SummaryIn University of Phoenix?s creating a Bankruptcy Plan exemplar the user encounters several(prenominal) bankruptcy situations in which the user must(prenominal) decide which chapter of the Bankruptcy Code to file and implement the enamor bankruptcy plans. The simulation begins with Cardew Printing, a small limited liability printing business, which has been running at a loss for several course of instructions. Cardew Printing is unable to make the agreed upon payments to its creditors and is faced with deciding between chapter 7 and chapter 11 bankruptcy. In 2005, the current year of this simulation, the number of business filings for Chapter 7 was 28,006 and Chapter 11 was 5,923. This is approximately a 5 to 1 ratio of Chapter 7 bankruptcy filings to Chapter 11 bankruptcy filings (U.S. Bankruptcy Courts, 2006).
I spot Chapter 11 for Cardew afterwardswards looking at key indicators, assets/liabilities, industry, and projected cash flow. Cardew?s high net receivables covered 30% of its liabilities and the recent procure of new high tech printing equipment gives the Cardew the ability to acquire a profitable market share. Chapter 11 bankruptcy requires a plan approved by debtors and creditors to pay a trustworthy amount of the debts and discharging the remainder. During the repayment period the company continues operation down the stairs court observation.
Standard time frames for Chapter 11 are intractable by the court and include: 180 days after petition for debtor to file a plan (18 calendar month maximum), 180 day period for the debtor to gather creditor acceptances (20 month maximum), Confirmation by court period varies on proceedings, and a repayment period of 3-5 years. The repayment plan I choose for Cardew spanned 3 years and paid the creditors in the following precession order: Steinway Commercial bank (repaid in 3 years), large(p) wages and benefits (repaid in 1 year), and Sawyers Printing Supplies (repaid...
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