Bankruptcy Basics ::
Securities Investor Protection Act (SIPA)
Although the Bankruptcy Code provides for a stockbroker liquidation proceeding (11 U.S.C. § 741 et seq.), it is far more likely that a failing brokerage will find itself involved in a proceeding under the Securities Investor Protection Act of 1970 ("SIPA") (15 U.S.C. §§ 78aaa et seq.), rather than a Bankruptcy Code liquidation case.
- Overview
- History
- SIPA
- Bankruptcy Liquidation versus the SIPA Liquidation in Bankruptcy Court
- Role of the District Court
- Removal to Bankruptcy Court
- Liquidation Proceedings
- Powers of the Trustee
- Claims
- Distribution
- Advances
- Direct Payment Under SIPA Outside the Bankruptcy Court
- Role of Securities and Exchange Commission
- Compensation in a SIPA Action
