Here is another good article form last summer.
When it comes to the issue of Donald Trump’s bankruptcy, we are only concerned with Chapters 7 and 11.
That’s because a Chapter 7 filing is indicative of poor financial management skills on behalf of the debtor — a red flag for voters evaluating a presidential candidate. But a Chapter 11 filing doesn’t necessarily indicate poor management. In fact, it can be seen as a tool that improves a company’s value for investors.
Here’s the difference:
Chapter 7 bankruptcy: Allows an individual to be freed of most debt in exchange for a ruined lined of credit for 10 years.
Chapter 11 bankruptcy: Allows a corporation to stay in business while it restructures its business and attempts to reduce its debt.
When Trump tweeted, “I never went bankrupt,” he was being truthful. The real estate magnate has kept good order of his personal finances.
You see, all four of Donald Trump’s bankruptcies were the Chapter 11 type. Each resulted from over-leveraged casino and hotel properties in Atlantic City. [snip]
http://moneymorning.com/2015/07/07/donald-trump-bankruptcy-a-breakdown-ahead-of-the-2016-elections/
Bookmarked. Thanks