BANKRUPTCY
THE LONG AND THE SHORT OF ITWHAT IS BANKRUPTCY?
Bankruptcy may well be the shelter from the financial storm you are looking for. Bankruptcy is a federal legal proceeding that affords relief to the honest debtor (person or business enterprise) facing serious financial obstacles. A person or business files bankruptcy in order to obtain some form of financial relief – either by way of discharge (debt forgiveness) or financial restructuring.
WHAT ARE THE DIFFERENT TYPES OF BANKRUPTCY?
The Bankruptcy Code is comprised of several chapters. Each chapter of the Bankruptcy Code after chapter 5, addresses a different type of bankruptcy. As such there are presently 6 different types of bankruptcy: Chapter 7(liquidation or straight bankruptcy), Chapter 9 (municipality bankruptcy), Chapter 11 (business reorganization), Chapter 12 (family farmer reorganization), Chapter 13 (wage earner reorganization), and Chapter 15 (cross-border bankruptcy). As you can likely guess, the most common bankruptcies are Chapter 7, Chapter 11, and Chapter 13.
CHAPTER 7
While a vast majority of Chapter 11 bankruptcy cases are filed by business enterprises (sole proprietorships, farmers, ranchers, partnerships, limited liability companies, and corporations) an individual wage earner may also file for relief under Chapter 11 (individual wage earners will usually file Chapter 11 where they do not qualify for Chapter 13). The primary objective of Chapter 11 is to allow the Debtor to continue operating a business while reorganizing its finances. The basic rule is that the debtor may continue to operate the business enterprise and manage its property in the ordinary course of business as a “debtor in possession.” The Debtor in Possession, in the ordinary course of events, retains management control and has certain additional powers not otherwise available. For example, a Debtor in Possession is able to reject executor contracts (leases) and recover certain pre-petition transfers.
While a vast majority of Chapter 11 bankruptcy cases are filed by business enterprises (sole proprietorships, farmers, ranchers, partnerships, limited liability companies, and corporations) an individual wage earner may also file for relief under Chapter 11 (individual wage earners will usually file Chapter 11 where they do not qualify for Chapter 13). The primary objective of Chapter 11 is to allow the Debtor to continue operating a business while reorganizing its finances. The basic rule is that the debtor may continue to operate the business enterprise and manage its property in the ordinary course of business as a “debtor in possession.” The Debtor in Possession, in the ordinary course of events, retains management control and has certain additional powers not otherwise available. For example, a Debtor in Possession is able to reject executor contracts (leases) and recover certain pre-petition transfers.
While a vast majority of Chapter 11 bankruptcy cases are filed by business enterprises (sole proprietorships, farmers, ranchers, partnerships, limited liability companies, and corporations) an individual wage earner may also file for relief under Chapter 11 (individual wage earners will usually file Chapter 11 where they do not qualify for Chapter 13). The primary objective of Chapter 11 is to allow the Debtor to continue operating a business while reorganizing its finances. The basic rule is that the debtor may continue to operate the business enterprise and manage its property in the ordinary course of business as a “debtor in possession.” The Debtor in Possession, in the ordinary course of events, retains management control and has certain additional powers not otherwise available. For example, a Debtor in Possession is able to reject executor contracts (leases) and recover certain pre-petition transfers.
CHAPTER 13
While a vast majority of Chapter 11 bankruptcy cases are filed by business enterprises (sole proprietorships, farmers, ranchers, partnerships, limited liability companies, and corporations) an individual wage earner may also file for relief under Chapter 11 (individual wage earners will usually file Chapter 11 where they do not qualify for Chapter 13). The primary objective of Chapter 11 is to allow the Debtor to continue operating a business while reorganizing its finances. The basic rule is that the debtor may continue to operate the business enterprise and manage its property in the ordinary course of business as a “debtor in possession.” The Debtor in Possession, in the ordinary course of events, retains management control and has certain additional powers not otherwise available. For example, a Debtor in Possession is able to reject executor contracts (leases) and recover certain pre-petition transfers.
While a vast majority of Chapter 11 bankruptcy cases are filed by business enterprises (sole proprietorships, farmers, ranchers, partnerships, limited liability companies, and corporations) an individual wage earner may also file for relief under Chapter 11 (individual wage earners will usually file Chapter 11 where they do not qualify for Chapter 13). The primary objective of Chapter 11 is to allow the Debtor to continue operating a business while reorganizing its finances. The basic rule is that the debtor may continue to operate the business enterprise and manage its property in the ordinary course of business as a “debtor in possession.” The Debtor in Possession, in the ordinary course of events, retains management control and has certain additional powers not otherwise available. For example, a Debtor in Possession is able to reject executor contracts (leases) and recover certain pre-petition transfers.
CHAPTER 11
While a vast majority of Chapter 11 bankruptcy cases are filed by business enterprises (sole proprietorships, farmers, ranchers, partnerships, limited liability companies, and corporations) an individual wage earner may also file for relief under Chapter 11 (individual wage earners will usually file Chapter 11 where they do not qualify for Chapter 13). The primary objective of Chapter 11 is to allow the Debtor to continue operating a business while reorganizing its finances. The basic rule is that the debtor may continue to operate the business enterprise and manage its property in the ordinary course of business as a “debtor in possession.” The Debtor in Possession, in the ordinary course of events, retains management control and has certain additional powers not otherwise available. For example, a Debtor in Possession is able to reject executor contracts (leases) and recover certain pre-petition transfers.
While a vast majority of Chapter 11 bankruptcy cases are filed by business enterprises (sole proprietorships, farmers, ranchers, partnerships, limited liability companies, and corporations) an individual wage earner may also file for relief under Chapter 11 (individual wage earners will usually file Chapter 11 where they do not qualify for Chapter 13). The primary objective of Chapter 11 is to allow the Debtor to continue operating a business while reorganizing its finances. The basic rule is that the debtor may continue to operate the business enterprise and manage its property in the ordinary course of business as a “debtor in possession.” The Debtor in Possession, in the ordinary course of events, retains management control and has certain additional powers not otherwise available. For example, a Debtor in Possession is able to reject executor contracts (leases) and recover certain pre-petition transfers.
SUBCHAPTER V OF CHAPTER 11
While a vast majority of Chapter 11 bankruptcy cases are filed by business enterprises (sole proprietorships, farmers, ranchers, partnerships, limited liability companies, and corporations) an individual wage earner may also file for relief under Chapter 11 (individual wage earners will usually file Chapter 11 where they do not qualify for Chapter 13). The primary objective of Chapter 11 is to allow the Debtor to continue operating a business while reorganizing its finances. The basic rule is that the debtor may continue to operate the business enterprise and manage its property in the ordinary course of business as a “debtor in possession.” The Debtor in Possession, in the ordinary course of events, retains management control and has certain additional powers not otherwise available. For example, a Debtor in Possession is able to reject executor contracts (leases) and recover certain pre-petition transfers.
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Mr. Mitchell went above and beyond assisting me with my bankruptcy case. I highly recommend him for anyone considering bankruptcy.
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I picked up Bob’s message late Friday and I can’t begin to tell you the relief it brought to me and my family. My wife and I truly appreciate all the support and representation you have shown us during this difficult time. Thank you for the call Bob, it gave us much peace and joy over the weekend. Again, thank you for your support. You both have been a tremendous blessing to our family!! I will do my best to be a better steward of our family funds in the future!!
Details
Dig a Little Deeper…
chapter 7
The purpose of chapter 7 is to provide the honest individual debtor with a “fresh start” by discharging most, if not all, of the debtor’s debts. A chapter 7 discharge is available only to individuals and not to partnerships or corporations.
chapter 13
Chapter 13 is only available to individuals with regular income from any source, not just wages. The purpose of chapter 13 is to help individual debtors reorganize their finances by making payments to creditors through a Chapter 13 plan.
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12770 Coit Road, Suite 850
Dallas, Texas 75251
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