Failitüüpidele

Failitüüpidele, or types of bankruptcy, are legal frameworks that govern the process of a company or individual declaring insolvency. These types vary by jurisdiction but generally fall into two main categories: insolvency and reorganization. Insolvency types include liquidation, where the assets of the debtor are sold to pay off creditors, and receivership, where a court-appointed receiver manages the debtor's assets. Reorganization types, on the other hand, allow the debtor to continue operating under new terms, such as debt restructuring or conversion, where the debtor's assets are transferred to a new entity. Other types include Chapter 7 and Chapter 11 in the United States, where Chapter 7 involves liquidation and Chapter 11 allows for reorganization. Each type has its own procedures, benefits, and drawbacks, and the choice of failitüüp depends on the debtor's financial situation, goals, and legal requirements.