Commercial Bankruptcy

Bankruptcy, Commercial


a special process established in the law of the majority of capitalist states, initiated to provide just satisfaction of all claims by creditors in case a debtor is adjudged insolvent by a court.

In case of bankruptcy, a special body, known as a bankruptcy administration, is created to administer and dispose of the property of the insolvent debtor for the benefit of his creditors. The nature of the property (the bankrupt’s estate) that may be transferred to the bankruptcy administration and sold is variously defined in different countries. For example, in the Federal Republic of Germany the bankrupt’s estate consists only of property owned by the insolvent debtor at the moment of the initiation of the bankruptcy proceeding. In Great Britain, the USA, and France, property in the possession of the insolvent debtor at the time of the bankruptcy proceeding is also included. In the bankruptcy proceeding the amount and nature of the creditors’ claims are established, as is the order of priority for their satisfaction. High-priority claims are usually taxes, fees, wages, and the expenses connected with the bankruptcy proceeding. The remaining property is distributed in proportion to the amounts of claims accepted by the court. Proceeds from the sale of the property are distributed gradually as funds are accumulated. When the bankruptcy proceeding is complete, a judgment to that effect is passed by the court.

References in periodicals archive ?
He has been involved in large Chapter 15 cross-border insolvency cases and has also represented creditors, creditors' committees and debtors in large commercial bankruptcy cases in New York, New Jersey, Delaware and elsewhere around the country.
Following on the heels of an announcement that the UAE will implement a commercial bankruptcy law, H.
Following on the announcement that the UAE will implement a commercial bankruptcy law, the government has also indicated an individual bankruptcy law is in the making and it could be implemented as early as next year.
The council approved a draft study on the commercial bankruptcy system prepared by the economy and energy committee.
Swanson's practice focuses primarily on commercial bankruptcy, creditors' rights, and commercial litigation.
They also argue that unlike commercial bankruptcy they are important differences in a municipal bankruptcy case that mean it is less likely that a common understanding among creditors and debtors will emerge.
and developer Joseph McCloskey-Diaz, who was involved in a highly-publicized mortgage fraud scheme in 2009, were among the most recent commercial bankruptcy filings, with upward of $20 million in combined debt, reports News Is My Business (April 19, 2013).
The first binder contains chapters on the bankruptcy court system, provisions common to all cases, liquidation cases, chapter 13 cases, family farmer and fisherman reorganizations, commercial bankruptcy (Chapter 11 business reorganization), and practical litigation.
Musumeci's colorful history and his extraordinary deals will make the current bankruptcy especially interesting, said Bo Muhlheim, whose firm specializes in commercial bankruptcy and litigation.
While unemployment and commercial bankruptcy rates are up so is the U.
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