BANKRUPTCY CODE Meaning and
Definition
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The bankruptcy code refers to a set of laws and regulations established by a government that govern the legal processes, procedures, and rights surrounding bankruptcy. It encompasses a detailed framework dictating how individuals, companies, or entities navigate insolvency and seek protection from creditors when they are unable to repay their debts.
Typically enacted as national legislation, the bankruptcy code aims to provide a fair and orderly process for all parties involved. It defines various types of bankruptcy, such as Chapter 7, Chapter 11, or Chapter 13, each presenting distinct rules and requirements. The code outlines eligibility criteria, procedures for filing bankruptcy petitions, and details regarding asset protection, debt recovery, and distribution amongst creditors.
The bankruptcy code establishes a court-supervised system to determine the discharge or restructuring of debts, ensuring equitable treatment of both debtors and creditors. It sets forth guidelines for the disclosure of financial information, reorganization plans, negotiation processes, and hearings.
Furthermore, the bankruptcy code offers provisions for protection against creditor harassment, collection actions, and repossession, providing debtors with temporary relief from looming financial difficulties. It may also establish exemptions, safeguarding specific assets from being liquidated during the bankruptcy proceedings. Conversely, it allows creditors to assert their claims safeguard their interests during bankruptcy proceedings and seek repayment as deemed lawful.
Overall, the bankruptcy code serves as a crucial legal framework designed to address financial distress, debt resolution, and the fair distribution of assets and obligations, ultimately providing a structured path towards economic recovery for individuals and businesses facing insolvency.
Common Misspellings for BANKRUPTCY CODE
- vankruptcy code
- nankruptcy code
- hankruptcy code
- gankruptcy code
- bznkruptcy code
- bsnkruptcy code
- bwnkruptcy code
- bqnkruptcy code
- babkruptcy code
- bamkruptcy code
- bajkruptcy code
- bahkruptcy code
- banjruptcy code
- banmruptcy code
- banlruptcy code
- banoruptcy code
- baniruptcy code
- bankeuptcy code
- bankduptcy code
- bankfuptcy code
Etymology of BANKRUPTCY CODE
The etymology of the word "bankruptcy code" can be broken down as follows:
1. Bankruptcy: The word "bankruptcy" originated in Late Middle English, derived from the Old French word "banqueroute". It can be further traced back to the Italian phrase "banca rotta", meaning "broken bank" or "failed bank". This term was used to describe the practice of bankrupt traders who broke their benches (banca in Italian) in order to halt their business operations.
2. Code: The word "code" has its roots in the Latin word "codex", which referred to a wooden tablet or a book. In the context of "bankruptcy code", it denotes a systematic and comprehensive set of laws or regulations that govern bankruptcy proceedings.
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