The business environment today is powered by corporate credit. It’s logical, then, that companies understand the risks of extending credit – and the implications if one of their customers files for bankruptcy. In the US, however, bankruptcy can look a little different than in other countries.
Businesses that file for Chapter 11 of the United States Bankruptcy Code with court approval are able to avoid liquidation and continue to operate. Creditors might think that this means their debts will be paid. But it’s not quite as simple as that.