Ero sivun ”Bankruptcy” versioiden välillä

Nykyinen versio 8. tammikuuta 2013 kello 15.11

A legal proceeding involving a person or small business which is struggle to pay back outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of lenders (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to repay some of outstanding debt. After the successful completion of bankruptcy proceedings, the debtor is relieved from the debt obligations incurred before filing for bankruptcy.

Bankruptcy laws help people who can no longer pay their creditors get a fresh start - by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also safeguard troubled firms and provide for orderly distributions to business creditors through reorganization or liquidation. Theoretically, the capability to file for bankruptcy can benefit an overall economy by giving persons and businesses one more chance and providing creditors with a measure of debt repayment.

Bankruptcy filings in the United States can fall under one of many chapters in the Bankruptcy Code, such as Chapter 7 (which involves liquidation of assets), Chapter 11 (company or individual "reorganizations") and Chapter 13 (debt repayment with reduced debt covenants or payment plans). Bankruptcy filing specifications vary widely among various countries, leading to higher and lower filing rates based on how easily a person or business can finish the process.

Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), which allows Congress to enact "uniform laws on the subject of bankruptcies throughout the United States". The Congress has enacted statutes governing bankruptcy, mainly in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.

While bankruptcy cases are usually filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a significant role in several bankruptcy cases, and it is often not possible to generalise bankruptcy law throughout state lines.

Generally, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. Generally, when a debtor files a voluntary petition, his or her bankruptcy case commences.

The purpose of bankruptcy is two fold:

(1) to offer the debtor (the party filing bankruptcy) a fresh start and

(2) to pay creditors in an orderly manner. Bankruptcy is governed by federal law which often trumps state law when it comes to the actions of both the debtor and creditors.