Bankruptcy Laws

Because restaurants and food businesses frequently face bankruptcy, the topic is of particular importance as a food issue. When someone can no longer pay his or her creditors, there is a reprieve that allows the person to obtain a new start. If he or she liquidates assets and creates a payment plan, this is known as bankruptcy. In the United States, bankruptcy laws help provide protection not only for individuals but also for businesses by allowing them a way to pay their creditors back through restructuring or liquidation. There are six chapters of the Bankruptcy Code: Chapters 7, 9, 11, 12, 13, and 15. This entry describes each of these chapters of the Bankruptcy Code, including how bankruptcy laws apply to family farmers and family ...