The Absolute Priority Rule is a Chapter 11 bankruptcy rule that provides that senior creditors must be fully paid before any junior creditors and stockholders receive any payments. Reference Desk 11 U. S. C. § 1129(b)(2)(B)(ii) [T]he holder of any claim or interest that is junior to the claims of such class will not receive […]
Articles Tagged: bankruptcy
Barton Doctrine
The Barton doctrine derives from the United State Supreme Court’s decision in Barton v. Barbour, 104 U.S. 126 (1881). It prohibits suits against “a bankruptcy trustee or other officer appointed by the bankruptcy court for acts done in the officer’s official capacity” without first obtaining leave of the bankruptcy court. In re Crown Vantage, Inc., […]
Chapter 7 Bankruptcy
The most common type of bankruptcy is Chapter 7. This type of bankruptcy is designed for people who, for one reason or another, cannot pay their existing debts. Chapter 7 bankruptcy is appropriate for people who have lost jobs since it relieves them of their debt obligation. (See, e.g., Not all debts are allowable under […]
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is much like Chapter 11 only Chapter 13 allows individuals to work out a repayment plan for at least part of their debt. Chapter 13 is usually a repayment plan that covers either three or five years. The debtor will agree to make a determined amount of monthly payment to the bankruptcy […]
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is primarily aimed at the business that has a lot of debt but they do not want to shut down operations. Chapter 11 is often referred to as reorganization bankruptcy because it allows the business to reorganize their finances so that they can hopefully remain solvent. Unlike other types of bankruptcy, Chapter […]
Barton Doctrine
The Barton doctrine derives from the United State Supreme Court’s decision in Barton v. Barbour, 104 U.S. 126 (1881). It prohibits suits against “a bankruptcy trustee or other officer appointed by the bankruptcy court for acts done in the officer’s official capacity” without first obtaining leave of the bankruptcy court. In re Crown Vantage, Inc., […]
Absolute Priority Rule
The Absolute Priority Rule is a Chapter 11 bankrupty rule that provides that senior crediors must be fully paid before any junior creditors and stockholders receive any payments. Reference Desk 11 U. S. C. § 1129(b)(2)(B)(ii) the holder of any claim or interest that is junior to the claims of such class will not receive or retain under the […]