Chapter 7 bankruptcy liquidation

Law Office of 
Charles E. Andersen

Chapter 7 is also know as straight bankruptcy if you don't want to repay any debt, chapter 7 is an option to consider
Chapter 7 is also called a fresh start bankrutpcy
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The US Trustee is a participant in a chapter 7 Hon. John C. Ninfo chief US Bankruptcy Court Judge US Bankruptcy Court
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 POST CONFIRMATION MATTERS


Effects of Confirmation: The provisions of a confirmed Chapter 11 plan are binding upon all creditors and equity security holders, the debtor, any general partner in the debtor, and any entity that issues securities or acquires property under the plan regardless of whether they have accepted the plan or are impaired under the plan.
a. On property: Unless the plan or the confirmation order provides otherwise, confirmation causes all properly of the estate to vest in the debtor, and all property that is dealt with by the plan to be free and clear of all claims and interests
b. Discharge of debts: Generally, unless the plan or the

 confirmation order provides otherwise, confirmation discharges the debtor from all pre-confirmation debts, as well as from debts arising from (i) the rejection of executory contracts or unexpired leases not assumed by the trustee or debtor in possession; (ii) the recovery of property by the trustee or the debtor under section 522, 550, or 553; and (iii) seventh priority lax claims that occasionally arise post-petition. [B.C. 1141(d)(l)(A), 502(g),(h),(i)] These debts are discharged regardless of whether (i) a proof of claim was filed; (ii) the claim was allowed; or (iii) the holder accepted the plan.
(1) Note: A Chapter 11 discharge is not restricted to individual debtors (as in Chapter 7); thus, corporations and partnerships may be discharged as well. Also, confirmation terminates all rights and interests of general partners and equity security holders who are dealt with by the plan
(2) Exceptions to discharge: Confirmation does not discharge the following:


(a) individual's non-dischargeable debts: If the Debtor is an individual, a Chapter 11 discharge does not include any debts that are non-dischargeable under Bankruptcy Code section 523 (e.g., certain taxes, alimony, and child support).


(b) Liquidating plan: The debtor will not receive a discharge if (i) the confirmed plan provides for the liquidation of all or substantially all of the estate property, (ii) the debtor does not continue in business
after the plan is consummated; and (iii) the debtor would not be granted a discharge in a Chapter 7 case under section 727(a). Thus, for example, a corporation or a partnership will not receive a discharge where a Chapter 11 liquidating plan is confirmed and the debtor's business is discontinued.
(c) Officers and directors: Since confirmation of a Chapter 11 plan discharges only the debtor, it should be understood that officers and directors of a debtor corporation arc not discharged from any liabilities incurred personally while associated with the debtor (e.g., claims for tortious conduct brought by former shareholders).
(d) Failure to give notice: Where the debtor knows of a creditor's claim but fails to schedule it, and the creditor docs not receive notice of the bankruptcy proceedings, the principle of due process should prevail over the Code's discharge provisions, and so the debt should not be discharged.
c. Termination of automatic stay: Generally, confirmation of a Chapter 11 plan terminates the automatic -stay, since property vests in the debtor is no longer property of the estate and confirmation of a reorganization plan usually discharges the debtor.
2. Implementation of Plan:  Notwithstanding any non-bankruptcy law concerning financial condition, the Bankruptcy Code requires that (he debtor and any successor implement the plan and comply with all court orders. Furthermore, the court is authorized to order the debtor and any other necessary party to execute or deliver any instrument required for the transfer of property under the plan and to perform whatever else is needed to consummate the plan.
3. Distribution: Where the plan provides that an entity's participation in distribution is contingent upon the entity's surrender or presentment of a security or upon the doing of some other act, the entity must perform accordingly within five years after tin-date of the entry of the confirmation order, or it will forfeit (he right to share in distribution under the plan
4. Revocation of Confirmation Order: Within 180 days after the entry of the order confirming the Chapter 11 plan, a party in interest may request that the order be revoked, but only on the ground that it was procured by fraud. If, after notice and a hearing, the confirmation order is revoked, the court must provide protection for any rights that have been acquired by an entity's good faith reliance on the confirmation order, and it also must revoke any discharge received by the debtor.
5. Exemption from Securities Laws:  Generally, securities offered or sold by the debtor or its successor under a Chapter 11 plan in exchange for claims against or interests in the debtor or for administrative expense claims are exempt from the registration requirements of section 5 of the 1933 Securities Act and from registration requirements in any stale or local securities law. Furthermore, such an issuance is deemed to be a public offering, thereby escaping the restrictions imposed by rule 144 of the Securities and Exchange Commission concerning the resale of securities that are part of a private placement.
a. Underwriter: Usually, a creditor or an equity security holder receiving securities under a Chapter 11 plan may resell them unless he is an "underwriter." a term which the Code defines in great detail. An underwriter includes, for example, an entity that purchases a claim against or an interest in the debtor, or an administrative expense claim, with the intention of distributing securities that it will acquire under a Chapter 11 plan in exchange for the claim or interest. Similarly, it includes an entity that offers to sell securities on behalf of those receiving securities under a plan, or that offers to buy such securities from them for the purpose of resale pursuant to an agreement related to the plan. While the bankruptcy definition of an underwriter also covers an issuer, as used in section 2( 11) of the Securities Act of 1933, this obviously does not mean the debtor or its successor. However, it appears that an issuer does include a controlling person, i.e., a creditor holding ten percent or more of the debtor's securities. Any party considered to be an underwriter must comply with the registration requirements and any resale restrictions of the securities laws.

 

Click here for Chapter 11 Post Confirmation.

obtaining a chpater 7 discharge the bar date has passed arriving at the office
I hope he's in

 

 

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Chapter 7 & 13

If you qualify

 

STOP:

  • Creditor Harassment
  • Stop utility shutoffs
  • eliminate payments on unsecured debts.
  • Improve bad credit
  • Surrender car, and other secured collateral without incurring a "deficiency"

**For 13 cases with wage order and balance paid through a trustee as part of a partial re-payment plan and not paid directly to the attorney. Court filing fee is extra.

  • Emergency Petitions filed
  • Ask to see a statement of clients rights and responsibilities

 

Free Consultation

Reasonable rates

 

 

 

 

 

 

 

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