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How Businesses Use Corporate Debt Restructuring for Liquidity

Debt RR

Businesses restructuring debt typically do so because they’re having trouble meeting obligations, and it goes both ways. A B2B company may be in financial trouble because it’s having trouble collecting on its own outstanding invoices. Debt can also be secured using intellectual property, equity, and other soft debt.

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What Happens to Debts When Dissolving a Company?

Debt RR

Secured debt: If a business receives a loan or other credit — like a credit card — because of specific assets or liquid collateral, they have secured debt. Though more uncommon than equipment leases and unsecured debt, some businesses are able to acquire secured credit options.