What Is Chapter 5 Bankruptcy?

by Brandon Pickard ; Updated July 27, 2017

In the United States, you cannot file a Chapter 5 bankruptcy. There are six basic types of bankruptcy that can be filed. The most common types are Chapter 7, Chapter 11 and Chapter 13. However, there is a Chapter 5 in the bankruptcy code.

Subchapter I : Creditors and Claims

The first subchapter of Chapter 5 in the U.S. Bankruptcy code deals with the distribution of assets belonging to the debtor. It discusses what amount can be claimed by the estate for administrative purposes and the rate of interest that can be charged for tax claims.

Subchapter II: Debtors Duties and Other Benefits

Subchapter II discusses exemptions and exceptions to what type of debts can be discharged. It calls out the duties of the debtor and what the effect of debts being discharged will be.

The function and limitations of debt relief agencies are also outlined in subchapter 2.

Subchapter III: The Estate

Subchapter III is dedicated to the estate of the debtor. Statutory liens, rights and turnover of estate property are dealt with in this sub-chapter.

About the Author

Brandon Pickard is a business and current events writer from Reno, NV. He is working on his MBA from the University of Nevada, Reno with a emphasis in English. His 15 years of business experience along with his in-depth knowledge of current events brings a unique and entertaining writing style to his work.

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