Get Creditors and Their Bonds Plus Hidden Commercial Court Process

The purpose of the Chapter 11 Proceedings is akin to liquidation in England and Wales where the business and assets of a company are realised for the benefit of creditors whose claims take the priority afforded to them by statue.

Garnishment: Legal process used by a creditor to collect a debt by seizing property of the debtor (e.g., wages) being held by a third party (e.g., the debtor's employer). • Both state and federal laws restrict the amount of money that can be garnished from a debtor's paycheck.

​Compounding a debt refers to the making of an agreement between the debtor and creditor, whereby an alternative obligation in incurred in lieu or in satisfaction of the debt. However, not all agreements to accept an alternative payment arrangement constitute the compounding of a debt.

Unlike chapter 7, chapter 11 is not a liquidation of the debtor's assets. Rather, it is a reorganization of existing assets, principally as debt.

Does a Chapter 11 bankruptcy erase a business's debts? Not exactly. Creditors often have to accept less under a court-approved reorganization plan. But the idea is for the business to keep earning money so it can pay back as much as possible.

This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.

The chapter of the Bankruptcy Code under which a debtor seeks to reorganize its affairs by confirming a plan of reorganization. A debtor can also use Chapter 11 to liquidate its estate.

A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged.