reorganization in bankruptcy
71Chapter 12 — family farmer bankruptcies. This was created by Congress in 1986 (Chapter 12 became effective on November 26, 1986). Only a family owned farm business can qualify for Chapter 12 and it must have debt less than $1.5 million and have 50% of its… …
72ballot date — the date and time when all votes for accepting or rejecting the plan of reorganization must be received (Glossary of Common Bankruptcy Terms) concerning a bankruptcy reorganization, the date and time, set by the bankruptcy court, by which all… …
73Chapter 13 — bankruptcy proceedings for an individual with the intention of rescheduling the individual s debt (rather than liquidating the individual s assets and debt; an individual files under Chapter 7 to liquidate), Chapter 13 is referred to as… …
74period of exclusivity — a debtor in Chapter 11 has the exclusive right to file a plan of reorganization for the first 120 days of its bankruptcy. Thereafter, unless the period of exclusivity is extended by the court, other parties may file reorganization plans. (see… …
75chapter — the Bankruptcy Code is organized into Chapters. Except for Chapter 12, the Chapters of the present code are all odd numbered and are enumerated with Arabic numerals. (Before the Bankruptcy Reform Act of 1978, the Chapters were numbered with Roman …
76Chapters X, XI and XII — before Chapter 11 of the Bankruptcy Reform Act of 1978, these three chapters of bankruptcy existed for company bankruptcies that involved reorganization. Chapter X involved reorganization for larger companies that held public debt or equity.… …
77disclosure statement — a comprehensive disclosure document sent to creditors when they are asked to vote on a plan of reorganization in Chapter 11. (Glossary of Common Bankruptcy Terms) An explanatory document that accompanies the plan and the solicitation of votes in… …
78effective date — the date on which a plan of reorganization is implemented. It usually occurs after all the conditions to a plan of reorganization have been satisfied (Glossary of Common Bankruptcy Terms) The date an agreement comes into force. (Dictionary of… …
79confirmation order — The order issued by a Bankruptcy Judge, which order authorizes the implementation of the plan of reorganization thereby making the terms of the plan (under chapter 11, 12 or 13) binding upon the debtor and all creditors. The terms of the… …
80absolute priority rule — In a Chapter 11 Plan, the debtor in possession must completely satisfy the claims of a higher, dissenting class before the claims of classes lower in priority can participate in the reorganization. Thus, a corporate debtor s shareholders cannot… …
