Chapter 11 Bankruptcy Rules: Not Black And White

May 20th, 2014 | By | Category: Info

Private citizens who own a company or property, or live in the US can choose to file for Chapter 7 bankruptcy. The individual is permitted to keep certain exempt property, except if there’s a lien in place. Although the rules of exemption vary from state to state, most property liens are held in place. Other assets are liquidated by the trustee and the funds are employed to pay creditors. Any unsecured debt not fully paid off is legally discharged by the bankruptcy proceedings. In the US there are some debts that survive bankruptcy. For example child support, property taxes, income taxes less than three years old, and any restitution ordered to be paid by reason of a crime being committed.

Alice Baxter reports on Kodak’s reinvention and looks at other big names that have risen phoenix-like from the ashes. Kodak has emerged from bankruptcy having shed many of the businesses that made it famous. The company will now concentrate on selling printing equipment and services to businesses. The personal film business, which includes 105,000 photo kiosks around the world, souvenir photos at amusement parks and photographic paper, is now owned by its UK pension fund. Kodak filed for Chapter 11 bankruptcy …

THQ has filed for Chapter 11 bankruptcy, but it isn’t quite bankrupt; it has actually secured an investor and it’s ‘business as usual’. This is a little complicated, and we’re not financial journalists, so please bear with us. THQ has filed voluntary Chapter 11 proceedings — filed for bankruptcy — as part of a buyout by the Clearwater Capital Group. The move is all part of what’s called a ‘stalking horse bid’, which is when an investor makes a bid on …

QUESTION: What does the rule of uniform bankruptcy mean in the constitution?
To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

  • Article 1 (The Legislative Branch), Section 8 (Powers of Congress) states this as one of the Powers of Congress (as you have noted): To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States; When we say "Chapter 7" or "Chapter 13" Bankruptcy, these are common understandings throughout the United States. The reason this is required is because of the responsibility of the Federal Government to regulate inter-state trade. What if someone going bankrupt owes $10,000 to someone in Texas but $1,000,000 to someone in California. If the rules were different between states, people filing bankruptcy would be encouraged (if not forced) to move to the states with the most impotent regulations or enforcement. Free trade would necessarily be impacted, because people would make selling and financing decisions based on the residency of the purchaser, which of course would be subject to change. United States Code (USC) Title 11 deals with Bankruptcy Rules.

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