clearsmokeecigs.com

Bankruptcy follows two common forms: liquidation and reorganization.

PAGE

Bankruptcy(4)

clearsmokeecigs.com Filing for bankruptcy has the primary purpose to: (i) give an "honesth debtor a "fresh start" in life by relieving of most debts, and (ii) to repay creditors in an orderly manner to the extent that the debtor has the means to do so. Bankruptcy follows two common forms: liquidation and reorganization. In a liquidation bankruptcy, the non-exempt assets of the debtor are sold off to satisfy creditor claims. It is usually referred to as "administering" the debtor's estate. There is always the possibility that the creditors will suffer a deficit from this filing of bankruptcy. A reorganization bankruptcy on the other hand is a form of bankruptcy in which a debtor reorganizes or restructures assets and debts. Individuals may opt for reorganization bankruptcy in order to retain assets and pay creditor claims out of the individual's income.