Chapter 11 Bankruptcy

Bankruptcy is governed only by federal law. The federal laws of the United States are “codified” within books of various groups, almost like volumes, with each volume receiving a numerical title. For example, Veterans’ Benefits are addressed in Title 38 of the U.S. Code, whereas Title 17 addresses Copyrights. Bankruptcy is found in Title 11…

1) Automatic Stay: As soon as the bankruptcy petition is filed with the court, the automatic stay goes into effect. The automatic stay prevents creditors from taking certain actions against your business. For instance, no further legal action can be brought against your business, including an attempt to collect a debt, repossess or foreclose property,…

In ancient times, relief from debt was unknown. The exception was within the Old Testament nation of Israel in which, every seventh year, debts were absolved regardless of the amount (Deut. 15). Until the last century, in most every culture, an indebted individual faced enslavement, often for life, or imprisonment until the debt was paid.…

Assets All tangible and intangible property that provides benefit, either real or potential, to its owner or potential owner. Bankruptcy A petition to place the financial affairs of an individual or a business that is having difficulties paying debts or is facing the inability to repay certain debts under the control of a bankruptcy court.…