Any business in Louisville could one day find itself facing hard financial times. Factors, such as the economy, can make it so that a once flourishing business is now struggling to keep its doors open. When that happens, the owners of the business may want to pursue either a Chapter 7 or a Chapter 11 bankruptcy. What are the differences between these two types of business bankruptcy?
Pharmacogenetics Diagnostic Laboratory LLC, is a Louisville company once saw significant growth. In fact, in 2013 it was named Louisville Business Fist's 2013 business of the year. However, Louisville residents may be surprised to hear that it is now filing for Chapter 11 bankruptcy.
Kentucky businesses often need credit to make payroll and grow their business. When things go right, this credit can help the business blossom; when things go badly, it can become a weight around the business' neck. Fortunately, when an unlucky roll of the dice strikes, Kentucky businesses have a way to lighten that weight - by filing for Chapter 11 bankruptcy. Just ask a company that services oil wells; it may have just shaved off $750 million in debt.
Bankruptcy law is complicated. There are various kinds of bankruptcy, some most commonly suited for individual consumers and others more common for struggling businesses. In terms of consumer bankruptcy, most people go the routes of either Chapter 7 or Chapter 13.