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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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Rentech Files For Chapter 11 Bankruptcy Protection Quick Facts Nasdaq
Rentech Files For Chapter 11 Bankruptcy Protection Quick Facts Nasdaq Rentech, Inc. RTKH.OB, an owner and operator of wood fibre processing and wood pellet production businesses, said that the company and its subsidiary, Rentech WP U.S. Inc. have filed a voluntary petition for relief under Chapter 11 of and more raquo

US Trustee Challenges Global Brokerageaposs Chapter 11 Bankruptcy Plan Finan...
FinanceFeeds blog US Trustee challenges Global Brokerage39s Chapter 11 bankruptcy plan FinanceFeeds blog When Global Brokerage Inc OTCMKTS:GLBR, formerly known as FXCM Inc, filed for Chapter 11 bankruptcy, it said it anticipated to expedite the process. The situation, however, has turned out to be more complex with the first signs of a potential and more raquo

Bankrupt Westinghouse Finds A Buyer Greentech Media
Greentech Media Bankrupt Westinghouse Finds a Buyer Greentech Media Along with those investments, the Westinghouse deal adds depth to Brookfield39s growing portfolio of power assets acquired at rock bottom prices. In a release on the Westinghouse agreement, Brookfield called Westinghouse an iconic American company and and more raquo

Corporate Insolvency Resolution Process Under Insolvency And Bankruptcy Code ...
Corporate Insolvency Resolution Process Under Insolvency And Bankruptcy Code And The Dilemma Surrounding Live Law The argument that the guarantor cannot be treated differently from the principal debtor for the purposes of the Code has gained momentum primarily after the decision of Hon39ble Allahabad High Court in Sanjeev Shriya v. State Bank of India amp others8

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Facts of Law explaining what is the purpose of bankruptcy

Facts of Law - The Purpose of Bankruptcy