Bankruptcy Features

• Bankruptcy occurs when an individual or organization cannot to pay basic expenses because of a shortage of short-term liquidity or a debt load that exceeds assets.
  
  

Reorganization

• In bankruptcy, people or organizations can reorganize their finances with creditors while keeping their assets. Individuals file for Chapter 13 bankruptcy protection, corporations for Chapter 11 protection.
  
  

Liquidation Features

• Liquidation occurs when the assets of an individual or organization are used to satisfy creditors' claims. In most cases, those who cannot possibly begin to repay their debt will often enter liquidation as opposed to reorganization.
  
  

Liquidation Filings

• A Chapter 7 bankruptcy filing is used as a part of liquidation for both individuals and corporations.
  
  

Famous Ties

• A number of celebrities have filed for bankruptcy as they reorganized or went into liquidation. Tony Braxton and Kim Basinger are two of them.