Liquidating chapter 11
Most people have heard the term "bankruptcy" and understand that it has something to do with being broke.Below is an overview of bankruptcy, its types, and how can the process actually help you in various situations.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?Chapter 13 debtors typically appear in court just once, at the bankruptcy plan confirmation hearing. " you would probably be asked whether you are a business or an individual, the status of your debts, and other questions to help narrow down the definition.Major changes to the Bankruptcy Code in 2005 included the requirement of a "means test" to determine eligibility for personal bankruptcy under Chapter 7.The test determines whether or not the debtor has too much income for this type of filing.
Chapter 11 Titled "Reorganization," Chapter 11 Bankruptcy is most often used by businesses that would like to continue their operations while they repay creditors.
The goal of this type of bankruptcy is to allow family farmers and fisherman to continue operations throughout the duration of the plan.
Chapter 9 Chapter 9 is titled, "Adjustment of Debts of a Municipality" and allows cities, towns, counties, school districts, and other municipalities to declare bankruptcy.
See Find Law's Bankruptcy Basics section for additional articles and resources.
Bankruptcy: Origins and Background Several early attempts at creating universal bankruptcy rules, beginning in 1800, were amended and eventually repealed until passage of the so-called "Nelson Act" in 1898. Each bankruptcy court also has its own local rules. has its own bankruptcy court, while each state has at least one district (90 districts total).
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.