Friday, December 10, 2010
What is a pre packaged bankruptcy?
A prepackaged bankruptcy plan is negotiated with and approved by the shareholders and creditors of the company before it is filed with the Securities and Exchange Commission (SEC). These types are 11 bankruptcy under chapter of the U.S. Bankruptcy Code. BenefitsAccording in place practical Ohio law matters is the main advantage of a prepackaged bankruptcy faster, annoying being less than ordinary Chapter 11 proceedings. Pre packaged bankruptcy work best, when there are a limited number of creditors. These cases will take usually six months; other bankruptcy can take two or three years complete.WarningAccording at the Faculty of law, Santa Clara, automatic suspension is an order of the Court of Justice following the submission of a bankruptcy, issued, which prohibits any activity collection of creditors immediately. Bankruptcy units will go directly to the phase of the confirmation of the plan; the debtor loses the fate "breathe" provided by the automatic suspension. Bankruptcy pre-packaged stuff can also off the coast of the financial problems not obvious.ProcessThe code can be bankruptcy of creditors to solicit votes against creditors before the prepackaged bankruptcy petition as long as certain conditions are submitted. The plan must be distributed to all creditors and have enough time to test it. The plan must comply with all other federal laws, including laws on security.
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