In the United States, bankruptcy is largely governed by federal law, commonly referred to as the "Bankruptcy Code" ("Code"). The United States Constitution (Article 1, Section 8, Clause 4) authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United State...
Chapter 11 is a type of bankruptcy generally filed by businesses and involves a reorganization of their assets and debts under court supervision.
Chapter 15 of the U.S. Bankruptcy Code allows for cooperation between U.S. and foreign courts in bankruptcy cases that touch upon U.S. interests.
There are two main types of business bankruptcies in the U.S.: Chapter 7, or “liquidation bankruptcy,” and Chapter 11, or “rehabilitation bankruptcy.”
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 comprehensive reorganization. Sole proprietorships may also be ...
Fabric and crafts retailer Joann has filed for Chapter 11 bankruptcy, as consumers cut back on discretionary spending and pandemic-era hobbies.
Individuals may file Chapter 7 or Chapter 13 bankruptcy, depending on the specifics of their situation. ; Municipalities—cities, towns, villages, taxing districts, municipal utilities, and school districts may file under Chapter 9 to reorganize. ; Businesses may file bankruptcy under Chapter 7 to liquidate or Chapter 11 to reorganize.
What is a Chapter 11 bankruptcy? Chapter 11 bankruptcy is “reorganization,” as opposed to Chapter 7 “liquidation.” It’s frequently used by corporations that need bankruptcy protection.
Terraform Labs has filed for Chapter 11 bankruptcy protection, less than two years after a collapse of the company’s cryptocurrency devastated traders around the world.
You must file all required tax returns for tax periods ending within four years of your bankruptcy filing. ; During your bankruptcy you must continue to file, or get an extension of time to file, all required returns. ; During your bankruptcy case you should pay all current taxes as they come due. ; Failure to file returns and/or pay current taxes during your bankruptcy may result in your case being dismissed.