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 ?
In theory, a debtor has many options as to where it may initiate bankruptcy proceedings. These include: (1) its state of incorporation, (2) the location of its headquarter, (3) the jurisdiction where the company holds substantially all of its employees and day-to-day operations, and (4) the locale in which the debtor's primary assets are located.
Moreover, to ensure clarity and fairness of judgment, more than one judge may be appointed to oversee the bankruptcy proceedings and look into applications and reports.
The agreement was subject to review by a judge in November, will put an end to four years of bankruptcy proceedings and also protect the archdiocese from future abuse claims.
"It is expected that, if the bankruptcy proceedings commence, an investigation regarding the liability of the representative director of the company will be conducted as part of the bankruptcy proceedings," it said.
Kodak's Middle East operations will now have a new identity by the name of Kodak Alaris, after emerging from the shadow cast by bankruptcy proceedings of the parent company Eastman Kodak Co.
In June 2006, the ECJ had ruled that there was an incompatibility with the cancellation of part of Frucona Kosice's tax debt - set at 11 million - in bankruptcy proceedings. The company challenged the decision before the EU General Court, which dismissed the appeal (Case T-11/07).
A court in the capital, Podgorica, started bankruptcy proceedings against KAP on July 8, after it failed to pay 61 million euros ($80 million) in electricity bills, while VTB Bank OJSC (VTBR) and OTP Bank Plc activated state guarantees on KAP loans.
FEARS over Hearts' future took a fresh twist yesterday when it emerged an appeal has been launched against bankruptcy proceedings started on owner Vladimir Romanov's Ukio Bankas.
But Conwy is equally insistent that it owns the pier, having bought it for PS36,000 in March last year - using a grant from the Welsh Government - after it was transferred to the Crown Estate following bankruptcy proceedings against Mr Hunt.
Bankruptcy proceedings in Macedonia last two years with which we are getting closer to the average of the countries of OECD (Organzation for Economic Cooperation and Development) where the bankruptcies end in 1,7 years.
22 January 2013 - US lockers and storage racks maker Lyon Workspace Products LLC said it would seek bids for substantially all of its assets as part of bankruptcy proceedings.
27 that all efforts need to be devoted to make the Snoras bankruptcy proceedings transparent, legal and efficient to protect the interests of taxpayers, reports ELTA.