What is bankruptcy? Section 103 of the Bankruptcy Code
What is bankruptcy?
Section 103 – Applicability of Chapters
Section 103 explains which chapters, sections, and subsections apply to which chapters. This section is inclusive and exclusive. It prevents the reader of the code from attempting to determine whether one section applies to all chapters or to only one chapter, among other benefits. It is a helpful legend to the code and its sections.
1. Chapters 1, 3, and 5 of the bankruptcy code apply to cases filed under chapter 7.
2. Subchapter 1 (Officers and Administration) and subchapter 2 (Collection, Liquidation, and Distribution of the Estate) of chapter 7 apply only to chapter 7 cases.
3. Subchapter 3 (Stockbroker Liquidation) of chapter 7 only applies to chapter 7 case concerning a stockbroker.
4. Subchapter 4 (Commodity Broker Liquidation) of chapter 7 only applies to a chapter 7 case concerning a commodity broker.
5. Subchapter 5 (Clearing Bank Liquidation) of chapter 6 only applies to clearing banks filing under chapter 7.
6. Chapter 13 of the bankruptcy code only applies to cases filed under chapter 13.
For more information on bankruptcy,contact the Rashid Law Firm for a free initial consultation with a Houston Bankruptcy Attorney at 832-209-8833.