In this issue of Community Banker we discuss bankruptcy law, a topic lenders and boards of directors need to be up to speed on.
Chapter 7 – This is the basic theory of bankruptcy. A chapter 7 bankruptcy case does not involve the filing of a plan of repayment. Instead the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of those assets to pay creditors; priority is given to those creditors with valid liens. The debtor may keep certain “exempt” property to help him toward his “fresh start”, and trustee will liquidate the debtor’s remaining assets.
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The Community Banker is prepared by attorneys at Olson & Burns P.C. to provide information pertaining to legal developments affecting the field of banking. In order to accomplish this objective, we welcome any comments our readers have regarding the content and format of this publication. Please address your comments to firstname.lastname@example.org.