In the context of bankruptcy, the term "establishment" refers to any location where a debtor conducts ongoing economic activities that are not temporary. This can include offices, factories, or any other facilities where business operations take place. Understanding this definition is crucial for recognizing how bankruptcy laws apply to various business entities and their operations.
The term "establishment" is commonly used in bankruptcy law, particularly in Chapter 15 of the Federal Bankruptcy Code, which deals with cross-border insolvency cases. This term is relevant in various legal contexts, including:
Users may find it beneficial to utilize legal templates from US Legal Forms to navigate the complexities of bankruptcy filings effectively.
Here are a couple of examples of abatement:
Example 1: A manufacturing company has a factory where it produces goods. This factory qualifies as an establishment under bankruptcy law because it is a location where the company conducts ongoing economic activities.
Example 2: A consulting firm operates from an office building where it provides services to clients. This office is also considered an establishment since it is not a temporary location for business operations.
According to the Federal Bankruptcy Code, specifically 11 USCS § 1502, the definition of "establishment" is outlined in the context of bankruptcy proceedings. This statute provides the legal framework for understanding how establishments are treated in bankruptcy cases.
| Term | Definition | Differences |
|---|---|---|
| Business Location | A physical site where business activities occur. | Establishment specifically refers to ongoing, non-transitory operations, while business location may include temporary sites. |
| Debtor | An individual or entity that owes money. | Establishment refers to the place of operations of the debtor, not the debtor themselves. |
If you believe the term "establishment" applies to your situation, consider the following steps:
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