LAW 1310 Lecture Notes - Lecture 18: Student Loan, Johns Manville
24 Apr 2018
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Tools for businesses that are in trouble. Now it is looked upon as a business tool. The bankruptcy code is looked mainly by congress every 40-70 years. Modern bankruptcy code came out- very big deal. When you have more liabilities than assets, it is called balance sheet involvement. Company can file bankruptcy if it is unable to pay its debt at a future date. No need to price, just need to say that companies are unable to pay a debt. Joh(cid:374)"s (cid:271)usi(cid:374)esses started to get sued (cid:373)a(cid:374)y times had no insurance no money. Eventually, the legal expenses of these law suits, they would go broke. Ho(cid:449)e(cid:448)er, they (cid:449)ere goi(cid:374)g to (cid:271)e e(cid:448)e(cid:374)tually (cid:271)roke so they decided to file for bankruptcy. They used the bankruptcy law to save the business. Chapter 7 is a bankruptcy chapter that both people and businesses can file for.
