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    All About Bankruptcy: When to File Chapters 7, 11, and 13

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    The law firm is very concerned that the call center would not be able to pay any judgment levied against it by the courts in a civil tort case. Due to recent robberies and legal troubles with the call center, the firm is worried that the call center although incorporated may have to file bankruptcy. Your firm is currently owed just over $40,000,000 by the call center.

    You have been tasked with putting together a report on the following issues:

    Can the call center file Chapter 7 bankruptcy? Explain.
    Can the call center file Chapter 11 bankruptcy? Explain.
    Can the call center file Chapter 13 bankruptcy? Explain.
    What are the benefits and the negatives of the call center filing bankruptcy?
    Are there any federal guidelines that might affect the call centers decision to file?

    Make sure to discuss any applicable statutes or case law in your state or country. Due to the seriousness of this matter, take the project a step further.

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    https://brainmass.com/business/options/all-about-bankruptcy-when-to-file-chapters-7-11-and-13-269957

    Solution Preview

    The main concept surrounding bankruptcy legislation is that it gives an individual or organization a chance at a fresh start from the overwhelming amount of debts it may be facing. Usually, the entity/debtor is not able to repay that amount of debt, or it can repay but under different terms than those set by its creditors. The individual or organization gets that fresh start, with all debts written off at the time the bankruptcy is discharged, which is normally within 3 - 5 months after the bankruptcy is filed. There are several different types of bankruptcy that entities can file in order to fit their needs or meet certain obligations. Filing the right type of bankruptcy can assist the entity with setting up specific goals (as far as which debts will be discharged, whether an organization will reorganize, etc...), achieving those goals, and developing future financial goals. For the purpose of the Call Center, we will discuss bankruptcies in Chapters 7, 11, and 13.

    1) Chapter 7 bankruptcy is also known as a straight bankruptcy. It allows a business to sell all of its assets to pay off outstanding debts. During Chapter 7 bankruptcy proceeding, the debtor turns over all non-exempt property to the bankruptcy trustee (a federal employee to be distinguished from a private case trustee or panel trustee) who is responsible for converting it to cash and distribute it to the creditors. From there on, usually within four months, the debtor receives a discharge of all dischargeable debts usually within four months. Normally, due to the overload of debts the debtor has, the ...

    Solution Summary

    This paper is aimed at addressing the following questions regarding a call center that is considering filing bankruptcy:

    Can the call center file Chapter 7 bankruptcy? Explain.
    Can the call center file Chapter 11 bankruptcy? Explain.
    Can the call center file Chapter 13 bankruptcy? Explain.
    What are the benefits and the negatives of the call center filing bankruptcy?
    Are there any federal guidelines that might affect the call centers decision to file?

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