In many cases, companies are often in debt when they file for bankruptcy. However, companies are not required to be in a position in which there assets cannot cover their liabilities.

In some cases, companies may have enough assets to cover their debts, but they are unable to repay their debts with these assets because the assets are not very liquid. 

This means that the assets cannot be converted into cash to repay the debts. Oftentimes, when a company is in this circumstance and files for bankruptcy, a bankruptcy court will order the company to forfeit many of its assets. 

If your company has questions about a potential bankruptcy filing, contact the Austin bankruptcy lawyers of Slater Kennon LLP, at 512-338-1100.