This chapter is specifically for “family farmers” and “family fishermen” with a “regular annual income.” It allows them to repay all or some of their debt through a repayment plan that is set up with their creditors. Most repayment plans lasts between three to five years, and the court will need a good cause to allow the plan to go longer than three years. A five year plan will assigned if the individual is required to pay 100 percent of domestic support. Chapter 12 is better for farmers and fishermen because it is tailored towards them specifically because their income is seasonal. Chapter 11 is too expensive for them, and chapter 13 is for wage earners.
Chapter 15 is a new chapter that was added by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It was made to help find better ways of dealing with insolvency cases with debtors, claimants, assets and individuals or parties of more than one country. The main purpose of this chapter is:
-To promote cooperation between United States Courts and foreign countries involved in cross-border insolvency cases
-Allows for a greater legal certainty for investment and trade
-Protects creditors, debtors and other entities by giving fair administration in cross-border insolvency cases
-Protects the debtors assets allowing for the best value of their assets
-Protects investment and employment by saving failing businesses
This is an ancillary case, which allows a case trustee to act on behalf of the United States court in a foreign country. The petition filed under this chapter must show documents of foreign proceedings and the foreign representative involved. After the hearing, the court will rule it a foreign hearing, then it will have to follow United States bankruptcy codes.
Chapter 15 allows foreign creditors to follow U.S. bankruptcy codes prohibiting discrimination against them. The most important goal of chapter 15 is to create cooperation between the United States and those involved with foreign countries and cross-border insolvency cases. United States courts and representatives are required to fully cooperate with foreign representatives and foreign courts.
Chapter 9 allows for municipalities (cities and towns) to reorganize their debt. The purpose of this is to provide protection for these municipalities as they make plans to pay off their debts. They can rearrange these debts by reducing principal or interest, extending debt maturities or by refinancing to get a new loan. This chapter does not allow for liquidation because it breaks the Tenth amendment and takes away states’ rights. The court can be given jurisdiction if the municipality allows it, which gives them extra protection.
V.K. writes about bankruptcy and reputable bankruptcy lawyers like Jasmine Motazedi.