Bankruptcy-Part 2

Question 1

What is an example of a non-dischargeable debt?

Answer 1

A debt incurred through a fraud on a specific creditor, e.g.by making a false representation to the creditor is non-dischargeable debt.

Question 2

What is Bankruptcy chapter 7?

Answer 2

Liquidation of the debtor

Question 3

What is required in a reorganization chapter 11of the federal bankruptcy code?

Answer 3

1. A plan of reorganization must be filed
2. Each class of claimants has an opportunity to accept the plan (although it need not be accepted by all classes, such as unimpaired classes of security holders).
3. In a reorganization the plan of reorganization must be approved by the court