StudentShare solutions
Triangle menu

Considering Cases Of Bankruptcy And Reorganisation Of A Partnership - Essay Example

Nobody downloaded yet

Extract of sample
Considering Cases Of Bankruptcy And Reorganisation Of A Partnership

Bankruptcy is usually a legally declaration of individuals or organizations inability to pay their creditors. This request is done by the creditors in order for them to recoup a fraction of what they are owed by an individual or an organization. However, bankruptcy can also be initiated by the individuals themselves or organization in case they feel that they are not capable of paying their debts.
In simple words, an individual or an organization is insolvent or bankrupt if it cannot pay his debts or discharge his liabilities on the due date. The creditors or the debtors themselves may present a petition to the court that a receiving order should be made.
For this case, Beren took the correct step of filing an involuntary petition with the court of law to declare their partnership bankrupt as indicated in chapter 7. Indeed the partnership had exceeded their estimate of purchasing and renovating the office building to a point of accumulating debts amounting to $380,000 against the $200,000 they had set aside for this and effort by Beren to convince other partners to seek additional funds bore no fruits.
On the other had Elliot and Mannino objected to Beren's idea of involuntary bankruptcy under Chapter 7. ...
Under Chapter 7, there is an alternative relief for the debtors to avoid the issue of their partnership being liquidated and continue doing it business. For this case the involuntary petition filed by Beren may not be granted by the court which was done against the wish of Elliot and Mannino. (U.S Courts, 2006)
Elliot and Mannino should file a petition under chapter 11 of the bankruptcy code. The debtors may argue that they would pay the debts if the payment period is extended. They may also argue that they may have a comprehensive reorganization. 1
The main objective of bankruptcy is to give an honest individual a clean bill of life or a fresh start after discharging certain debts. Usually the there is no responsibility of liabilities already discharged on the side of the debtor.




Question Two

Explaining Whether the Bankruptcy Court Confirms the Debtor's Plan of Reorganization
A voluntary petition was filed by Richard under chapter 11. He filed a reorganization plan that divided his creditors into three classes. The three classes were: administrative creditors which were to be paid in full; the second class were unsecured creditors which were to receive 50% on their claims and the third class was the IRS which was to receive $20,000 on confirmation and the balance in future payments. There was no creditor who voted to accept this arrangement and the unsecured creditors were impaired since their legal, equitable, and contractual rights were being altered.
(http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.html)
To keep the firm running, debtors propose a plan of reorganization in order for them to pay their creditors in a considerable period of time. A ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Considering Cases Of Bankruptcy And Reorganisation Of A Partnership Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/298793-considering-cases-of-bankruptcy-and-reorganisation-of-a-partnership
(Considering Cases Of Bankruptcy And Reorganisation Of A Partnership Essay)
https://studentshare.net/miscellaneous/298793-considering-cases-of-bankruptcy-and-reorganisation-of-a-partnership.
“Considering Cases Of Bankruptcy And Reorganisation Of A Partnership Essay”, n.d. https://studentshare.net/miscellaneous/298793-considering-cases-of-bankruptcy-and-reorganisation-of-a-partnership.
  • Cited: 0 times

Summary

Beren, Elliot and Mannino formed a general partnership with an aim of purchasing and renovating an office building in Harrisburg, Pennsylvania. They had borrowed more than $200,000 from a bank for purchasing and renovating the building. These expenses exceeded they estimates in that disagreement arose among the partners on whether they should seek additional funds.
Considering Cases Of Bankruptcy And Reorganisation Of A Partnership
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Considering Cases Of Bankruptcy And Reorganisation Of A Partnership"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Discuss critically the central aspect of the US Chapter 11 model of corporate bankruptcy and reorganisation
The research centers on the responsibility of the debtors in a Chapter 11 bankruptcy and reorgnisation process. The research deals with the required acts of the creditors in a Chapter 11 Bankruptcy and reorgnisation proceeding. The main purpose of the essay is to show convincing evidence that the Chapter 11 Bankruptcy and reorgnisation law can successfully breath new revenue-enhancing life to once unprofitable companies.
17 pages (4250 words) Essay
Cases
It was alleged that Airbus was resorting to unfair policies like heavy price cuts to beat off the competition. Another allegation was that Airbus was receiving huge financial support from four European governments with no repayment conditions. At the end of the argument, an agreement was reached between European governments and US government that Airbus would not be given more than 33% of the total development cost as financial aid for the development of any new model and that Airbus was to repay the money with interest within seventeen years.
5 pages (1250 words) Essay
Detroit Bankruptcy
The proceeding provides protection to financially distressed municipalities from creditors through the creation of a financial plan aimed at settling the debt. The purpose of the filing was to extend the loan terms while maintaining a lid on the interest rates.
5 pages (1250 words) Essay
Bankruptcy and Reorganization
The people whose debts come mainly from business are eligible for Chapter 7. If a person's income is less than or equal to the median income of his state then he is eligible for Chapter 7. If it is above then he has to pass the means test. Calculate the current monthly income and see if the total monthly disposable income is less than the $100 then the person passes the means test and he is eligible for Chapter 7.
2 pages (500 words) Essay
Bankruptcy
From an individual's point of view, if he or she declares bankruptcy the court of law discharges the debt or repays the debt after selling the property or makes an appropriate plan to repay the debt. From the company's perspective, if the company files bankruptcy protection in the court of law then the court assign an agent to the company, who arranges payments to repay the debt through different modes or ceases the business operations and auctions off their asstes and property.
4 pages (1000 words) Essay
Partnership
It is quite important to understand the concept of Agency as Partnerships are understood to be essentially relationships of agency. Agency is defined as an individual who is known as Agent, intentionally agreeing and accepting to act for or on behalf of someone else.
4 pages (1000 words) Essay
Partnership
The various partners that constitute the partnership firm act ‘in common’ according to Section 24(5) of the Act which means that each partner is acting on
3 pages (750 words) Essay
Cases
In the majority of cases, the safety breaches by the employee are considered to be the main reason for the employee’s dismissal. On the basis of different cases, the authors of the article show the way an
3 pages (750 words) Essay
Bankruptcy
The two categories engross the five bankruptcy types: chapter7-Liquidation, chapter 13-individual debt adjustment, chapter 11-reorganisation, chapter 12-Family farmer, and chapter 9- municipality (Distenfield, 2005, p. 47). All five chapters are distinct as each
2 pages (500 words) Essay
Bankruptcy
It allows the entrepreneur to send a clear message to his clients that he will not be able to pay his debts. It also allows the lower staff to understand that they will not gain any
1 pages (250 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Considering Cases Of Bankruptcy And Reorganisation Of A Partnership for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us