Chapter 7 of Title 11 U.S. Code is the bankruptcy code that governs the process of liquidation under the bankruptcy laws of the U.S. In contrast to bankruptcy under Chapter 11 and Chapter 13, which govern the process of reorganization of a debtor, Chapter 7 bankruptcy is the most common fo...
Bankruptcy Code. They are: Chapter 7 (liquidation for individuals or businesses), Chapter 9 (for municipalities), Chapter 11 (reorganization, usually for businesses), Chapter 12 (for family...
Liquidation under Chapter 7 is a common form of bankruptcy available to individuals who cannot make regular, monthly, payments toward their debts.
Chapter 7, known as “straight” or “liquidation” bankruptcy, of Title 11 in the U.S. bankruptcy code controls the process of asset liquidation.
Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensiv...
The United States Bankruptcy Code has different ways and outcomes, when filing for bankruptcy protection. Learn the differences between Chapter 7 and Chapter 11.
SUBCHAPTER I—OFFICERS AND ADMINISTRATION (§§ 701 – 707) ; SUBCHAPTER II—COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE (§§ 721 – 728) ; SUBCHAPTER III—STOCKBROKER LIQUIDATION (§§ 741 – 753)
Overview ; When a debtor becomes insolvent and the bankruptcy proceeding begins, the debtor will either liquidate its assets or reorganize its debts. The liquidation route is governed by Chapter 7 of the Bankruptcy Code. In a liquidation, the assets of the debtor, usually a corporation, are sold in piecemeal or as a going concern “in order to satisfy the [d]ebtor[’s] creditors.” See In Re Cohen, 141 B.R. 1 (Bankr. D. Mass. 1992). Under the Code, a trustee administers the liquidation by “...
This category is for companies who have filed for Bankruptcy in the United States under Chapter 7 of the U.S. Bankruptcy Code.
Bankruptcy Code. In addition to Chapter 13, Chapter 7, and Chapter 11, described above, there are three more specialized chapters. Chapter 9 is for municipalities, Chapter 12 is for farms...