Questions and Answers
Chapter 7 is referred to as a?
In Chapter 7, the debtor's nonexempt property is?
sold for cash, the cash is distributed to the creditors, and any unpaid debts are discharged
Chapter 11 is referred to as a?
Chapter 11 provides a method for reorganizing the debtor's?
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In most Chapter 11 cases, the debtor is left in place to operate the business during the reorganization proceedings.
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Chapter 13 is referred to as a?
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Chapter 13 permits the bankruptcy court to?
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In Chapter 13, debtor must file a plan of payment that cannot exceed ______.
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In Chapter 13, a debtor's plan may be modified if?
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Study Notes
Chapter 7 Bankruptcy
- Known as liquidation bankruptcy.
- Involves the sale of the debtor's nonexempt property to generate cash.
- Proceeds from sales are distributed to creditors.
- Any remaining unpaid debts are discharged.
Chapter 11 Bankruptcy
- Referred to as reorganization bankruptcy.
- Allows for the restructuring of the debtor's financial affairs.
- Supervised by the bankruptcy court to ensure compliance.
- Generally, the debtor retains control to operate the business during the reorganization process.
Chapter 13 Bankruptcy
- Characterized as rehabilitation bankruptcy.
- The bankruptcy court oversees the debtor's repayment plan for unpaid debts.
- Plans must be filed by the debtor and typically last up to three years.
- The court may permit a maximum extension up to five years if justified.
- Debtor's repayment plan can be modified based on significant changes in circumstances.
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Description
Explore the characteristics of Chapter 7, Chapter 11, and Chapter 13 bankruptcy with these informative flashcards. Understand the key concepts of liquidation and reorganization, as well as how different bankruptcies affect debtors and creditors. Perfect for law students or anyone interested in financial law.
