Business bankruptcy chapter 7 occurs when a business is so far in debt that it cannot continue to operate. Like individuals, businesses can file chapter 7 liquidation bankruptcy. Unlike most individual cases, however, businesses that file chapter 7 normally have their assets sold by a court appointed trustee There are normally more items and property involved in a business than with a typical individual. If possible, the creditors will have their collateral returned to them or they will be grouped with other unsecured creditors for the rest of their claim. Normally, business bankruptcy chapter 7 takes longer than individual because there is more property and money involved. There are, of course, small businesses which may come very close to being like individual filers. The courts will decide which category a business falls into. There are other options for bankruptcy for businesses and usually, chapter 7 is only filed by a business when there is no hope of continued operations, so they opt to liquidate everything. There are slightly different laws and rules governing business bankruptcy chapter 7 depending on the size of the business that is filing. A local business bankruptcy attorney would be the best person to advise on how to proceed.