Can Shareholders File For Bankruptcy?
Can shareholders file for bankruptcy? Tim Cella used to work at several law firms Remember, I say this and I’m not an attorney. Shareholders in a company can file for bankruptcy, and in some cases, they're legally required to. If the company is going through a Chapter 7 bankruptcy, which is the kind where the company will be liquidated, shareholders are considered creditors. In this case, the shareholders' names and addresses are on the list of creditors that will appear in the official bankruptcy documents (the petition). If they want to file for bankruptcy, they must do it within a certain time period after their names appear on the petition. So if you're a shareholder in one of these companies and you want to pursue bankruptcy as an option, you'll need to check with your attorney to learn about any specific deadlines that apply in your case. Now, if you are talking about personally, shareholders of a corporation can file for bankruptcy, just like any other person. ...