Nobody downloaded yet

Bankruptcy Law - Essay Example

Comments (0) Cite this document
Summary
Bankruptcy allows those in debt, either an individual or a business, to have most of the debts discharged and allow the rights of the creditors to be protected as well. This essay will discuss the following bankruptcy situations:
Case # 1: A woman is the sole proprietor of a small business that is about to fail…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.6% of users find it useful
Bankruptcy Law
Read TextPreview

Extract of sample "Bankruptcy Law"

Download file to see previous pages Each case can file any of these types of bankruptcy, however, a specific chapter may be better suited for each individual case.
Chapter 11 is mainly bankruptcy for business and its purpose is to reorganize the debt of the business. Reorganization divides the credit accounts into different classes and assets are then liquefied and distributed. The debtor can devise a plan of reorganization for the approval of the court within a 120-day deadline or the debtor can request a court appointed trustee to plan the reorganization. This chapter of bankruptcy allows the business to continue to operate during the bankruptcy under the supervision of Bankruptcy Court. Chapter 11 allows for liquidation of the business assets that are not immediately needed for the operation of the business and a plan for payment of the assets needed for the operation of the business. This will allow the sole proprietor in this case to stay in business and she can change her business to a more suitable and profitable business under the supervision of the court while at the same time eliminating the majority of her debt.
In this case, the debtor should file chapter 7 bankruptcy. The debtor is assigned a trustee who liquidates assets and then divides the proceeds fairly among the creditors. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Bankruptcy Law Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Bankruptcy Law Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/law/1516203-bankruptcy-law
(Bankruptcy Law Essay Example | Topics and Well Written Essays - 500 Words)
Bankruptcy Law Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/law/1516203-bankruptcy-law.
“Bankruptcy Law Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/law/1516203-bankruptcy-law.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Bankruptcy Law

Consumer behavior and pruchasing decisions

11 Pages(2750 words)Essay

Bankruptcy

... Teacher’s 15th April Bankruptcy Laws Businesses are profit-seeking enterprises comprising of an individual, an association of persons, or a corporation indulged in activities of commerce – manufacturing concerns or services (Preston, Fryer, and Watson). Such activities require several transactions to be made on credit basis. The receiver of credit is called the debtor, whereas the giver of credit is called the creditor. Especially in America, the general reliance of business transactions on credit has been dominant.This reliance has emphasized the need for bankruptcy laws and laws governing the dismissal of debt. At times, due to poor planning or other reasons, debtors are unable to plan their financial transactions well, leading... to an...
9 Pages(2250 words)Research Paper

Bankruptcy prediction

...of 96% one period prior to bankruptcy to 70% five annual reporting periods prior. Ohlson (1980) also developed a bankruptcy prediction model with logit analysis using a number of bankruptcy firms that were traded on NYSE and AMSE during the 1970s. Begley Joy et al (1997) critised the estimation models of Altman (1968) and Ohlson (1980) were not performed well by using 1980's data. Their empirical research found consistent hypotheses which are: not only debt usage increases Type II (misclassification a non-bankrupt firm as bankrupt) errors but also bankruptcy law changes in 1980's increase Type I (misclassification a bankrupt as non-bankrupt) error when...
13 Pages(3250 words)Research Paper

EU and US Bankruptcy Law

...[The [The [The EU and US Bankruptcy Law Introduction Concrete systems of law conclude culturalvarieties of the societies in which they operate. For instance UK is considered to be creditor-friendly authority for it floats for mandatory commence insolvency that allows providers of finance to keep them aloof from the consequences of a debtor's collapse knows nothing of debtor in possession . This case is hardly astounding given the opaque concern of wellbeing of debtors in the UK. In the United States, on the contrary, the right of a debtor to restore itself has for eras been seen as greater to the right of a creditor to look for and obtain refund in full of what it is payable. The...
20 Pages(5000 words)Essay

History of Bankruptcy and Law Practices

...his bank then this would be referred bancus raptus which means broken bank which is today referred to as bankruptcy. Bankruptcy laws were put in place to protect creditors. The laws encourage payment of debts to creditors, however recently the amendments have also helped protect individual debtors through the various acts present. It ensures that creditors recover their owed amount through the sale of the debtors' assets or through installments over a given period of time. Bankruptcy process: There is a procedure that is followed by whether the debtor or creditors when filing a petition, the first step is that the court receives the petition either...
8 Pages(2000 words)Essay

Bankruptcy

...Bankruptcy indicates the declaration of ineligibility from the company to repay its debt to creditors, and is filed in the court of law. In another way when the company are unable to make payments to the creditors then they can file bankruptcy protection in the court of law. From an individual's point of view, if he or she declares bankruptcy the court of law discharges the debt or repays the debt after selling the property or makes an appropriate plan to repay the debt. From the company's perspective, if the company files bankruptcy protection in the court of law then the court assign an agent to the...
4 Pages(1000 words)Essay

Personal Bankruptcy

...Essay What were the major reforms made to federal bankruptcy laws in 2005? The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 have introduced major changes in the debtor-creditor relations. The section 106 of the Act makes it necessary for those who are to submit a petition under Liquidation (chapter 7) or wage earner plan (chapter 13) to have received credit counseling from those who have been approved by the Bankruptcy trustee which would essentially brief the petitioner about the alternatives and economic issues related to bankruptcy. Section 102 of the Act also requires the attorneys representing the petitioner to have conducted a...
2 Pages(500 words)Essay

Bankruptcy

... not consider such a person for future credit. In the same way, bankruptcy greatly affects the interest rates on loans received from financial institutions. In fact, there is considerable differences in the interest rates changed on people who have filed for bankruptcy and those who have not. Bankruptcy greatly increases the interest rates as financial institutions seek to eliminate any risks associated with failure to pay. References Allen, S. C. (2008). Bankruptcy law. New York: Chelsea House.... Chapter 7 bankruptcy also known as liquidation bankruptcy is the common bankruptcy chapter across the United States. It usually involves a trustee selling a debtor’s non-exempt assets and turning...
1 Pages(250 words)Research Paper

Bankruptcy

...Bankruptcy Bankruptcy can be defined as a process with which a business can eliminate or repay part of or all debt, but under the safeguard of the federal bankruptcy court (Cross & Miller, 2011, p. 371). Accordingly the Bankruptcies are categorized into two: the Liquidation and the reorganization types. The two categories engross the five bankruptcy types: chapter7-Liquidation, chapter 13-individual debt adjustment, chapter 11-reorganisation, chapter 12-Family farmer, and chapter 9- municipality (Distenfield, 2005, p. 47). All five chapters are distinct as each defines each obligation of debtors and as determined by bankruptcy courts. Chapter 7 Bankruptcy is also known as straight bankruptcy in which an individual or a corporation... will...
2 Pages(500 words)Essay

Bankruptcy

...ability to the working staff to become decisive on whether to invest more in the company or just simply stop. It allows the subordinates to know the conditions in which they are going to work (Miller 2012). If I came to know that my company is about to collapse then the first sensible thing to do is to file bankruptcy. Filing bankruptcy will allow me to get creditors off my back or negotiate with them to get a settlement in order to return only a certain percentage of the amount of money owed by the company. It also gives a certain time period in which the creditors will not be able to take any action against the company which will buy the entrepreneur some time to find new sources of...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Bankruptcy Law for FREE!

Contact Us