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Bankruptcy Code (view source)

Revision as of 23:50, June 17, 2023

1,153 bytes added , 23:50, June 17, 2023

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Chapter 11 filings are more expensive than Chapter 7: "The courts are required to charge a $1,167 case filing fee and a $571 miscellaneous administrative fee." There are also additional requirements for filing documents in a Chapter 11 bankruptcy.

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In Chapter 11 filings, the debtor remains in control of the assets and can institute adversary proceedings to seek recovery of additional assets:

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{{cquote|Once a voluntary Chapter 11 bankruptcy petition is filed, the debtor usually assumes the role of “debtor in possession,” meaning that the debtor keeps control of its assets during the Chapter 11 proceedings. A debtor in possession has the position of a fiduciary. Most frequently, the debtor in possession operates the business, performing many of the tasks that would be performed by the trustee if another type of bankruptcy were filed. These tasks may include accounting for property, filing information reports, examining creditors’ claims and objecting to them as appropriate, filing tax reports, and filing a final accounting. The debtor [in] possession is permitted to employ professionals such as attorneys, accountants, and appraisers.<ref>https://www.justia.com/bankruptcy/chapter-11/</ref>}}

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A U.S. Trustee will monitor the debtor in possession’s compliance. In some cases, however, a trustee is appointed for cause, and the trustee administers the debtor’s Chapter 11 case.

==== Small business ====

As explained by the US Courts website:<ref>https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics</ref>

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Anthony, Irenaeus, Siteadmin, apieditor, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators

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