Bankruptcy proceedings - sustany/dvg GitHub Wiki

A bankruptcy proceeding is a�legally�authorized�procedure that a bankruptcy case follows through the court system which consists of approving arrangements for the repayment of debts to relieve the debtor of their liability to creditors. The whole procedure occurs from the time of filing a bankruptcy petition until receiving a bankruptcy discharge.

Bankruptcy�law�regulates two types of bankruptcy proceedings:�liquidation�and reorganization.�The liquidation procedures governed�by�Chapter�7 are used after the�insolvency�of a company when suppliers are not paid anymore.�A reorganization procedure�serves to anticipate the financial difficulties of companies to allow for a reorganization before it is too late.�