We've talked a lot about rebuilding credit after bankruptcy; but building a substantial and adequate nest egg after bankruptcy is just as important. But how can debtors' exiting bankruptcy find financial strategies which will create stability now and in the future? Let's take a look at a few tips: 1. Get a long-term financial vision [...]
The Dallas Stars hockey team intends to sell their team in bankruptcy for a reported $230 million. The proposed bankruptcy sale will include an auction with Canadian businessman Tom Gaglarid as the favored bidder despite the opportunity for other bidders to enter the fray. "With the Stars, I don't think you'll see a bidding war," said [...]
Technically speaking, a business in Chapter 11 bankruptcy cannot receive a discharge of their debts. However, there is a way that a bankruptcy debtor in this chapter can receive debt forgiveness from their creditors. One of the most common ways of doing this is the "credit bid." A credit bid is when a creditor purchases [...]
Democratic Rep. John Conyers Jr. of Michigan and Republican Rep. Lamar Smith of Texas sent Washington a proposal to change the bankruptcy law so that businesses seeking bankruptcy protection must do so in the state where they primarily operate their business. Currently, bankruptcy law allows business debtors to file bankruptcy in the state which they [...]
When Creditors Violate the Automatic Stay In most cases when a debtor files bankruptcy, creditors stop all actions against them, including lawsuits and garnishments. However, sometimes there are creditors who, either because of ignorance or stubbornness, violate the automatic stay. When that happens debtors may need to take legal action. But first let's talk about [...]
Filing bankruptcy helps debtors discharge debt; but more importantly it helps them protect their valuable assets from creditors. When a debtor decides to file bankruptcy, the most important decision they will make is whether or not they will protect an asset. Chapter 7 bankruptcy allows the debtor to discharge debt after liquidating nonexempt assets while [...]
In a recent Chapter 7 bankruptcy in Texas, a creditor attempted to have a debtor's bankruptcy discharge denied because they allegedly made a false oath. The bankruptcy code describes the parameters for which a debtor's discharge can be denied as the following: Denial of Discharge Under §727(a)(4)(A): False Oaths. Section 727(a)(4)(A) provides that: (a) The [...]
Elderly Americans have been hit hard by the recession. Falling home values, depreciating retirement accounts and shrinking pensions have conspired to place many senior citizens in financial troubles which are often only relieved by bankruptcy. Many senior citizens hit by the contraction of the economy are finding it difficult, if not impossible to pay credit [...]
In a recent Chapter 7 bankruptcy case, a creditor/plaintiff accused the debtor of obtaining financing under false pretenses, misrepresentation and fraud and asked the bankruptcy court to make the debt nondischargeable. The situation is one that serves as a warning against doing business with no written contract. The creditor/plaintiff in this bankruptcy case alleges that [...]
One of the biggest reasons why so many debtors fail to file bankruptcy as soon as they need it is because they are often paralyzed with fear about the bankruptcy process and the effects that bankruptcy will have on their life. Below are four reasons why debtors dealing with debt issues shouldn't fear bankruptcy: Bankruptcy [...]