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05/03/2012
U.S. and State of Ohio Reach $5.5 Million Settlement for Damages from Hazardous Releases in Lower Ashtabula River and Harbor
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05/03/2012
Federal Court Shuts Down Texas Tax Return Preparer
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05/03/2012
Hyosung Corporation Executive Agrees to Plead Guilty to Obstruction of Justice for Submitting False Documents in an ATM Merger Investigation
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05/03/2012
UN highlights role of press freedom as catalyst for social and political change
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05/01/2012
President of Costa Rican Company Convicted in Half a Billion Dollar Fraud Scheme with Thousands of Victims Worldwide
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05/01/2012
Arizona Man Sentenced to Seven Years in Prison for Participating in International Child Pornography Ring
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05/01/2012
National Express and Petermann to Sell Off School Bus Contracts in Texas and Washington to Resolve Antitrust Concerns
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05/01/2012
Justice Department Reaches Settlement with Nations Largest Mortgage Insurance Provider to Resolve Allegations of Discrimination Against Women on Maternity Leave
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05/01/2012
Hitachi-LG Data Storage Inc. Executive Agrees to Plead Guilty for Participating in Bid-Rigging Conspiracies Involving Optical Disk Drives
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05/01/2012
Suspect Arrested in Robbery of US Bank Branch in Rockwood
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FAQ / What objectives and/or philosophies underlie the various United States insolvency laws?

In general terms, the primary objective of the Bankruptcy Code (at least as it relates to commercial business cases) is to establish a procedural framework for reorganizing or liquidating a business. However, there are at least two basic philosophies that underlie several of the Bankruptcy Code’s provisions. The first is the principle of equitable distribution, requiring the fair and equal treatment of all creditors and equity holders of the same class. The second reflects a preference in favor of reorganizations such that debtors with viable businesses that have value as going concerns are given an opportunity to restructure their debts in order to continue in business with a fresh start.

These philosophies are in marked contrast to the general objectives of various non-bankruptcy debtor/creditor laws which often operate only to protect the rights and interests of a debtor’s creditors. Under the Bankruptcy Code, the rights or claims of most creditors under non-bankruptcy debtor/creditor laws are temporarily suspended, may be modified and, in appropriate circumstances, partially or wholly discharged.

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