CreditLine Inc. joins with other creditors to force Deli Sandwich Shop, a debtor, into bankruptcy. One of the goals of bankruptcy law with respect to creditors is to

Question

CreditLine Inc. joins with other creditors to force Deli Sandwich Shop, a debtor, into bankruptcy. One of the goals of bankruptcy law with respect to creditors is to​

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One of the main goals of bankruptcy law with regards to creditors is to provide equitable treatment in the competition for debtor assets. This means that all creditors should have a fair and equal chance of receiving payment from the debtor's assets. Bankruptcy law also aims to facilitate a structured and orderly process for repayment of debts and the distribution of assets among creditors. Protecting creditor assets from diminution in value is also an important consideration, but it is not the primary goal of bankruptcy law. Ensuring that creditors will continue to lend to insolvent debtors is not a goal of bankruptcy law because it is not the role of the law to encourage or discourage lending practices. Making all debtor property available for creditor claims may be one outcome of the bankruptcy process, but it is not a goal in and of itself.