bankruptcy proceedings


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bankruptcy proceedings

n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party unable to meet his/her/its obligations. This petition is supposed to include a schedule of debts, assets and income potential. b) A hearing called "first meeting of creditors" with notice to all known creditors. This is usually brief and the judge assignes the matter to a professional trustee. c) Later the trustee reports and there is a determination of what debts are dischargeable, what assets are exempt, and what payments are possible. d) If there are assets available then the creditors are requested in writing to file a "creditor's claim." e) There may be other hearings, reports, proposals, hearings on claims of fraudulent debts, petitions for removing the stay on foreclosures and other matters. f) The final step is a hearing on discharge of the bankrupt, which wipes out unsecured debts (or a pro rata share of them).

Under Chapter 11 and 13 proceedings, the process will be more drawn out and can go on for years as plans are proposed, possibilities of refinancing are considered and, in effect, the debtor tries either to legitimately get out from under his/her/its financial woes or delay while current profits are made and prayers for economic salvation are made. (See: bankruptcy, claim in bankruptcy)

References in periodicals archive ?
He points out that the Federation of BiH Government expects all competent parties, especially the bankruptcy judge, to speed up the bankruptcy proceedings and allow workers to receive their claims.
Since its foundation a year ago, the Bankruptcy Committee has reduced the number of active bankruptcy proceedings by 20 percent.
Court of Appeals for the 6th Circuit, which covers cases in Kentucky where Katz filed suit, disagreed, saying a 1994 provision passed by Congress opened up states to bankruptcy proceedings.
Mourad also argued it was unfair to tax him on the income of the property during the bankruptcy proceeding since he had received no benefit from it during that time.
Bud Bunce, communications director for the archdiocese, said the proposed form is a working document that will be adjusted after consultations with other attorneys in the bankruptcy proceeding.
The debtor submitted an OIC to the IRS for $621,326, which it rejected; it would not process the offer because it does not consider OICs from persons involved in pending bankruptcy proceedings.
But Palmer failed to honour the ruling and now lawyers of the victims have begun bankruptcy proceedings against him.
To qualify to remain listed, companies would also have to retain shareholders' equity, and their market capitalization would have to stay at 1 billion yen or above after legal bankruptcy proceedings are completed, the paper said.
Statistics Norway published figures today (25 July) showing a 14% increase in bankruptcy proceedings during the first half of the year compared with the corresponding period last year.
Surveys throughout the late 1990s reported that as many as 10 percent of all nursing homes nationwide were in bankruptcy proceedings.
The business prospects and revenues also tend to degenerate with time, since some major customers still have a policy of not buying from companies in bankruptcy proceedings, and Savin's competitors liked nothing better than reminding prospects of Savin's unsettled future.
In California, where Maxicare is headquartered and where it has a significant number of enrollees (and where the bankruptcy proceedings are pending), HMOs are not considered insurance companies under state law.