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Facts - Books - News    U.S. Facts Of Law:

Purpose of Bankruptcy

In the United States we do not put people in jail for non-payment of debts.  The purpose of bankruptcy is to give people and other entities, such as corporations and partnerships, a fresh start by relieving them of debts or allowing them to restructure their financial situation.

Under liquidation, the assets of the debtor are liquidated by the court and the proceeds are distributed to the creditors as payment in full for any and all debts.  The debtor is absolved of any further payment to his creditors and is given a financial fresh start.

Under reorganization, the debtor is allowed to keep his/her assets and a court approved payment plan for a reduced amount of debt and payment is enforced upon both creditor and debtor.  This gives the debtor a chance to work his/her way out of debt without harassment from creditors.


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In The IHeartMedia Bankruptcy, Expect A Major Selloff Of Radio Stations Forbes
Forbes In The IHeartMedia Bankruptcy, Expect A Major Selloff Of Radio Stations Forbes But be assured, the iHeartMedia that emerges from the prearranged bankruptcy worked out last week with creditors will be a very different companyand a lot leaner. Expect to see a dramatic shedding of radio stations, likely hundreds, many at rock and more raquo

Bankruptcy Is Bad News For Weinstein Victims Variety
Variety Bankruptcy Is Bad News for Weinstein Victims Variety The Weinstein Co. bankruptcy is bad news for victims of Harvey Weinstein39s sexual harassment, who will likely receive little or nothing in compensation from the bankruptcy estate. The company declared 500 million in debts in its filing on Monday, not Weinstein Co.39s bankruptcy could bring new wave of accusersBristol Herald Courier press release blog To Catch a PredatorNew York Magazine The Weinstein Co. Declares BankruptcyVariety The Cut all 369 news articles raquo

A Potential Shift On Education Debt Discharge Standards Lexology
A Potential Shift On Education Debt Discharge Standards Lexology To its detractors, bankruptcy law39s Brunner test, which is used to establish the dischargeability i.e., elimination of student loan debts, stands out like a sore thumb. They claim it is a relic, yet it is controlling within the majority of federal

RentAWreck Crash Into Bankruptcy Dismissed For Lack Of GoodFaith Filing Rent A Wreck Crash Into Bankruptcy Dismissed for Lack of Good Faith Filing However, not everyone is entitled to file a bankruptcy case and obtain access to such relief. To utilize the process, a debtor must file the case in good faith. The term good faith is not defined in the code. Courts have interpreted good faith to

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Facts of Law explaining what is the purpose of bankruptcy

Facts of Law - The Purpose of Bankruptcy