Our Videos

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 Codeís 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 debtorís 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.

Keywords: us united states,


AnnaMaria Realbuto
Thank you for all your assistance and efficiency...
Read More »
Kateryna Melnychenko
Thanks a lot Anton!...
Read More »
Rani Payne
Thank you so much! Iím sure I will be in touch again with something else that will need to be apost...
Read More »
Serge Bauer Law
Thank you again for your help with this case!...
Read More »


Q: What about military and other U.S. government employees stationed abroad?
Read More »
What to consider when purchasing an existing business?
Read More »
What are the requirements to hire a household employee or domestic worker, such as housekeeper, nanny or caretaker?
Read More »
When must a student apply for an OPT extension?
Read More »


December 5, 23
Taxpayer Beats IRS in Landmark Case on foreign bank reporting for dual residents
Read More »
December 4, 23
MO woman spends 5 years trying to get her nameless grandson a name and a birth certificate
Read More »
November 30, 23
New York enacts clean slate legislation for old criminal records
Read More »
November 29, 23
Russian soldier forges death certificate to dodge Ukraine War
Read More »