Bankruptcy Midterm
Bryan Boyle
Bankruptcy Mid-Term
Question 2 –
Describe and differentiate between the various “relief” Chapters (Chapters 7, 9, 11, 12,13 & 15) which can be utilized under the Bankruptcy Code for protection, reorganization and
Liquidation. Pay particular attention to who can be a debtor in each of those chapters.
Chapter 7 – provides for liquidation proceedings or the selling of all nonexempt assets and the distribution of the proceeds to the debtor’s creditors.
Who Can Be a Debtor – Any “person” (including partnerships, corporations, and municipalities) except railroads, insurance companies, banks, savings and loan institutions, investment companies licensed by the Small Business Administration, and credit unions. Farmers and charitable institutions cannot be involuntarily petitioned. If the court finds the petition to be a substantial abuse of the use of Chapter 7, the debtor may be required to convert to a Chapter 13 repayment plan.
Chapter 9 – provides for reorganization of municipalities which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts. These are very rare although professor has dealt with one or two cases. Yonkers was not allowed to file for bankruptcy.
Chapter 11 – provides generally for reorganization, usually involving a corporation or partnership. The Chapter 11 debtor usually presents a plan to pay creditors a certain amount of cents per dollar owed in order to keep its business alive.
Who Can Be A Debtor – Any debtor eligible for Chapter 7 relief; railroads are also eligible. Individuals have specific rules and limitations.
Chapter 12 – provides for adjustment of debts of a “family farmer”, or a “family fisherman”.
Who Can Be A Debtor – Any family farmer (one whose gross income is at least 50 percent farm dependent and whose debts are at least 50 percent farm related) or family fisherman (one whose gross income is at least 50 percent dependent on
Bankruptcy Mid-Term
Question 2 –
Describe and differentiate between the various “relief” Chapters (Chapters 7, 9, 11, 12,13 & 15) which can be utilized under the Bankruptcy Code for protection, reorganization and
Liquidation. Pay particular attention to who can be a debtor in each of those chapters.
Chapter 7 – provides for liquidation proceedings or the selling of all nonexempt assets and the distribution of the proceeds to the debtor’s creditors.
Who Can Be a Debtor – Any “person” (including partnerships, corporations, and municipalities) except railroads, insurance companies, banks, savings and loan institutions, investment companies licensed by the Small Business Administration, and credit unions. Farmers and charitable institutions cannot be involuntarily petitioned. If the court finds the petition to be a substantial abuse of the use of Chapter 7, the debtor may be required to convert to a Chapter 13 repayment plan.
Chapter 9 – provides for reorganization of municipalities which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts. These are very rare although professor has dealt with one or two cases. Yonkers was not allowed to file for bankruptcy.
Chapter 11 – provides generally for reorganization, usually involving a corporation or partnership. The Chapter 11 debtor usually presents a plan to pay creditors a certain amount of cents per dollar owed in order to keep its business alive.
Who Can Be A Debtor – Any debtor eligible for Chapter 7 relief; railroads are also eligible. Individuals have specific rules and limitations.
Chapter 12 – provides for adjustment of debts of a “family farmer”, or a “family fisherman”.
Who Can Be A Debtor – Any family farmer (one whose gross income is at least 50 percent farm dependent and whose debts are at least 50 percent farm related) or family fisherman (one whose gross income is at least 50 percent dependent on