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In all cases initiated under Title 11 (the "Code"), debtors in
bankruptcy have a wide assortment of tools and alternatives for the
elimination of debts, or alternatively, the partial payment of debts
upon restructured terms. A few of these tools include:
- Discharging debts through Chapter 7 without further payment of any
kind
- Reorganizing debts through Chapter 13 for lower payments, lower
interest, extended payout periods, and reduction of late fees.
- Partial discharge of debts after payment through a reorganization
plan
- Redemption of Property from collection proceedings
- Reaffirmation of debts to prevent discharge and loss of collateral
For even more extensive options, rights, entitlements and duties, a
debtor-in-possession under Chapter 11 may repudiate commitments, void
contracts, and discharge debts while remaining in business.
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