This chapter of the Bankruptcy Code provides for "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.
This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.
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.
The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," or a "family fisherman" as those terms are defined in the Bankruptcy Code.
A Debtor is a person or legal entity (such as a corporation or an LLC) that has filed a Petition for bankruptcy relief or is the subject of an involuntary bankruptcy Petition.
The Estate is a legal entity that is created when an individual or business files for bankruptcy under any chapter. It includes all of the Debtor’s legal and equitable interest in property at the time of filing, and in the case of Reorganization, it usually includes post-filing Assets. The concept of a bankruptcy estate is crucial as it determines what resources are available to pay Creditors.
A Discharge is a court order that releases a Debtor from the obligation to pay certain debts. This allows the Debtor to get a fresh financial start, free from the legal responsibility for those discharged debts. Once a Discharge order has been given, Creditors are prohibited from taking any action to collect on discharged debts.
