straight bankruptcy

Straight bankruptcy (Chapter 7).
A proceeding designed to liquidate the debtor's property, pay off his or her creditors, and discharge the debtor from his or her other debts. It can be either voluntary (started by the debtor himself or herself) or involuntary (started by the debtor's creditors)
Compare business reorganizations (Chapter 11); wage earner's plan (Chapter 13), which are rehabilitative proceedings (See rehabilitation (Corporations).

Black's law dictionary. . 1990.

Look at other dictionaries:

  • straight bankruptcy — an informal term for a Chapter 7 bankruptcy or liquidation; used more commonly to describe liquidation before the Bankruptcy Reform Act of 1978 (Glossary of Common Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

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  • bankruptcy, Chapter 7 — n. Straight bankruptcy; a proceeding that liquidates property, pays off debts, and leaves the debtor discharged. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • Bankruptcy — Notice of closure attached to the door of a computer store the day after its parent company declared bankruptcy (strictly, put into administration see text) in the United Kingdom. Bankruptcy is a legal status of an insolvent person or an… …   Wikipedia

  • bankruptcy proceedings — General term for the various types of proceedings under the Bankruptcy Code (11 U.S.C.A.) that are initiated either by an insolvent individual or business (termed a voluntary bankruptcy) or by creditors (termed an involuntary bankruptcy) seeking… …   Black's law dictionary

  • bankruptcy — /bangk rupt see, reuhp see/, n., pl. bankruptcies. 1. the state of being or becoming bankrupt. 2. utter ruin, failure, depletion, or the like. [1690 1700; BANKRUPT + CY] * * * Status of a debtor who has been declared by judicial process to be… …   Universalium

  • Bankruptcy Code — A federal law (11 U.S.C.A.) for the benefit and relief of creditors and their debtors in cases in which the latter are unable or unwilling to pay their debts. The Bankruptcy Code of 1978 substantially revised and replaced the Bankruptcy Act of… …   Black's law dictionary

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  • Chapter 7 bankruptcy —    Liquidation or straight bankruptcy, the most familiar sort, in which many or all debts are discharged (i.e., wiped out) completely in exchange for an individual s or business nonexempt property. Proceeds are distributed to creditors. Chapter 7 …   Business law dictionary

  • Chapter 7 (liquidation) bankruptcy — See bankruptcy proceedings (straight bankruptcy) …   Black's law dictionary

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