THE ELEMENTS OF BANKRUPTCY

THE ELEMENTS OF BANKRUPTCY Name: Institution: Businesses as well as individuals may experience bankruptcy from time to time. Bankruptcy refers to that state of being in lack in value and or in quality. In the Uniform Commercial Code, it is the process through which consumers as well as businesses may eliminate their debts in part or the entire debt under the federal court protection. In chapters 7, 11 and 13, there are various elements pertaining bankruptcy (Cheeseman, 2013). Bankruptcy in chapter Seven (7) falls in the category of liquidation. It is termed so because the trustee of the bankruptcy may liquidate (take and sell) your property in order to repay your debt. However, the property that is under protection may be kept by you and it is known as exempt. Despite the fact that there are so many elements in bankruptcy, chapter 13 bears most for the consumers (Cheeseman, 2013). This is where consumers keep a...