Friday, January 19, 2018
Bankruptcy filings at the District Court of Guam showed no significant increase or decrease over previous periods for the 12 months ending September 30, 2017.
Chapter 13 filings increased and Chapter 7 filings decreased, but the total number of filings over that period were consistent with past years.
- Chapter 7: Liquidation Under the Bankruptcy Code. This chapter of the Bankruptcy Code provides for "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.
- Chapter 11: Reorganization Under the Bankruptcy Code. This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.
- Chapter 13: Individual Debt Adjustment. A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.
- Chapter 15: Ancillary and Other Cross-Border Cases. Chapter 15 is a new chapter added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It is the U.S. domestic adoption of the Model Law on Cross-Border Insolvency promulgated by the United Nations Commission on International Trade Law ("UNCITRAL") in 1997, and it replaces section 304 of the Bankruptcy Code.
- An adversary proceeding (or “AP”) is a lawsuit filed separate from but related to the bankruptcy case. It is an action commenced by one or more Plaintiffs filing a Complaint against one or more Defendants and resembles a typical civil case.