Federal Bankruptcy Law

Question 1

both individuals and corporations

Answer 1

sometimes encounter financial crises and business misfortune that may lead to an accumulation of debts that exceeds total assets, or they may for some other reason be unable to pay their debts when due

Question 2

bankruptcy legislations serves

Answer 2

a dual purpose
1 to bring about a quick, equitable distribution of the debtors property among her creditors and
2 to discharge the debtor from her debts, enabling her to rehabilitate herself and to start afresh

Question 3

the US bankruptcy code consists of

Answer 3

8 odd numbered chapters and one even numbered chapter

chapters 7, 9, 11, 12, and 13 provide five different types of proceedings and chaps 1, 3, and 5 apply to the other five

Question 4

chap 7 bankruptcy

Answer 4

straight or ordinary bankruptcy
provides for the liquidation and termination of the debtors business, whereas the other proceedings provide for the reorganization and adjustment of the debtors debts and the continuance of the debtors business