1

Why there is no chapter 8 bankruptcy?

I am a novice in law with no background in legal studies, but in business news, companies file for chapter 7 or chapter 11 bankruptcy. I am wondering what are these chapters and what is chapter 8, why only chapter 7 and 11 deals with business bankruptcy?

4
  • Looking at law.cornell.edu/uscode/text/11 (click the Notes tab), it says that Chapter 8 (sections 800-899) was repealed, but doesn't say when or what it previously contained. But as of now, USC Title 11 has no Chapter 8 at all. Oct 5, 2020 at 0:23
  • Thank you Nate. These repeal of laws are done by the President or Congressmen(also including the SC ruling)? Oct 5, 2020 at 0:28
  • Repealing a law works exactly the same way as passing a new one: both houses of Congress pass a bill, and either the President signs it, or the President vetoes it and Congress can try to override the veto. Often there will be a single bill that repeals existing law and creates something new to replace it. Oct 5, 2020 at 0:29
  • Okay, thank you. Oct 5, 2020 at 0:31

1 Answer 1

2

The law which handles this is Title 11 of the United States Code, which has had several chapters repealed so there is no Chapter 8.

The Title covers all manner of bankruptcy, including liquidation (where the entity ceases to exist as a trading entity), which is Chapter 7, and reorganization (where the entity gains protection from their creditors while trying to re-organize into a profitable trading entity), which is Chapter 11. Other chapters deal with things such as estates etc.

1
  • Thank you very much for the quick help. Oct 5, 2020 at 0:27

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .