bankruptcy_type

Bankruptcy Type

The bankruptcy chapter of the borrower.

├── court_administration
├── insolvency
│   ├── chapter_7
│   ├── chapter_9
│   ├── chapter_11
│   ├── chapter_12
│   └── chapter_13
└── other

chapter_7

Chapter 7 of the Bankruptcy Code provides for “liquidation” - the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.

chapter_9

Chapter 9 of the Bankruptcy Code provides for reorganization of municipalities, which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts.

chapter_11

Chapter 11 of the Bankruptcy Code provides for reorganization, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals also can seek relief in Chapter 11.

chapter_12

Chapter 12 of the Bankruptcy Code provides for adjustment of debts of a “family farmer,” or a “family fisherman” as those terms are defined in the U.S. Bankruptcy Code.

chapter_13

Chapter 13 of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

court_administration

Any proceeding involving the intervention of a judicial body or similar aimed at reaching a refinancing agreement among the creditors, with the exception of any bankruptcy or insolvency proceedings.

insolvency

The partial or total divestment of a counterparty and the appointment of a liquidator.

other

Use this when the customer is understood to be bankrupt but where the exact bankruptcy chapter is unknown or does not meet another definition within the taxonomy.