How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
14232603
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

2. Peoples Savings & loan is a savings and loan corporation.

Resolved Question:

2. Peoples Savings & loan is a savings and loan corporation. Quality retail store is a sole proprietorship. Smith & Thomas is a marketing firm organized as a partnership. United Associates, Inc. is a professional corporation. Which of these is eligible to file for reorganization under chapter 11 of the bankruptcy code?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

Hi JACustomer,

Do you just need to know the actual answer, or do you also need an explanation?

Customer: replied 5 years ago.

answer and the explanation to it as why the companies dont qualify to be eligible and why this company is eligible for it

Expert:  cfortunato replied 5 years ago.

Bankruptcy Stat. 109(d) provides that, "[o]nly a railroad, a person that may be a debtor under chapter 7 of this title, and an uninsured State member bank, or a corporation organized under section 25A of the Federal Reserve Act...may be a debtor under chapter 11...".

Bankruptcy Stat. 109(b) provides that, "[a] person may be a debtor under chapter 7...only if such a person is not - 1) a railroad; 2) a domestic insurance company, bank, savings bank, cooperative bank, savings and loan association...; 3) (A) a foreign insurance company...; (B) a foreign bank...".

Bankruptcy Stat. 101(41) defines "person" as an "individual, partnership, and corporation...".

In the business form "sole proprietorship" there is no distinction between the individual and the business - the business is the individual.

Accordingly, the Peoples Savings and Loan Association is the only one of the 4 choices that is not eligible for re-organization under Chapter 11 of the Bankruptcy Code.

 

Customer: replied 5 years ago.
did this work lol
Expert:  cfortunato replied 5 years ago.

Yes - it worked!

The Bankruptcy code provides that savings and loan associations may not re-organize under Chapter 11. Most sole proprietorships, partnerships, and corporations may re-organize, including retail stores, marketing firms, and professional corporations.

Accordingly, the Peoples Savings and Loan is the only one of the 4 choices that cannot re-organize under Chapter 11.

 

I think this is what you wanted to know. If not, please let me know.
Thank you!

cfortunato and 2 other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions