Chapter 7 Bankruptcy for Businesses

Can a business that has filed a Chapter 7 bankruptcy start another business after liquidation?

When a business files Chapter 7 bankruptcy liquidation, that business essentially no longer exists. The assets of the business are sold and the proceeds distributed among the creditors the business owed. The debts are forgiven, but the business doesn’t really have anything left. However, this doesn’t necessarily mean that a new business can’t be started or that the existing business can’t find a new lease on life after a Chapter 7 bankruptcy.