Bitcoin Bankruptcy: What the Heck Is Chapter 15?
Bitcoin has become a worldwide craze, and the failure of the Mt. Gox Bitcoin exchange rattled the entire market for the cybercurrency. But when Mt. Gox filed for bankruptcy protection in the U.S., it used an unfamiliar form of filing known as Chapter 15. Why did Mt. Gox choose that form of bankruptcy protection, and what does it mean?
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, explains Chapter 15 bankruptcies. Dan notes that most people are familiar with Chapter 11 reorganizations or Chapter 7 liquidations, with Chapter 9 municipal bankruptcies also climbing in public awareness lately. But as Dan says, Chapter 15 is used to coordinate international bankruptcy proceedings, with Mt. Gox having filed in Japan last month and now seeking to protect U.S. assets from separate actions outside Japan. Opponents argue that Mt. Gox's filing is a ruse, but the idea behind Chapter 15 makes sense to avoid international economic incidents.
Get a stock that's better than Bitcoin
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
The article Bitcoin Bankruptcy: What the Heck Is Chapter 15? originally appeared on Fool.com.
Dan Caplinger doesn't own shares of any companies mentioned in this article. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.