under chapter 7 and chapter 11 quizlet

1. What is the main difference between chapters 7 and 11 quizlet?
2. What is a Chapter 11 discharge?
3. Can a Chapter 11 be converted to a Chapter 7?
4. What is covered under Chapter 7?
5. Which of the following is the goal of Chapter 11?
6. Which claims have the lowest priority in payment?
7. Who gets paid first in Chapter 11?
8. What happens if Chapter 11 is dismissed?
9. Can a Chapter 11 be voluntarily dismissed?
10. How long do Chapter 11 bankruptcies take?
11. What is a conversion order in court?

What is the main difference between chapters 7 and 11 quizlet?

What is the main difference between Chapters 7 and 11? The main difference between the two is that under Chapter 11, the business continues to operate, while in a 7, the business ceases operation. Which option does not attempt to repay and discharge debt?

What is a Chapter 11 discharge?

In a Chapter 11 case filed by an individual (i.e., a natural person), a discharge is granted by the court separately, after the completion of payments under the plan. A discharge is a court order relieving the debtor from liability for certain debts.

Can a Chapter 11 be converted to a Chapter 7?

If a debtor files under Chapter 11, in most circumstances it can later convert its case to Chapter 7 and liquidate its assets.

What is covered under Chapter 7?

A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.

Which of the following is the goal of Chapter 11?

Chapter 11 bankruptcy is the formal process that allows debtors and creditors to resolve the problem of the debtor's financial shortcomings through a reorganization plan. Accordingly, the central goal of chapter 11 is to create a viable economic entity by reorganizing the debtor's debt structure.

Which claims have the lowest priority in payment?

General unsecured claims have the lowest priority of all claims. After the bankruptcy estate pays administrative expenses, priority unsecured claims and secured claims, general unsecured creditors will receive a pro rata distribution of the remaining funds.

Who gets paid first in Chapter 11?

Secured creditors, like banks, typically get paid first in a Chapter 11 bankruptcy, followed by unsecured creditors, like bondholders and suppliers of goods and services. Stockholders are typically last in line to get paid. Not all creditors get repaid in full under a Chapter 11 bankruptcy.

What happens if Chapter 11 is dismissed?

In any case where a bankruptcy petition is dismissed, the individual loses the protection of the automatic stay. This means his or her creditors can resume their collection attempts until he or she gains bankruptcy protection again by successfully filing a case.

Can a Chapter 11 be voluntarily dismissed?

In a Chapter 11 you don't automatically have the right to voluntarily dismiss your case like you do in a Chapter 13. You can file a motion to dismiss but the Court will sua sponte (on it's own) do an analysis and decide if conversion to Chapter 7...

How long do Chapter 11 bankruptcies take?

There is no absolute limit on the duration of a Chapter 11 case. Some Chapter 11 cases wrap up within a few months, but it's more usual for it to take six months to two years for a Chapter 11 case to come to a close.

What is a conversion order in court?

Conversion in California is a civil cause of action that applies when a person unlawfully and without permission, took or interfered with someone else's possession of their property. The victim can bring a claim for recovery of the property, or compensation for the value of the lost property.