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	Consuelo Herrera, CAMS, CFE BellaOnline's Accounting Editor

Bankruptcy Basics Chapter 11 [offsite link]
Chapter 11 Reorganization Under the Bankruptcy Code The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)

Bankruptcy Basics Chapter 13 [offsite link]
A chapter 13 bankruptcy is also called a wage earner´s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor´s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause."

Bankruptcy Basics Chapter 7 [offsite link]
Chapter 7 Liquidation Under the Bankruptcy Code The chapter of the Bankruptcy Code providing for "liquidation," ( i.e., the sale of a debtor´s nonexempt property and the distribution of the proceeds to creditors.)

Bankruptcy Basics Discharge [offsite link]
A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts.

Bankruptcy Basics Process [offsite link]
The procedural aspects of the bankruptcy process are governed by the Federal Rules of Bankruptcy Procedure (often called the "Bankruptcy Rules") and local rules of each bankruptcy court. The Bankruptcy Rules contain a set of official forms for use in bankruptcy cases. The Bankruptcy Code and Bankruptcy Rules (and local rules) set forth the formal legal procedures for dealing with the debt problems of individuals and businesses.

Bankruptcy Facts [offsite link]
Have you considered bankrupcy? Make an informed decision. Seek information on banruptcy here. Watch this serie of videos and learn more. Time well spent!

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