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Need to Know Governing Laws of Chapter 11

Need to Know Governing Laws of Chapter 11

Like the other forms of bankruptcy relief,
but to a larger extent, Chapter 11 law is supplemented by the Federal
Rules of Bankruptcy Procedure, which are handed down to bankruptcy courts by
the Supreme Court
. The Federal Rules of Bankruptcy Procedure govern legal events, such as adversary litigation in bankruptcy matters, time
constraints for motions to be filed, and conditions for appeal to a higher
court.

         

Currently, and like the other forms of bankruptcy relief, Chapter
11 law itself is housed within Title 11 of the United States Code. Chapter
11 bankruptcy law is composed of four subchapters that deal with specific
aspects of corporate reorganization proceedings. The first deals with the
logistics of Chapter 11 bankruptcy proceedings, namely the roles and
responsibilities of each party involved, if applicable. The second is concerned
with the formation, discussion and confirmation of a reorganization plan. The
third is devoted to typing up post-confirmation loose ends, and the fourth
deals in particular with railroad reorganization, perhaps showing the age of
the laws that influenced the chapter as a whole.

      

As for those predecessors to Chapter 11
law, it should be noted that the component parts of Chapter 11 bankruptcy
law were once separate subsections of the Bankruptcy Code. They were
united into Chapter 11 law as we know it today by virtue of the Bankruptcy
Reform Act of 1978
.

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