Every business owner needs to know the difference between insolvency and bankruptcy. Often these two terms are misunderstood and improperly used in conversation. You need to know their correct meaning because both are used in civil law and both have different issues to address during the process. In addition, understanding these two terms builds a better comprehensive understanding of financing your business.
Chapter 11 is a federal government protection process whereby a business is assigned a trustee by the bankruptcy court to reorganize the business operation. This is the best course of action for businesses with employees. This form allows the business to continue operations and maintain all or good portion of the workforce.