The team Marussia has filed for the equivalent of Chapter 11 bankruptcy. This step of the team was preceded by another Formula One Company Caterham in less than a week; it as well had filed the same chapter of bankruptcy. This is evidently being pursued to gain protection from the creditors.

But before you reach to the details of this particular chapter of bankruptcy aiding the company, it is important that you understand the concept behind Chapter 11 bankruptcy.

The Chapter 11 bankruptcy is intended with the objective to pursue the reorganization of businesses which are dealing with heavy debt burdens. In order to hold the creditors at bay, this chapter is filed. It enables the debtor to propose a plan. This plan is centered on planning, profitability after bankruptcy. It is thus evitable that with the aid of filing this chapter of bankruptcy the Formula One team Marussia will be profited.

The following procedure is pursued:-

  • When the debtor files the bankruptcy chapter, either a separate trustee is appointed for the cause or the debtor in possession becomes the acting trustee.
  • The debtor in possession is then required to come up with reorganization plans.
  • Now, the debtor is in the position wherein it can acquire financing and loans on favorable terms.
  • In fact, there is also the possibility that the court can cancel or reject the contracts.
  • There is also pursued an automatic stay so as to protect the debtors.
  • It is the court which decides with regards to the reorganization plan.
Related Posts
Filed For Chapter 7 Bankruptcy
Looking for Chapter 7 or Chapter 13 bankruptcy lawyer ? Find a bankruptcy lawyer for free we helped many bankruptcy cases like yours.   I am 24 years old, I am a ...
READ MORE
Chapter 7 bankruptcy lawyer
Just a few days ago, my friend Larry declared himself bankrupt. Things had not been going well for him since Sarah and he found themselves overwhelmed with the car and ...
READ MORE
Chapter 7 Bankruptcy
If you go for Chapter 7 bankruptcy, you may have a lot or all of your debts canceled. On the other hand, you might need to sell some or all ...
READ MORE
What is involved in filing for bankruptcy
People who are having problems paying their financial obligations sometimes consider bankruptcy to acquire comfort from selection initiatives, remove some or all of their financial obligations or rebuild their debt ...
READ MORE
Bankruptcy filling without an attorney
Within the 2005 legal guidelines, customers have to choose credit score guidance before submitting a new individual bankruptcy request. Consumers are also subjected to an easy method check, to determine ...
READ MORE
Student loan defensible? some facts
Education is the paradigm for success. Students go for higher education in order to replenish their monetary requirements, for their safe future and a sound life. But, when you witness ...
READ MORE
Need To File Bankruptcy
Chapter 7 bankruptcy can be filed easily depending upon your case. Also charges to file your case can go from free to higher again depending up the case. You can ...
READ MORE
Filing for Bankruptcy
Hiring a lawyer to file for bankruptcy can be expensive, since the lawyer’s fees comprises of a huge chunk of bankruptcy expenses. However, filing for bankruptcy can be done by ...
READ MORE
Bankruptcy
Bankruptcy laws are made for the help of the people who can no longer pay their creditors get a chance to pay that is by liquidating assets or by creating ...
READ MORE
Stockton exit imposed losses on bondholders
The date of February 25, 2015 witnessed a new chapter in the life of the Stockton community. It was this day when the bankruptcy exit plan became effective. There were ...
READ MORE
Filed For Chapter 7 Bankruptcy
Chapter 7 bankruptcy lawyer
Chapter 7 Bankruptcy
What is involved in filing for bankruptcy
Bankruptcy filling without an attorney
Student loan defensible? some facts
Need To File Bankruptcy
Filing for Bankruptcy without a Lawyer
Bankruptcy
Stockton exit imposed losses on bondholders