What Happens If You File Bankruptcy?

What Happens if You File Bankruptcy?

Many of our clients ask us what happens if you file bankruptcy? This is a very important question, and several significant Bankruptcy Code provisions are triggered when filing bankruptcy. Learn more about the automatic stay, bankruptcy estate and the bankruptcy trustee.

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The 341 Meeting of Creditors

341 Meeting of Creditors

In every bankruptcy chapter, the person or authorized representative of a business must attend a 341 meeting of creditors that is required under 11 U.S.C. § 341(a). The 341 meeting is not a test. It is an opportunity for the case trustee to do their job and determine if there are any assets to distribute to creditors.

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Treatment of Unsecured Creditors In Chapter 11

Bankruptcy in Maryland

An important benefit of a business filing for Chapter 11 bankruptcy is that the Bankruptcy Code pursuant to 11 U.S.C. §507 prioritizes debt into categories and at the bottom are general unsecured claims, which can be paid a small percentage of their claims.

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