When preparing any business for unforeseen circumstances that could result in a financial hardship, one reality that must be considered is the utilization of a bankruptcy.This can be done by a business to give itself time to re-organize, or to liquidate a company and pay creditors in a court-approved, equitable fashion.

Answer these seven categories regarding Chapter 7 & Chapter 13 Bankruptcy:

The type of bankruptcy

Circumstances when appropriate to choose each type

Time limitations and restrictions

Financial eligibility limitations and restrictions

Distribution and retention of assets and resources

Advantages

Disadvantages