this post was submitted on 26 Dec 2023
660 points (95.8% liked)
Memes
45726 readers
958 users here now
Rules:
- Be civil and nice.
- Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
What isn’t true that I was replying to is that chapter 11 bankruptcy is only for corporations and gazillionaires. Regular people can use 11 to their benefit often - especially if they aren’t so far in the hole they can’t see daylight.
Secured debt can be discharged without forfeiting the collateral by paying it off or coming to a new arrangement in a chapter 11 proceeding.
While there is a lot of discretion judges get in the vast majority of 7 or 13 proceedings, unsecured credit holders are entirely wiped out, or very nearly. Each individual case is different of course.