Liquidating chapter 11 discharge
Next Steps: Learn More About Your Bankruptcy Options With an Attorney Bankruptcy can be a confusing area of the law.
Additionally, the debtor may offload leases and contracts, while recovering certain assets and focusing its efforts on becoming profitable.
The process normally involves a period of consolidation, which may include a reduction in work force.
Chapter 12 The purpose of Chapter 12, titled "Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income," is self-explanatory.
The Chapter 12 process is quite similar to that of Chapter 13, in that the debtor devises a plan to repay his or her debts over a period of a few years.
Additionally, debtors may be able to eliminate more debts under the Chapter 13 discharges.
Most Chapter 7 applicants don't even set foot in court and only see the judge if there are objections to the bankruptcy plan. Different Types of Bankruptcy If you were to ask an attorney, "What is bankruptcy?
Bankruptcy's Main Goal Federal bankruptcy laws are intended to allow debtors a way out of particularly heavy debts, giving consumers and businesses a fresh start where all other options have failed. There are several types of bankruptcy provided under the U. Bankruptcy Code, each with its own rules and procedures: Chapter 7 Chapter 7 Bankruptcy is titled "Liquidation" in the Code, since most of the debtor's assets are sold for cash (or "liquidated") and used to pay creditors.Chapter 13 Chapter 13 Bankruptcy is titled "Adjustment of Debts of an Individual with Regular Income." Unlike Chapter 7, Chapter 13 is best suited to debtors with regular income.Those who file under Chapter 13 typically are able to hold onto valuable assets, such as a house and car.Specifically, the Nelson Act gave companies the option of discharging debts but did extend those same protections to consumers. The Federal Rules of Bankruptcy Procedure (or simply "Bankruptcy Rules"), created by the U. How Bankruptcy Courts Work While most court cases are heard in either civil or criminal court, bankruptcy has a dedicated system of courts throughout the country. United States bankruptcy judges have the authority to make binding decisions in bankruptcy cases, such as eligibility issues or whether to grant a debt discharge.In 1978, using the authority granted by Article I, Section 8 of the U. Constitution, Congress enacted the much broader "Bankruptcy Code." The Code has been amended numerous times since being enacted and governs all U. However, most aspects of the bankruptcy process are done outside of the court.This is similar to a Chapter 11 reorganization, but applicable to a city or some other municipality instead of a business entity.