Category Archives: Bankruptcy
Does Subchapter V Allow Corporations to Discharge Debts Based on Fraud?
The Small Business Reorganization Act of 2019 created Subchapter V, designed to allow small companies to reorganize without Chapter 11’s usual expenses, delays and complex procedures. Subchapter V applies to both individual and corporate debtors, but not always equally to both. Federal courts are in conflict over the ability of corporations to discharge certain types […]
Advantages of an Individual Debtor Choosing Chapter 11 Instead Chapter 13
A common misconception is that only businesses can use Chapter 11 for debt reorganization. But in fact, individuals seeking bankruptcy protection can use Chapter 11 to get back on their feet financially by completing a repayment plan over an extended period of time. Chapter 11 can sometimes be a more advantageous alternative than Chapter 13, […]
Common Adversary Proceedings in Bankruptcy Court
An adversary proceeding in bankruptcy is essentially a case within a case. It is a formal legal action initiated by one party against another party in the bankruptcy to settle a related dispute. Either party files a complaint detailing the reasons for seeking relief and the other party has the opportunity to respond. The proceeding […]
When Is a “Chapter 22” an Effective Remedy for a Company?
The informal term “Chapter 22” is used to describe a second Chapter 11 filing after a company falls short of emerging successfully from the first one. This can happen for various reasons, often related to unfulfillment of assumptions or expectations underlying the original Chapter 11 plan. Unlike other types of bankruptcy, there is usually no […]
Does a Business Bankruptcy Affect Your Personal Assets?
If your business falls into distress and you’re contemplating bankruptcy, you are naturally concerned about protecting your home and other personal assets from business creditors. Your ability to do so, whether your business is seeking Chapter 7 or Chapter 11 relief, depends in large measure upon the legal structure of the enterprise. If you own […]
What to Know About Attending a Virtual Creditors’ Meetings via Zoom
Creditors’ meetings —also known as Section 341 meetings — are a necessary stage of every Chapter 7 bankruptcy case. Their purpose is to make sure the information in the debtor’s petition is accurate and to find out if there are any facts or circumstances that might justify denial of bankruptcy relief. These meetings, which debtors […]
Prefiling Mistakes That Can Derail Your Bankruptcy Case
Bankruptcy, whether it be in the form of a Chapter 7 liquidation or a Chapter 13 debt reorganization, can provide a fresh start for individuals struggling with overwhelming debt. However, there are several errors debtors commonly make prior to filing their petition that can jeopardize the success of their case as well as trigger other […]
Bankruptcy Options for Small Businesses in Financial Distress
Navigating financial challenges is a common part of running a small business. But when the burden of debt becomes too heavy to bear, owners have legal alternatives to shutting down the enterprise. The primary bankruptcy options that allow small businesses to stay in operation are Chapter 11 and Chapter 13. Which option is best suited […]
What Is a Willful and Malicious Injury That Can Exclude a Debt from Bankruptcy Discharge?
Bankruptcy is a legal remedy that allows individuals and businesses to discharge most of their debts. However, there are some types of debts that are not dischargeable in bankruptcy, including those that are based on willful and malicious injury by the debtor. This exclusion of these debts in Chapter 7, Chapter 11 and Chapter 13 […]
Mortgage Relief Companies Can Put Debtors in Even Worse Financial Shape
If you are facing a default on your mortgage that could lead to foreclosure of your home, beware of the multitude of companies offering mortgage loan relief. These entities are often ineffective in helping resolve critical debt situations, and they can sometimes make things worse, whether through inefficiency, mismanagement or the perpetration of scams. Mortgage […]
