Tag: bankruptcy
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California Chapter 11 Bankruptcy Law
California Chapter 11 Bankruptcy Law California businesses have a couple of options to deal with dire financial conditions, and filing for a Chapter 11 bankruptcy can be an attractive option. However, it can be a bit complex, and to be successful, the business should consult experienced legal counsel to prepare the necessary filings. Definition Chapter…
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How Creditors Get Paid Under a Chapter 11 Plan
Obviously, the debtor doesn’t have sufficient ready funds to pay all creditors at the time of filing. Instead, an approved plan relies on future business earnings and profits to address creditor debts. The debt claims are prioritized with taxes owed being paid first. Secured claims will come next and unsecured debts follow third with partial…
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Don’t Declare Bankruptcy Before You Need To
Today, many people are deciding to declare bankruptcy. With so many people being laid off, a lot of people are deciding to file for bankruptcy but you need to realize that it is not for everyone. There are other ways to pay off debt without going to such an extreme; indeed, an option that should…
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How and When to Reopen a Bankruptcy Case
Sometimes people want to reopen a closed bankruptcy case because they failed to invoke important procedures while their bankruptcy case was open. Fortunately it’s usually possible to reopen the bankruptcy and play catch-up. Common reasons for wanting to reopen a bankruptcy case include: failing to timely file an Official Form 23 (pre-discharge counseling certification) failing…
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Chapter 11 Bankruptcy basic
Chapter 11 bankruptcy is a reorganization procedure used by businesses, including sole proprietors, partnerships, and corporations. The debtor in chapter 11 files a petition which includes a list of assets and liabilities, and a detailed statement of financial affairs. The debtor will typically act as his own trustee, called a “debtor in possession”,…
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The Homeowners struggle
Warren op-ed: Banking on Hypocrisy posted by Katie Porter Check out Credit Slips co-blogger Elizabeth Warren’s op-ed on Politico, entitled Banking on Hypocrisy. She quotes extensively from a letter that the American Bankers Association sent to banking regulators in 2006 in opposition to the proposed intra-agency guidance that would have required better underwriting of nontraditional…
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Mortgage servicing and standing
Cramdown Controversy #2–Will I “Succeed?” posted by Katie Porter Our active readers at Credit Slips already started debating the second controversy about the pending cramdown legislation: is the failure rate of chapter 13 too high to make mortgage modification in bankruptcy a very useful tool? To briefly reprise that discussion and add my own gloss,…
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Mortgage Debt & Home Equity
Mortgage Fees in Chapter 13: Rules to the Rescue? posted by Gene Wedoff In a February post to Credit Slips, Katie Porter pointed out a recurring problem for U.S. debtors trying to deal with mortgage defaults through a Chapter 13 plan. They can make all of the payments needed to cure their pre-bankruptcy defaults and…
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Debt settlement: A costly escape not always the best solution
Negotiating away your bills is legal, but it may not be your best solution. And sometimes, hiring a professional to help you isn’t as good an idea as doing it yourself. If you’re drowning in unpaid bills and desperately looking for a way out, chances are you’ve come across an offer that sounds something like…
abc Assignment for benefit of creditors 