Definitions of bankruptcy

Bankruptcy is a simple concept with a lot of not so-simple and complex rules and definitions. Some of the most important definitions are explained below. ChapterA can debtor for different types of bankruptcy, chapter called file. Individuals and businesses can chapter of 7, 11 or 13 file. Each chapter has its own rules and the term is used to describe the chapter 7 bankruptcy results.LiquidationLiquidation. Settlement means that most of the debtor's assets is sold or "sold out" and the money is used to numbers as much of the debt of the debtor company possible.ReorganizationA bankruptcy Chapter 11 reorganization file can. The company must submit a reorganization plan that describe a chapter 13 how reorganize to generate a profit, so that the debt adjustment paid off.Debt AdjustmentDebt, can, insolvency described. Usually the debtor files a plan adjustment of debt that explains how and when your debt is the debtor to pay. Creditors are bound by the plan as long as the Court approved the plan.Automatic is the StayThis a statutory prohibition applies to all bankruptcy proceedings. Once a debtor files that all the creditors of the debtor must quit a petition in bankruptcy, all debts efforts.DischargeWhen released collection debts in bankruptcy, this means that the debtor undertakes more legally repay the debt. For all practical purposes debts never disappears and is completely inapplicable.