Bankruptcy Code

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Bankruptcy code

Laws governing bankruptcy proceedings for corporations, municipalities, and individuals. Enacted through the U.S. Federal Bankruptcy Reform Act of 1978.

Bankruptcy Code

A comprehensive law governing bankruptcy in a country or other jurisdiction. In the United States, the Bankruptcy Reform Act of 1978 forms the current bankruptcy code. It provides for three main types of bankruptcy. Chapter 7 provides for liquidation of a business and discharge of debts. Chapter 11 allows corporations to continue operations after reorganization. Chapter 13 restructures debt but does not forgive it.

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