Tag Archives: automatic
Chapter 11
Thursday, May 6, 2010 // 0 Comments // Tax Law
Chapter 11 bankruptcy allows businesses to reorganize and institutes an automatic stay, which is essentially a government-mandated order to prevent creditors from acting to collect debts. When an entity enters Chapter 11, it can begin negotiations with creditors and develop a plan to reorganize. Chapter 11 is appropriate if the entity in question is not [...]
Read more & Talk about itChapter 7
Thursday, May 6, 2010 // 0 Comments // Tax Law
Under Chapter 7, the debtor filing for bankruptcy has expenses that exceed income. The debtor may have become insolvent for various reasons, including unemployment, medical bills, lawsuits, or economic hardships. When debtors reach this point of insolvency, it means that they’re unable to pay back their debts. A Chapter 7 filing is essentially a liquidation [...]
Read more & Talk about itBankruptcy
Thursday, May 6, 2010 // 0 Comments // Tax Law
Bankruptcy is designed to give individuals and businesses a chance to start over, without the burdens of debts they’re unable to pay. Bankruptcy proceedings operate under the assumption that debtors have made a good faith attempt to pay creditors. To meet the varied needs of entities filing for bankruptcy, there are several categories, called chapters, [...]
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