|
|
|
If you are looking for the form B9F for chapter 11 bankruptcy re-organization you may download here: Banruptcy_Form_B9F.pdf or you may go to link here:Form B9F Chapter 11 is a chapter of the United States Bankruptcy Code which governs the process of reorganization under the bankruptcy laws of the United States. (The Bankruptcy Code itself is Title 11 of the United States Code; therefore reorganization under bankruptcy is covered by Chapter 11 of Title 11 of the United States Code.) In contrast, Chapter 7 governs the process of a liquidation bankruptcy. When a troubled business decides that it is unable to service its debt or pay its creditors, it can file (or be forced by its creditors to file) with a federal bankruptcy court for bankruptcy protection under either Chapter 7 or Chapter 11. A Chapter 7 filing means that the business intends to sell all its assets, distribute the proceeds to its creditors, and then cease operations. A Chapter 11 filing, on the other hand, is an attempt to stay in business while a bankruptcy court supervises the "reorganization" of the company's contractual and debt obligations. The court can grant complete or partial relief from most of the company's debts and its contracts, so that the company can make a fresh start. Often, if the company's debts exceed its assets, then at the completion of bankruptcy the company's owners (stockholders) all end up with nothing — all their rights and interests are terminated — and the company's creditors end up with ownership of the newly reorganized company, in the hopes that it will eventually succeed financially as compensation for their losses. It is often the case that the value of a typical business as a going concern is higher than the value of the sum of its parts if the business's assets were to be sold off individually. It follows that it may be more economically efficient to allow a troubled company to continue running, cancel some of its debts, and give ownership of the newly reorganized company to the creditors whose debts were cancelled; in this way, jobs are saved, assets are retained, the engine of profitability which is the business is maintained rather than being dismantled, and, as a proponent of a Chapter 11 plan is required to demonstrate as a precursor to plan confirmation, the business's creditors end up with more money than they would in a Chapter 7 liquidation. |
|
|
Copyright © 2005 lnda.com Powered by Engineer Partner |