Examples of Debtor in bankruptcy in a sentence
While the general rule under the Internal Revenue Code of 1986, as amended ("IRC") is that income from the discharge of indebtedness is included in a taxpayer's gross income, Debtor in bankruptcy are entitled to exclude from gross income, for federal income tax purposes, any amount which, but for 26 U.S.C.§108(a), would be includible in gross income by reason of discharge of indebtedness.
To that end, and not in derogation of any of the Commission's regulatory authority over the License, Debtor hereby acknowledges that the Commission has a first security interest in the Collateral, and Debtor shall not dispute such first security interest, or the Commission's rights as a secured party hereunder, in any legal or equitable proceeding in which Debtor, or any assignee or trustee of the estate of Debtor in bankruptcy, is a party.
Each Subordinated Lender shall agree that, until the indefeasible payment in full of the Senior Debt Obligations, it will not, whether or not any default shall exist under any Transaction Document, (a) commence any proceeding against the Debtor in bankruptcy, insolvency or receivership, (b) take any collateral security, guaranty or other assurance for the Subordinated Debt or (c) otherwise exercise any remedy for the recovery of any Subordinated Debt.
S.D.N.Y. 2009).Here the Receiver made the decision to place the Debtor in bankruptcy in good faith to maximize the value of the Debtor and its property for the benefit of its estate and all parties in interest.
However, when the taxpayer whose indebtedness is discharged in exchange for consideration in an amount less than the face amount of the indebtedness is a Debtor in bankruptcy proceedings, the discharge of indebtedness income is not currently recognized.