Bankruptcy in the United States is a matter involved under the federal jurisdiction by the United States Constitution.
The bankruptcy cases are filed in United States Bankruptcy Court.
However, concerning the claims and exemptions, the jurisdiction is dependent on State law.
There are six types of bankruptcy. These include:
- Chapter 7,
- Chapter 9,
- Chapter 11,
- Chapter 12,
- Chapter 13,
- and Chapter 15.
Other than these, there are the filings of bankruptcies, which occur when the former fails. It is very much about Chapter 22 filing.
Chapter 22 filing of bankruptcy is considered when the debtors filing for Chapter 11 protection pursues the process a second time.
The Chapter 11 bankruptcy filing teaches the fact that the debtor has the ownership of the assets.
By the legal terminology, the debtor is called Debtor in possession(DIP).
This particular DIP executes the business. It is the creditors and the debtor together, which formulate a plan for meeting the requirements.
There are two chances, probably with this particular aspect.
- The first one is that the creditor confirms the plan,
- and the second one is that the majority of the creditors vote against the same.
While in the former case, the debtor will continue to operate, it is in the later that there is a need for filing the protection for a second time.
In an informal language, this process of filing for a second time is known as Chapter 22 filing, and the debtors are known as Chapter 22 filers.