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Simple English definitions for legal terms

bankruptcy case

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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

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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