Peirce College Bankruptcy and Restructuring Discussion

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DISCUSSION: BANKRUPTCY AND RESTRUCTURING

Research the following chapters on bankruptcy: 7, 9, 11, & 13.

Post a clear and logical response in 150 to 200 words to the following, providing specific examples to support your answers:

  • Discuss the specifics of each type of bankruptcy, including the pros and cons.

Note: Initial answers to the questions are due by 11:59 p.m. (Eastern time) on Thursday.

Respond to at least 3 students in a manner that is thought provoking and that appropriately challenges or elevates the discussion.

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Hi. Please find the document attached. Thank you.

1

Bankruptcy and Restructuring

Student’s First Name, Middle Initial(s), Last Name
Institutional Affiliation
Course Number and Name
Instructor’s Name and Title
Assignment Due Date

2

Bankruptcy and Restructuring
Chapter 7 Bankruptcy
Popularly known as liquidation bankruptcy, chapter 7 filing entails disposal of nonexempted assets owned by a debtor to pay creditors. Since chapter 7 filing entails liquidation of
non-exempt assets, it does not offer debt restructuring as an option to filers (Administrative
Office of the U.S. Courts, n.d a.). Chapter 7 filing is mainly utilized by individuals seeking
protection or business entities forced to liquidate operations by creditors. The process of filing
for Chapter 7 bankruptcy protection requires debtors petitioning the court to have undergone
credit filing within the last 180 days of filing (Administrative Office of the U.S. Courts, n.d a.).
Other than restraining orders often granted to debtors against a compulsory collection of debt by
creditors, chapter 7 filing also releases individuals from future personal liability once the process
has been completed (Administrative Office of the U.S. Courts, n.d a.). The main disadvantage of
chapter 7 filing is the fact that credit reports will contain bankruptcy filing instances for 10 years.
Chapter 9 Bankruptcy
Chapter 9 bankruptcy protection is designed for municipalities that experience difficulties
meeting debt obligations during periods of economic d...


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