bankruptcy definition
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JURISPRUDENCE bankruptcy - a legal process intended to insure equality among the creditors of a corporation declared to be insolvent legal proceeding, proceeding, proceedings - (law) the institution of a sequence of steps by which legal judgments are invoked
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Bankruptcy About Bankruptcy. Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.
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Default (finance) The term default should be distinguished from the terms insolvency and bankruptcy.  1 Default essentially means a debtor has not paid a debt which he or she is required to have paid.  2 Insolvency is a legal term meaning that a debtor is unable to pay his or her debts. Illiquidity describes the fact that the debtor has only insufficient cash to pay his or her debts. Bankruptcy is a legal finding that imposes court supervision over the financial affairs of those who are insolvent or in default.
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What Does it Mean to Be Legally Blind Bankruptcy is a financial maneuver undertaken by individuals in the midst of financial insolvency. When a financially-distressed person files for bankruptcy, the individual is formally attempting to consolidate or mitigate their exposure to debt.
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- Bankruptcy helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.This section explains the bankruptcy process and laws.bout Bankruptcy. Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court.
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Legal Terms Chapter 11 - Bankruptcy Basics. This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11. Background
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Legal Terms The chapter of the Bankruptcy Code providing for liquidation that is, the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors. in order to be eligible for this, the debtor must satisfy a means test. The court will evaluate the debtor's income and expenses to determine if the debtor may proceed under this
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The case for Indigenous self-determination Bankruptcy is a matter of federal law and is, with the exception of exemptions, the same in every state. When federal bankruptcy law conflicts with state law, federal law controls. Bankruptcy Code incorporating changes effective 10/17/05.
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Bankruptcy in the United States In the United States, bankruptcy is governed by federal law. The United States Constitution (Article 1, Section 8, Clause 4) authorizes Congress to enact uniform Laws on the subject of Bankruptcies throughout the United States..
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What is 'Chapter 11' Named after the U.S. bankruptcy code 11, Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs and assets. It is generally filed by corporations which require time to restructure their debts.
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Reaffirmation agreement Reaffirmation agreement. A reaffirmation agreement in United States bankruptcy law refers to an agreement made between a creditor and the debtor that waives discharge of a debt that would otherwise be discharged in the pending bankruptcy proceeding.
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Legal Terms Glossary Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt.
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Common Questions Regarding Chapter 13 Bankruptcy A Chapter 13 bankruptcy case is a proceeding under Federal law in which the debtor seeks relief from creditors. Chapter 13 allows a person to repay all or a portion of his or her debts under the supervision and protection of the bankruptcy court.
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- Bankruptcies can generally be described as liquidation (Chapter 7) or reorganization (Chapter 13). Under a Chapter 7 bankruptcy, you ask the bankruptcy court to wipe out (discharge) the debts you owe.
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The Debt Discharge in Bankruptcy FAQ What is a discharge in bankruptcy? A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts.
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- DEFINITION of 'Liquidation'. 1. When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors.Any leftovers are distributed to shareholders.2.Any transaction that offsets or closes out a long or short position.. When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders. 2. Any transaction that offsets or closes out a long or short position.
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Understanding Bankruptcy Bankruptcy is a set of federal laws and rules that can help individuals and businesses who owe more debt than they can pay. Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court.
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Getting Here Fly. Southwest Florida International Airport (RSW) , the region's largest airport, is just 40 minutes to the north in Fort Myers via I-75. Most major domestic airlines serve the airport, along with Air Berlin direct from Germany. The airport has a newly expanded terminal.
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Bankruptcy Definition: What Exactly Is It? Bankruptcy is a generalized term for a federal court procedure that helps consumers and businesses get rid of their debts and repay their creditors. If you can prove that you are entitled to it, the bankruptcy court will protect you during your bankruptcy proceeding.
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Bankruptcy Bankruptcy is not the only legal status that an insolvent person or other entity may have, and the term bankruptcy is therefore not a synonym for insolvency.
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- In a Chapter 7 bankruptcy, a debtor files court papers asking that certain unpaid debts be wiped out or discharged. A debtor is a person who owes money to someone else. The debtor is allowed to keep some of their income and property.
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Bankruptcy Law - Chapter 7, 11, 13 Know Your Rights! 1  Common Questions About Bankruptcy Bankruptcy is a legal proceeding that helps some people who cannot pay their bills get a fresh financial start by temporarily, or permanently, preventing creditors from collecting debts from you.
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- Bankruptcy is a process in which consumers and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. For the most part, bankruptcies can be divided into two types -- liquidation and reorganization. Chapter 7 bankruptcy comes under the liquidation category.
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bankruptcy Two major objectives of a bankruptcy are (1) fair settlement of the legal claims of the creditors through an equitable distribution of debtor's assets, and (2) to provide the debtor an opportunity for fresh start. Bankruptcy amounts to a business-failure, but voluntary winding up does not. See also insolvency.
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Bankruptcy Chapter 7 is the most common form of bankruptcy for individuals. It is a liquidation bankruptcy, which means that the court sells all your assets for cash and then pays your creditors. You can keep assets that are exempt from sale either under federal law or the law of your home state. Chapter 7 bankruptcy can wipe out most of your debts.
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debt Legal Definition of debt. 1  1 : something owed: as a : a specific sum of money or a performance due another especially by agreement (as a loan agreement) to pay the debts…of the United States — U.S. Constitution art.