"Special chapter 7 cases" [2019] ELECD 2089; in Lubben, Stephen (ed), "American Business Bankruptcy" (Edward Elgar Publishing, 2019) 91

Book Title: American Business Bankruptcy

Editor(s): Lubben, Stephen

Publisher: Edward Elgar Publishing

Section: Chapter 10

Section Title: Special chapter 7 cases

Number of pages: 4

Abstract/Description:

Three subchapters of chapter 7 provide special liquidation procedures for debtors in regulated industries. For both stock and commodity brokers, these special subchapters are the only way in which these debtors can file a case under the Bankruptcy Code. SIPC registered brokers are liquidated under the Securities Investor Protection Act, so chapter 7 only plays a limited role with regard to stock brokers. Similarly, subchapter V applies to perhaps only two entities (CLS Bank and the Depository Trust Company), but these entities can also file under chapter 11 (and the Federal Reserve also has some ability to place either into a receivership).