In the Chapter 7 bankruptcy of a debtor who served as the President and CEO of a company, the bankruptcy court ruled that the debtor could not discharge debt incurred after recklessly taking out loans from the company. The details of the bankruptcy case: The debtor in this case took out 75 loans from the [...]
In the bankruptcy case of an unregistered architect here in Texas, the former clients of the debtor submitted a claim saying that the debtor breached contract and/or that their oral contract is void because he is not a registered architect. After hiring the debtor to perform architectural work on their home, the claimants also [...]
Ideally, companies filing Chapter 11 bankruptcy want to enter and exit bankruptcy as quickly as possible. But sometimes a bankruptcy case can move so fast that it can cause problems for both the creditors and the bankruptcy trustee. Below are a few issues that may arise in a "too fast" Chapter 11 bankruptcy case: If [...]
Yes, tax season is over, but the battle of tax refund anticipation loans is still ongoing. The Federal Deposit Insurance Corp. (FDIC) is going after Republic Bank & Trust Co., the last bank standing who issues tax refund anticipation loans. The FDIC claims that the bank is mismanaging its refund anticipation loan program and that [...]
Rep. Marcy Kaptur has submitted a resolution to the House Financial Services Committee asking President Barack Obama to declare a national state of emergency for the foreclosure crisis. The resolution sites a variety of issues troubling the housing market stating, "Whereas the United States finds its housing market in a precarious and unstable state, where [...]
After failing to secure a buyer in Chapter 11 bankruptcy, Borders is headed to liquidation closing down 400 bookstores around the nation and putting 11,000 people out of work. Borders was unable to overcome competition from larger rival Barnes & Noble Inc (BKS.N) and from Amazon.com Inc (AMZN.O), which began to dominate book retail when [...]
A debtor who was convicted of bankruptcy fraud in 2004 has been finally apprehended by authorities in Mexico and put in jail. Farris, 49, the former owner of Farris Gallery in St. Louis, was sentenced Friday to 14 months in prison for failure to appear. It ended an ordeal that began in July 2004, when [...]
During the Great Depression, the bankruptcy code was altered so that local governments could seek protection from creditors in bankruptcy. Since the creation of Chapter 9 bankruptcy, only 623 municipalities have filed bankruptcy. But some states are terrified that the number could increase. Because of this fear, 25 states have made moves to either restrict or [...]
Bankruptcy Preparer Scams The U.S. Bankruptcy Court is searching for a bankruptcy preparer who has scammed several customers seeking to file a bankruptcy petition. Dawn Gomez Bess was banned by a federal judge in October from preparing bankruptcy paperwork, but the court says she continued to do so. The court says she took money from [...]
The Chapter 7 bankruptcy of a debtor was dismissed after he who admitted wanting to use the bankruptcy as leverage against creditors and failed to disclose material facts in his petition. The Bankruptcy Code Section 727(a) provides that: (a) The court shall grant the debtor a discharge, unless- (2) the debtor, with intent to hinder, [...]