What Is Chapter 12? Chapter 12 is a category of bankruptcy in the United States that applies specifically to farms and fisheries. It allows proprietors of farms and fisheries to reorganize their finances and debts while still maintaining ownership of their assets. Generally, debtors in such cases work with a bankruptcy trustee and creditors to
What Is Chapter 13? Chapter 13 refers to a U.S. bankruptcy proceeding in which debtors undertake a reorganization of their finances under the supervision and approval of the courts. Individuals and married couples, even if self-employed or operating an unincorporated business, are eligible to file for Chapter 13 bankruptcy. As part of a Chapter 13
What Is Chapter 15 Bankruptcy? Chapter 15 is a section in the U.S. Bankruptcy Code that was added in 2005 to provide for cooperation between U.S. courts and foreign courts when foreign bankruptcy proceedings touch upon U.S. financial interests. The section was added in response to a United Nations recommendation for cooperation among nations on
What Is Chapter 7? Bankruptcy is a serious business, so you need to understand it clearly. Chapter 7 of Title 11 in the U.S. bankruptcy code controls the process of asset liquidation. A bankruptcy trustee is appointed to liquidate nonexempt assets to pay creditors; after the proceeds are exhausted, the remaining debt is discharged. There are eligibility requirements
What Is Chapter 9? Chapter 9 is a bankruptcy proceeding that provides financially distressed municipalities with protection from creditors by creating a plan between the municipality and its creditors to resolve the outstanding debt. Municipalities, as defined for Chapter 9 bankruptcy proceedings, include a wide variety of governmental entities such as cities, counties, townships, municipal
What Is a Character Loan? A character loan is a type of unsecured loan that is made because of the lender’s faith in the borrower’s reputation and credit. Borrowers are typically able to obtain only small loans by this method. If the borrower is unable to repay the loan, the bank will most likely encounter considerable difficulty
What Is a Charge And Discharge Statement? A charge and discharge statement is an accounting statement for an account or estate over which someone has a fiduciary responsibility. Charge and discharge statements ultimately reconcile all distributions of income and principal going into and out of the account or estate, giving fiduciaries a clear snapshot of the
What Is a Chargeback? A chargeback is a charge that is returned to a payment card after a customer successfully disputes an item on their account statement or transactions report. A chargeback may occur on debit cards (and the underlying bank account) or on credit cards. Chargebacks can be granted to a cardholder for a
What Is a Chargeback Period? A chargeback period is the time frame during which a credit card holder can dispute a credit card transaction with a merchant. Disputed charges within the chargeback period typically are credited back to the cardholder while the dispute is resolved. Chargeback periods vary by the payment processor and by transaction
What Is a Charge-Off? A charge-off is a debt, for example on a credit card, that is deemed unlikely to be collected by the creditor because the borrower has become substantially delinquent after a period of time. However, a charge-off does not mean a write-off of the debt entirely. Having a charge-off can mean serious repercussions
