Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

bankruptcy case

Read a random definition: double insurance

A quick definition of bankruptcy case:

A bankruptcy case is a legal process where a person or a company who cannot pay their debts seeks financial relief and undergoes a supervised reorganization or liquidation of their assets for the benefit of their creditors. There are two general forms of bankruptcy: liquidation and rehabilitation. In a liquidation case, the debtor gives up all their nonexempt property and hopes to obtain a discharge. In a rehabilitation case, creditors look to future earnings of the debtor to satisfy their claims. Bankruptcy law deals with the rights of debtors who are financially unable to pay their debts and the rights of their creditors. The term bankruptcy comes from the Italian banca rotta, referring to the medieval Italian custom of breaking the counter of a financially failed merchant.

A more thorough explanation:

A bankruptcy case is a legal proceeding that begins when a debtor files a petition under a bankruptcy statute. The purpose of bankruptcy is to provide financial relief to an insolvent debtor and to supervise the reorganization or liquidation of the debtor's assets for the benefit of creditors.

There are two general forms of bankruptcy: liquidation and rehabilitation. In a liquidation case, the trustee collects the nonexempt property of the debtor, converts it to cash, and distributes the cash to the creditors. In a rehabilitation case, creditors look to future earnings of the debtor to satisfy their claims, and the debtor generally retains its assets and makes payments to creditors pursuant to a court-approved plan.

Examples of bankruptcy cases include:

  • A debtor filing for Chapter 7 bankruptcy, which is a liquidation case where the debtor gives up all nonexempt property and hopes to obtain a discharge.
  • A debtor filing for Chapter 13 bankruptcy, which is a rehabilitation case where the debtor retains its assets and makes payments to creditors from postpetition earnings.
  • Creditors filing an involuntary bankruptcy petition against a debtor who owes them money.

These examples illustrate the different types of bankruptcy cases and how they can provide relief to debtors and creditors. Bankruptcy law is a field of law that deals with the rights of debtors and creditors in bankruptcy cases.

Bankruptcy Act | bankruptcy clause

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
LSD+ is ad-free, with DMs, discounts, case briefs & more.