Monthly Archives: October 2020
What Is a Debtor-in-Possession?
A business contemplating bankruptcy usually has two options: Filing for Chapter 7 or Chapter 11. In a Chapter 7 case, the business is closed and its assets are liquidated by a court-appointed bankruptcy trustee. The trustee effectively assumes ownership of the assets and ensures any proceeds from their sale are distributed to the creditors… Read More »
How Can an Emergency Bankruptcy Filing Help Me?
Bankruptcy provides an orderly process for an individual or business to discharge or restructure their debts. Bankruptcy is not quick. It requires filing a number of forms and dealing with multiple parties, including the bankruptcy judge, the bankruptcy trustee, and of course creditors. There are some cases where a debtor needs to expedite matters… Read More »
Challenges Associated With Co-Owned Property and Bankruptcies
When a debtor files for bankruptcy under Chapter 7 or Chapter 13, the law automatically creates what is known as a bankruptcy estate. This estate includes all of the debtor’s property that is not otherwise exempt from bankruptcy under federal or state law. In this context, the debtor’s property, and thus the bankruptcy estate,… Read More »
Higher Income Earners and Bankruptcy
There is sometimes a misconception that bankruptcy is only available to people with little or no income, such as individuals who are unemployed. This is simply not true. Anyone whose debts exceed their ability to repay can seek bankruptcy protection. This includes many people who are considered “higher income earners.” And while your income… Read More »
Saving the Family Farm Through Chapter 12 Bankruptcy
If you operate a family-owned farm that is saddled with significant debts, federal law provides a lifeboat in the form of Chapter 12 bankruptcy. While not as well-known as other types of bankruptcy, including Chapter 11 and Chapter 13, a Chapter 12 filing can help family farms stay in business while working towards repaying… Read More »
Secured Creditor and Bankruptcy Claim Buyer Representation
When someone who owes you money files for bankruptcy, you now have what is known as a “creditor claim” against that individual. Creditor claims are classified as either secured or unsecured. A secured claim means that the creditor has a lien against a specific piece of property owned by the debtor, such as their… Read More »
Reaffirmation Agreements: When You Don’t Want to Discharge a Debt
The point of bankruptcy is to discharge debt and give the debtor a fresh start. Most debtors who file bankruptcy want to eliminate debt, start over, and perhaps use whatever income they have to pay their normal living expenses, instead of paying debt. But what happens when a debtor wants to pay off a… Read More »
Using Credit Cards Before Bankruptcy Can Cause Serious Problems
If you are in financial trouble, you may be resorting to using credit cards to pay living expenses, pay debts, or just keep your head afloat financially. However, that understandable position can wind up getting you in some trouble if you are thinking about filing for bankruptcy anytime soon. Limits on Pre-Bankruptcy Charges As… Read More »
Modifying Payments in a Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy, you agree to pay your creditors some of the money that is owed to them over a period of 3-5 years. While paying money doesn’t always sound desirable, whatever you do pay during that time will be far less than what you would have owed had you not filed… Read More »
