ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This chapter of the Bankruptcy Code generally provides 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.

Detailed explanation-2: -Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.

Detailed explanation-3: -Chapter 7 is a “liquidation” bankruptcy that doesn’t require a repayment plan but does require you to sell some assets to pay creditors. Chapter 11 is a “reorganization” bankruptcy for businesses that allows them to maintain day-to-day operations while creating a plan to repay creditors.

Detailed explanation-4: -Insolvency is when a company or person can’t pay debts when they are due. There are several options available to an insolvent company or person: the most common corporate insolvency procedures for an insolvent company are liquidation, voluntary administration and receivership.

Detailed explanation-5: -Emergence Definition The emergence stage of a bankruptcy occurs when the court and creditors agree to a reorganization plan and the judge files the bankruptcy’s final decree. The main benefit of emergence over liquidation is the company can continue operating as a business.