Overview of Bankruptcy

Bankruptcy is a federal body of law concerning the relationship between a debtor and creditors. Specifically, bankruptcy law provides several methods for a debtor to recover from financial situations that are overwhelming to the individuals continued well-being or existence. The bankruptcy process differs for individuals and businesses. 

This chapter introduces the bankruptcy system. It introduces the applicable bankruptcy laws and key provisions. It begins by explaining the types of bankruptcy Chapters 7, 11, and 13. It then explains the method for initiating and processing a bankruptcy filing. It explores the role of the debtor, creditors, bankruptcy court, and trustee and the rights of each during the bankruptcy process. This includes the trustee or debtor in possessions right to stop collection efforts; the right to dis-affirm contracts; the right to recover certain prior payments made to creditors, etc. 

A key concept throughout the bankruptcy process is the priority of secured and unsecured creditors. Lastly, it explains the rights and obligations of the parties at the conclusion of the bankruptcy process.

Related Topics

• Bankruptcy Law (Intro)
• What is Bankruptcy?
  • Insolvency - Definition
• What are the types of business bankruptcy?
  • Chapter 9 Bankruptcy
  • Chapter 12 Bankruptcy
  • Chapter 15 Bankruptcy  

• Bankruptcy Process

  • Who are the participants in the bankruptcy process?
  • Key concepts behind the bankruptcy process?
    • Absolute Priority Rule
    • Pari Passu
  • What rules govern the bankruptcy process?
    • US Bankruptcy Code
    • Bankruptcy Abuse Prevention and Consumer Protection Act
    • American Bankruptcy Institute Definition
  • What the authority of the bankruptcy court?
  • What is the authority of the trustee (debtor in possession) in bankruptcy?
    • Debtor in Possession
  • What assets of the debtor are included in the bankruptcy estate?
    • Bulk Sales Law
  • What is the automatic stay in bankruptcy?
  • What is a claim by creditors of the bankruptcy estate?

• What is voluntary and involuntary bankruptcy?

• Business Bankruptcy Process

• What is the Chapter 7 bankruptcy process?
• What is the Chapter 11 bankruptcy process?
• How to File Bankruptcy for a Business
  • Accept or reject contracts?
  • Avoiding powers?
  • Stay of Proceeding?
  • Use of Business Assets?
  • Post-Petition Financing?
    • Bankruptcy Financing - Definition

• Finalizing the Bankruptcy Process

• What is the appointment of a Trustee or Examiner in business bankruptcies?

• What is a Plan of Reorganization?
• Reorganization - Definition
• Subordinated Debt
• Preferred Debt
• What is Cramdown of a reorganization plan?
• To what extent does the bankruptcy process relieve a debtor's debts?