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To: Reilly Diefenbach who wrote (149432)	10/29/2002 4:33:16 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 164684

name of Chapter in BK is not so important in a restructure BK, all debt is negotiated but such negotiation is overseen by a judge to ensure prudent proceeding with fairness to creditors I am not a BK lawyer but I do know of two types -- liquidation, restructure / jim

To: Reilly Diefenbach who wrote (149432)	10/29/2002 6:21:33 PM
From: hdl	Respond to of 164684

chapter 7 is a liquidation by a chapter 7 trustee. it is usually for individuals. the debtor wipes out his dischargeable debts. he gives up his non-exempt assets. a corporation or partnership can be in a 7, also. a chapter 13 has limits on how much debt and how much secured debt one can have. there is a plan. it is not negotiated. the debtor just files it. it must provide creditors with more than they would get in a 7. the debtor keeps assets, such as a house. the debtor pays something to creditors under the plan. a corporation cannot file a 13. a chapter 11 can involve an individual, corporation or partnership. it is much more expensive. the debtor has a period when it alne can file a plan. it cannot confirm the plan unless it is accepted by creditors in the requisite % of numbers and amount. it has to comply with many things in the bankruptcy code. to confirm it must meet the standards of section 1129 of the code. the debtor can continue to operate. its pre-petition creditors are stayed. management may remain in charge of operations.