Bankruptcies, also known as insolvencies are a critical and severe legal event that shows that a company is in severe distress, and in some cases signal complete business collapse. Companies that go through bankruptcies send a petition to a US Federal Court for protection against creditors when their business is unable to pay its debts.
A company filing for Chapter 11 bankruptcy hopes to return to normal business operations and a better financial situation in the near future. This type of bankruptcy is generally filed by corporations that need time to restructure debt that has become unmanageable.
Another form of bankruptcy is Chapter 7, often referred to as “liquidation bankruptcy.” When you file for Chapter 7, a portion of your property may be liquidated – or sold — to pay down your debt. This form of bankruptcy is mostly used by small business's and indivudals.
- Creditsafe receives bankruptcy data daily from the US Federal Courts.
- Bankruptcies are ongoing for two months to three years or more, depending on complexity.
- Creditsafe receives over 30,000 bankruptcy reports per year
- Receive from 250 courts throughout the US
- Over 2.8 million records currently.
