Bankruptcy code

Bankruptcy Code is a legal statute in the United States that provides guidelines and regulations for individuals and corporations to declare bankruptcy. The Bankruptcy Code is codified as Title 11 of the United States Code, and it has been amended several times since its enactment in 1978.

Overview

The Bankruptcy Code provides for six types of bankruptcy cases: Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13, and Chapter 15. Each chapter of the Bankruptcy Code is tailored to a specific type of debtor, and each provides different methods for resolving debts and distributing assets.

Chapters of the Bankruptcy Code

Chapter 7

Chapter 7 of the Bankruptcy Code provides for "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.

Chapter 9

Chapter 9 of the Bankruptcy Code provides for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts).

Chapter 11

Chapter 11 of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership.

Chapter 12

Chapter 12 of the Bankruptcy Code provides for adjustment of debts of a "family farmer" or "family fisherman" as those terms are defined in the Bankruptcy Code.

Chapter 13

Chapter 13 of the Bankruptcy Code provides for adjustment of debts of an individual with regular income.

Chapter 15

Chapter 15 of the Bankruptcy Code is designed to deal with cases of cross-border insolvency.

See also

• Bankruptcy
• Bankruptcy in the United States
• Chapter 7, Title 11, United States Code
• Chapter 11, Title 11, United States Code
• Chapter 13, Title 11, United States Code