Bankruptcy Code
- A portion of the U.S. Code that regulates the procedures for insolvency and debt adjustment. It is applicable to individuals and private corporations, excluding certain financial institutions. The Bankruptcy Code was systematically codified with the development of the Bankruptcy Reform Act of 1978. The Code sets the guidelines for different kinds of bankruptcy, including: liquidation (Chapter 7), debt adjustment for municipalities (Chapter 9), corporate reorganization (Chapter 11), adjustment of debts for family farmers with regular income (Chapter 12), and wage earners' bankruptcy (Chapter 13).
- After his business failed, he filed for Chapter 7 under the Bankruptcy Code to liquidate his assets and pay off his creditors.
- The city has filed for Chapter 9 under the Bankruptcy Code to adjust their debts.
- Under the Bankruptcy Code, the company is filing for Chapter 11 to get an opportunity for corporate reorganization and continue their business.
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