Bankruptcy BASICS

Bankruptcy Judges Division
Administrative Office of the United States Courts
Leonidas Ralph Mecham, Director

APRIL 2006 Revised Third Edition

For cases filed on or after October 17, 2005

While the information presented is accurate as of the date of publication, it should not be cited or relied upon as legal authority. It should not be used as a substitute for reference to the United States Bankruptcy Code (title 11, United States Code) and the Federal Rules of Bankruptcy Procedure, both of which may be reviewed at local law libraries, or to local rules of practice adopted by each bankruptcy court. Finally, this pamphlet should not substitute for the advice of competent legal counsel.

Table of CONTENTS

Introduction & Process

The Discharge in Bankruptcy

a. What is a discharge in bankruptcy?

b. When does the discharge occur?

c. How does the debtor get a discharge?

d. Are all of the debtor's debts discharged or only some?

e. Does the debtor have a right to a discharge or can creditors object to the discharge?

f. Can the debtor receive a second discharge in a later case?

g. Can the discharge be revoked?

h. May the debtor pay a discharged debt after the bankruptcy case has been concluded?

i. What can the debtor do if a creditor attempts to collect a discharged debt after the case is concluded?

j. May an employer terminate a debtor's employment solely because the person was a debtor or failed to repay a discharged debt?

Chapter 7. Liquidation Under the Bankruptcy Code

a. Alternatives to Chapter 7

b. Background

c. Chapter 7Eligibility

d. How Chapter 7 Works

e. Role of the Case Trustee

f. The Chapter 7 Discharge

Chapter 13. Individual Debt Adjustment

a. Background

b. Advantages of Chapter 13

c. Chapter 13 Eligibility

d. How Chapter 13 Works

e. The Chapter 13 Plan and Confirmation Hearing

f. Making the Plan Work

g. The Chapter 13 Discharge

h. The Chapter 13 Hardship Discharge

Chapter 11. Reorganization Under the Bankruptcy Code

a. Background

b. How Chapter 11 Works

c. The Chapter 11 Debtor in Possession

d. The U.S. Trustee or Bankruptcy Administrator

e. Creditors' Committees

f. The Small Business Case and the Small Business Debtor

g. The Single Asset Real Estate Debtor

h. Appointment or Election of a Case Trustee

i. The Role of an Examiner

j. The Automatic Stay

k. Who Can File a Plan

l. Avoidable Transfers

m. Cash Collateral, Adequate Protection, and Operating Capital

n. Motions

o. Adversary Proceedings

p. Claims

q. Equity Security Holders

r. Conversion or Dismissal

s. The Disclosure Statement

t. Acceptance of the Plan of Reorganization

u. The Discharge

v. Postconfirmation Modification of the Plan

w. Postconfirmation Administration

x. Revocation of the Confirmation Order

y. The Final Decree

Chapter 12. Family Farmer or Family Fisherman Bankruptcy

a. Background

b. How Chapter 12 Works

c. The Chapter 12 Plan and Confirmation Hearing

d. Making the Plan Work

e. The Chapter 12 Discharge

f. Chapter 12 Hardship Discharge

Chapter 9. Municipality Bankruptcy

a. Purpose of Municipality Bankruptcy

b. Eligibility

c. Commencement of the Case

d. Assignment of Case to a Bankruptcy Judge

e. Notice of Case/Objections/Order for Relief

f. Automatic Stay

g. Proofs of Claim

h. Court's Limited Power

i. Role of the U.S. Trustee/Bankruptcy Administrator

j. Role of Creditors

k. Intervention/Right of Others to be Heard

l. Powers of the Debtor

m. Dismissal

n. Treatment of Bondholders and Other Lenders

o. Plan for Adjustment of Debts

p. Confirmation Standards

q. Discharge

Chapter 15. Ancillary and Other Cross-Border Cases

SCRA. Servicemembers' Civil Relief Act

a. Background

b. General Provisions

c. Applicability to Bankruptcy Proceedings

SIPA. Securities Investor Protection Act

a. Overview

b. History

c. SIPA

d. Bankruptcy Liquidation versus the SIPA Liquidation in Bankruptcy Court

e. Role of the District Court

f. Removal to Bankruptcy Court

g. Liquidation Proceedings

h. Powers of the Trustee

i. Claims

j. Distribution

k. Advances

l. Direct Payment Under SIPA Outside the Bankruptcy Court

m. Role of Securities and Exchange Commission

n. Compensation in a SIPA Action

Bankruptcy Terminology