with the court as the overlord
stock de-listing comes from not meeting minimum stock prices over a set time frame.
Ch 7 liquidation is when the only way to pay creditors is via sale of physical assets, usually only after Ch 11 was attempted
Stated in layman’s terms.
Chapter 11 is reorganize your debts (and sometimes your union contracts) and continuing as an ongoing business.
Chapter 7 is dividing up the assets to pay off the creditors as best they can (May be pennies on the dollar) and going out of business.