A business bankruptcy case starts out much like a personal bankruptcy - filing a bankruptcy petition. Collection efforts and lawsuits are frozen while finances are sorted out.

Creditors are notified, claims for payment are made, and assets are sold or debts reorganized, depending on the goal of the case.

The basic path is straightforward: a bankruptcy trustee takes control of assets and property in a Chapter 7 case, toward liquidation. In Chapter 11, a business, called the debtor in possession, typically keeps running until the court approves the reorganization plan and it's put into action.