What is the difference between Bankruptcy and Bankruptcy Protection that I hear in the news recently?
Posted by Financial Advisor | Filed under Bankruptcy & Foreclosure
In recent news, companies could be forced to Bankruptcy. Is this the same as "companies can be forced into Bankruptcy Protection"?
I thought Bankruptcy protection is "PROTECTION" against Bankruptcy?
???
They are the same thing. Bankruptcy protection is basically a term used because once you file for bankruptcy, your creditors are not allowed to contact you or try to collect anymore.
Please consult a bankruptcy attorney for more clarification. All attorneys usually give a free consult. Good luck.
Bankruptcy protection also usually refers to a type of bankruptcy where the company is protected from creditors for a period of time.
Bankruptcy liquidation is where the company is dismantled and assets distributed to the creditors.