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