To "go in to chapter" typically refers to a legal action taken by an individual or a company to declare bankruptcy or insolvency. It is a phrase commonly used in business, finance, and legal contexts.
When an individual or a business entity is unable to repay their debts and faces financial distress, they may choose to go in to chapter proceedings. Chapter proceedings refer to the bankruptcy process as outlined by a specific chapter of the United States Bankruptcy Code.
The phrase "go in to chapter" specifically relates to filing for bankruptcy under a particular chapter of the Bankruptcy Code. For instance, individuals may file for bankruptcy under Chapter 7 or Chapter 13, while businesses often choose to file under Chapter 11.
Going in to chapter involves submitting a formal legal petition to the relevant bankruptcy court. This petition outlines the debtor's financial situation, assets, liabilities, and other pertinent information. Upon acceptance of the petition, the court takes control over the debtor's assets, income, and debts, protecting them from any further collection attempts by creditors.
During the bankruptcy process, the court will assess the debtor's financial situation, develop a repayment plan (if applicable), and ultimately either discharge the debtor's debts or establish a structured plan for repayment based on the specific chapter under which the bankruptcy was filed.
It is essential to note that the phrase "go in to chapter" primarily applies to the bankruptcy process in the United States, and its usage may vary in other jurisdictions.
