Unit 5 Legal Environment of Business

Governs the rights and duties of a debtor when he cannot pay his creditors, and the rights of and remedies available to such creditors

• Bankruptcy Law

• Securities Law

• Intellectual Property Law

• Real Estate Law

Bankruptcy done by the debtor, who petitions the bankruptcy court for protection from creditors

• Involuntary Bankruptcy

• Voluntary Bankruptcy

• Automatic Stay

• Unsecured Creditors

Bankruptcy actions that are filed by creditors, who seek to force the commencement of proceedings in the hopes that they will get paid

• Involuntary Bankruptcy

• Voluntary Bankruptcy

• Automatic Stay

• Unsecured Creditors

Most Common Type of Bankruptcy.

• Chapter 7

• Chapter 9

• Chapter 11

• Chapter 12

Bankruptcy available only to municipalities such as cities or counties

• Chapter 7

• Chapter 9

• Chapter 11

• Chapter 12

Bankruptcy most commonly used by business entities

• Chapter 7

• Chapter 9

• Chapter 11

• Chapter 12

Bankruptcy used by family farms or fishermen

• Chapter 7

• Chapter 9

• Chapter 11

• Chapter 12

Individual Bankruptcy where the debt is adjusted for repayment

• Chapter 7

• Chapter 12

• Chapter 13

• Chapter 15

Bankruptcy actions involving foreign companies with debts to US based creditors

• Chapter 7

• Chapter 12

• Chapter 13

• Chapter 15

Law that covers the sale of, and other transactions involving, securities

• Bankruptcy Law

• Securities Law

• Real Estate Law

• Intellectual Property Law