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Chang Chokaski's avatar

Slight correction: Biden's bankruptcy bill targeted only one aspect of debt - educational/student loans - making it harder to discharge these loans.

In terms of corporate bankruptcies, there are 2 primary ones - chapter 7 and chapter 11. And NO, is is NOT "sail on through with all debts erased". The corporation has to sell-off all its assets to pay the debts (in a certain pecking order) or re-organize/re-finance its debts (if it wishes to continue to exist).

Corporate Bankruptcy: How It Works, What It Means for Investors (https://www.investopedia.com/articles/01/120501.asp)

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Marci Sudlow's avatar

https://en.wikipedia.org/wiki/Bankruptcy_Abuse_Prevention_and_Consumer_Protection_Act

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)

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Chang Chokaski's avatar

Yes, I know that, my comment was about the "incorrect framing" in your comment pertaining to corporate bankruptcies.

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