CHAPTER ONE
Nature of Bankruptcy and Insolvency Proceedings
§ 1.1 OBJECTIVES
(a) Introduction
(b) Scope of Coverage
§ 1.2 Alternatives Available to a Financially Troubled Business
(a) Out-of-Court Settlements
(i) Creditors’ Committee 04
(A) Duties of Committee 05
(ii) Plan of Settlement 05
(iii) Acceptance of Plan 06
(iv) Advantages and Disadvantages 06
(b) Assignment for Benefit of Creditors
(c) Bankruptcy Court Proceedings
(d) Provisions Common to All Bankruptcy Proceedings
(i) Automatic Stay
(ii) Priorities
(iii) Discharge of Debts
(iv) Preferences
(e) Chapter 7: Liquidation
(i) Income
(ii) Deductions
(iii) Rebuttal of Presumption of Abuse
(iv) Appointment of Trustee
(f) Chapter 11: Reorganization
(i) Creditors’ Committee
(ii) Operation of Business
(iii) Disclosure Statement
(iv) Developing the Plan
(v) Confirmation of the Plan
(vi) Discharge of Debts
(vii) Advantages of Chapter 11
(viii) Prepackaged or Prenegotiated Chapter 11 Plans
(g) Chapter 12: Adjustment of Debts of a Family Farmer with Regular Annual Income
(h) Chapter 13: Adjustment of Debts of an Individual with Regular Income
(i) Operation of Business
(ii) Chapter 13 Plan
(i) U.S. Trustee
§ 1.1 Objectives
(a) Introduction
The income tax effect of certain transactions during the administration period and of tax assessments related to prebankruptcy periods can impose undue hardship on the bankrupt, who is already in a tenuous financial position. It is not uncommon for a bankrupt to realize substantial taxable income ...
