Bankruptcy is designed to be a fresh start for either people or businesses. If a judge approves it, a filing can begin the process for financial recovery that may take years or be complete in a matter of months.
Of course, bankruptcy can go sideways just like any other financial venture. A lot of brides-to-be in Texas are disappointed to learn that the venue where they planned to celebrate tying the knot closed before they could get there. The chain of wedding venues apparently closed when their trustee converted the type of their bankruptcy.
Most individuals seeking bankruptcy will file a request under Chapter 7 of the U.S. Bankruptcy Code. This allows a trustee to take over a person's remaining assets, with a few exceptions that a judge may see as necessary for a person's standard of living, and liquidate them to raise money which can be used to settle some or all of their debts.
Several businesses may file for a Chapter 11 bankruptcy, which allows them to reorganize their finances and regain control of the company. In the case of this wedding venue, their trustee switched from a reorganization to a liquidation, which required them to get rid of most or all of their assets.
An attorney can help consult on the possibility on filing for bankruptcy and determine which type is most likely to be approved by a court. Legal representation can be very useful when people or businesses are facing dire financial straits and are not sure the best way to proceed towards economic health.