UNIT 1 LAW 301 HOMEWORK

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Jan 9, 2024

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OPERATIVE & UNIVERSAL CHAPTERS OF BANKRUPTCY CODE Operative & Universal Chapters of the Bankruptcy Code Beverly Baxter Post University LAW301-31-Bankruptcy Law and Practice Professor: Vallillo Assignment Due Date: September 4, 2022
OPERATIVE & UNIVERSAL CHAPTERS OF BANKRUPTCY CODE The six operative chapters of the United States Bankruptcy Code (11 U.S.C.S., Title 11) are. Chapter 7, which deals with liquidation; Chapter 9, provides Adjustment of Debts of a Municipality; Chapter 11, Reorganization; Chapter 12, Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income; Chapter 13, Adjustment of Debts of an Individual with Regular Income, and Chapter 15, Ancillary and other Cross-Border Cases. The purposes for the operative chapters 9, 11, 12, and 13, “deals with restructuring the debt, although a debtor may liquidate under Chapter 11.” Chapter 7 only deals exclusively with liquidation out of the other six chapters. There are three Universal Chapters of the Bankruptcy Code, and they are. Chapter 1, General Provisions; Chapter 3, Case Administration; and Chapter 5, Creditors, Debtors, and the Estate. Their primary purposes are. Chapter 1 bankruptcy codes have their own definitions and are found in this chapter. Chapter 3 is an important chapter of title 11 and is divided into four subchapters and deals with the progress of cases through bankruptcy court. Chapter 5 has three subchapters. The practical differences between the operative and universal chapters are. The universal chapters, “contain important definitional and administrative provisions that generally apply to all operative chapters of the bankruptcy code.” The operative chapters, “generally relate to cases being administered under that particular chapter.” One example of a universal chapter is chapter 1 which states, “The Bankruptcy Code defines debtor as a “person or municipality concerning which a case under this title has been commenced.” 11 U.S.C.A. § 101(13). Article 9 of the Uniform Commercial Code defines debtor as “a person having an interest, other than a security interest or other lien, in collateral.” UCC § 9—102(b)(28). If the case is a bankruptcy case, the Bankruptcy Code definition of debtor applies rather than the UCC definition.” One example of an operative chapter is chapter 7 which states, “Liquidation under Chapter 7 is available to all persons who may be debtors under this chapter, whether they are individuals, partnerships, or corporations. Railroads, insurance companies, and certain banking institutions may not be debtors under Chapter 7. A debtor need not be insolvent to take advantage of Chapter 7 liquidation. 11 U.S.C.A. § 109(b).”
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