What happens in a Chapter 9 bankruptcy?
Chapter 9 is a bankruptcy proceeding that provides financially distressed municipalities with protection from creditors by creating a plan between the municipality and its creditors to resolve the outstanding debt.
What is the difference between Chapter 9 and 11?
The main difference between Chapter 9 and Chapter 11 bankruptcies is who can use them. While Chapter 9 applies to certain government entities, Chapter 11 bankruptcy allows a business or individual to reorganize its debts and obligations.
What is a 363 sale in bankruptcy?
A procedure under Section 363(b) of the Bankruptcy Code that allows a company to sell its assets outside of the ordinary course of business during bankruptcy proceedings.
What is a 727 in bankruptcy?
Section 727 prevents discharge of the debtor where the debtor has fraudulently transferred assets to hinder, delay, or defraud creditor or officer of the estate.
Does bankruptcy prevent utility termination?
Filing for bankruptcy will stop a utility from disconnecting service for 20 days, and longer if you can come up with adequate assurance of payment. Learn more. Chapter 7 bankruptcy can provide immediate relief if you are in danger of a utility shut-off, including your gas, electricity, water, or even telephone.
What happens after chapter11?
After a Chapter 11 plan is confirmed by the court, the plan must be implemented and carried out, either by the debtor or by the successor to the debtor under the plan. If the plan calls for the debtor to be reorganized or for a new corporation to be formed, this function must be carried out first.
When a debtor no longer has an obligation to pay a debt that debt has been?
The debtor will no longer be personally liable for the debts and therefore has no legal obligation to pay discharged debt. In most cases, creditors are also unable to take collection action against the debtor if the debt has been discharged. Some common dischargeable debts include credit card debt and medical bills.
What is a stalking horse buyer?
In bankruptcy cases, a stalking-horse bid refers to a deal with a potential buyer that is hidden from the public, creditors, and the courts. Usually, when a company is preparing to file bankruptcy, it chooses an entity from a pool of interested bidders to make the first bid to buy the company’s assets.
Can bankruptcy discharge be reversed?
Filing a Petition to Revoke a Discharge Only an interested party can file a revocation petition with the bankruptcy court. That means the petition can be filed by the bankruptcy trustee, a creditor, or the United States Trustee. There are time limits within which a revocation petition must be filed.
When did Chapter 9 of the Bankruptcy Code change?
The changes made in 1976 were adopted nearly identically in the modern 1978 Bankruptcy Code as Chapter 9. In 1988, Chapter 9 was amended by Congress to provide statutory protection from § 552(a) lien stripping provisions to revenue bonds issued by municipalities.
What are some examples of Chapter 9 bankruptcies?
On July 18, 2013, Detroit, Michigan became the largest city in the history of the United States to file for Chapter 9 bankruptcy protection. Jefferson County, Alabama, in 2011, and Orange County, California, in 1994, are also notable examples.
What are some Chapter 9 bankruptcy petitions that were filed but voluntarily dismissed?
Chapter 9 bankruptcy petitions that were filed but voluntarily dismissed 1 Richmond Unified School District, California, 1991 After the District filed its petition, the state loaned the District… 2 Mammoth Lakes, California on July 3, 2012 The city lost a $43 million lawsuit, but its bankruptcy case was voluntarily… More
What is Chapter 9 Title 11 bankruptcy?
Chapter 9, Title 11, United States Code is a chapter of the United States Bankruptcy Code, available exclusively to municipalities and assisting them in the restructuring of their debt.