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