Whats the difference between dissolution and bankruptcy of a california corporation?

Answer 1

Note: I am an attorney.

Bankruptcy--equals filing a court proceeding whereby the debtor corporation agrees to allow a trustee to take possession of the corporation and either (under chapter 7) sell off the assets of the corporation to satisfy existing debts. At the end of chapter 7 the corporation will be dissolved, or (under chapter 11) set up a payment program under which the creditors will receive payments for a period of time from the continuing business operations of the enterprise.

Dissolution is the termination of the corporation as a legal entity. It generally requires that the filer demonstrate that there are no pending adverse claims or debts against the corporation.