11 U.S.C.
11 U.S.C. § 548 is a section of the U.S. Bankruptcy Code that deals with fraudulent transfers made by a debtor. It allows a bankruptcy trustee to undo or reverse transactions where the debtor transferred property or assets with the intent to defraud creditors, or received less than fair value in return. This provision aims to protect creditors by ensuring that debtors cannot hide or unfairly dispose of assets just before declaring bankruptcy, thus preserving the assets for equitable distribution among all creditors.
Additional Insights
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11 U.S.C. refers to Title 11 of the United States Code, which governs bankruptcy law in the U.S. It outlines the procedures, rules, and protections available to individuals and businesses that are unable to meet their financial obligations. The code provides various chapters under which a debtor can file for bankruptcy, such as Chapter 7 (liquidation) and Chapter 11 (reorganization). It aims to help debtors either eliminate or restructure their debts while offering creditors a fair system for recovering what they can. Essentially, it balances the interests of both debtors and creditors in financial distress.
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11 U.S.C. § 363 is a section of the U.S. Bankruptcy Code that outlines how a debtor can sell their assets while under bankruptcy protection. It allows a bankrupt company to sell property, including valuable assets or entire businesses, outside the normal bankruptcy liquidation process. This can happen without needing to go through a formal creditors' meeting, provided the sale is in the best interest of the estate. The goal is to maximize value for creditors while ensuring the debtor can continue operations or streamline their finances during reorganization.
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11 U.S.C. § 523 is a section of the U.S. Bankruptcy Code that outlines certain types of debts that cannot be discharged in bankruptcy. This means that even if an individual declares bankruptcy, they are still responsible for these debts. Common exceptions include student loans, child support, alimony, certain taxes, and debts incurred through fraud or willful injury. The purpose is to ensure that individuals cannot easily escape these specific financial obligations, recognizing their importance in maintaining social and financial responsibilities.
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11 U.S.C. § 362 is a provision in U.S. bankruptcy law known as the "automatic stay." When an individual or business files for bankruptcy, this rule temporarily halts creditors from taking legal action to collect debts. This includes stopping lawsuits, phone calls, and demands for payment. The automatic stay gives the debtor a chance to reorganize their finances and develop a repayment plan without the pressure of creditors. However, there are exceptions; some actions, like certain criminal proceedings or family support obligations, can still proceed despite the bankruptcy filing.