Category Archives: Bankruptcy
Adversary Proceedings Regarding Discharge of Debts
The major goal of a bankruptcy is the discharge of all or some of your debts, thereby giving you a fresh financial start. However, there may be grounds for a creditor or the bankruptcy trustee to object to the discharge of certain debts. This sometimes results in an adversary proceeding, which is a case within […]
How Often Can You File for Bankruptcy?
Often, successful completion of a single bankruptcy case is enough to put a debtor back into solvency, but there may be further financial crises in store that require additional filings. There is no limit to the number of times you may file for bankruptcy, but there are limits on how often you can do it. […]
The Effects of Bankruptcy on Your Tax Obligations
While tax obligations generally cannot be avoided by filing for bankruptcy, there are certain exceptions. Taxes may be dischargeable depending upon the nature of the tax debt and the debtor’s actions prior to filing bankruptcy. There are two prerequisites for seeking discharge of taxes in bankruptcy. First, the obligations must be for federal, state or […]
Avoiding Conduct That Could Amount to Bankruptcy Fraud
Fraud occurs when a person makes a material misstatement of fact with the intent of deceiving someone else for personal gain. Fraud committed by a debtor can derail a bankruptcy case and have other disastrous consequences. There are two general types of bankruptcy fraud: pre-filing fraud and fraud committed while the bankruptcy case is in […]
The Timeline for Completing Chapter 11: How to Avoid Delays
Chapter 11 bankruptcy offers a company the opportunity to get relief from debt, reorganize and emerge as a financially viable entity. It is a powerful remedy, but it can involve a lengthy process. A Chapter 11 can take anywhere from a few months to five years or more, depending on the size of the company […]
Understanding the Rules for Repeat Bankruptcy Filings
Even after getting a fresh start by filing for bankruptcy, it is possible to fall on hard times again. Whether due to an illness, job loss or something else, you may find yourself needing to consider a repeat bankruptcy. The good news is that you can file bankruptcy as many times as you need to […]
Meeting the Subchapter V Test of Being “Engaged in Commercial or Business Activities”
The Small Business Reorganization Act (SBRA), enacted in 2020, created a new procedure called Subchapter V, which made it easier for small businesses to file for Chapter 11 protection. Since then, Subchapter V has been used extensively to help business owners regroup, reorganize and return to solvency when they otherwise would have gone under. However, […]
What to Do if the Bankruptcy Trustee Tries to Dismiss Your Chapter 13 Case
The core benefit of Chapter 13 bankruptcy is that it restructures your unsecured debt into a three- to five-year repayment plan. However, you have an obligation to make those payments on time, every time. If you fall behind, the trustee in charge of your case could file a motion to dismiss if. If you are […]
Preparing for a Successful Chapter 11 Bankruptcy
A Chapter 11 bankruptcy — also called restructuring or reorganization — is filed by a company that cannot pay outstanding debts from its current revenue or existing assets. Rather than closing the doors, the company can remain in business by restructuring its debts so that it will ultimately become economically viable. Outstanding debts are repaid, […]
How Secured, Unsecured and Priority Claims Are Treated in Bankruptcy
Bankruptcy cases can involve three different classes of debts or claims: secured, unsecured and priority. Anyone involved in a bankruptcy as a debtor, creditor or interested third party should have a basic understanding of these types of claims and how each type is treated in a bankruptcy case. A secured claim is a financial obligation […]
