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Chapter 11: Bankruptcy

Decent Essays

A company’s ultimate goal is to be profitable, maintain a loyal customer base, and remain in business for a long time. Unfortunately, there are unforeseen incidences that can alter a company’s present and future plans. The economy has a downfall, a company loses some major clients, or improper business practices to name a few, can result in a company venturing into bankruptcy. Bankruptcy exists as a court procedure where a judge and court appointee analyzes the assets and liabilities of individuals and businesses who cannot afford to pay their obligations (Debt.org, 2017). The judge and court appointee have the task of deciding whether these individuals or businesses will be legally exempt from settling their debts with their creditors. The laws that are accompanied with bankruptcy are; statutory law and administrative law.
The comprehensive standard for business realignment is Chapter 11 of the United States Bankruptcy Code. At the same time, it is revealed that Chapter 11 may be more of a difficult method than the majority of other …show more content…

is apparently in financial woes with being out of cash and no way to pay their debts. Management is pursuing a method of protection from their creditors which mean that bankruptcy is inevitable. Unfortunately, bankruptcy would be the last resort in this scenario. In some cases, not sure if this is legal, but this writer has seen companies file for bankruptcy only to go back into business under a different name. Finally, in the case with Bio-Tech Inc., the laws that govern this situation would be statutory law and administrative law at the federal level.

References:
Couwenberg, O., & Lubben, S. (2015). Essential Corporate Bankruptcy Law. European Business Organization Law Review, 16(1), 39-61. doi:10.1007/s40804-015-0006-y
Debt.org. (2017). What is Bankruptcy? Retrieved from https://www.debt.org/bankruptcy/
HG.org. (2017). What is Bankruptcy? Keep Your Property. Retrieved from

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