Category Archives: Bankruptcy
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 […]
Refinancing Your Mortgage During a Chapter 13 Bankruptcy
It is possible to refinance a home loan while in Chapter 13 bankruptcy, though there are hurdles that make the process more difficult. The eligibility requirements are fairly strict. The debtor must get pre-approval from the bankruptcy court. Refinancing under Chapter 13 also takes longer and requires additional paperwork. However, the result can be worth […]
Can a Chapter 11 Plan Release a Third Party from Liability to Creditors?
In a Chapter 11 bankruptcy, the debtor (usually a business organization) reorganizes its existing debts and repays obligations over a period of years in accordance with a court approved plan. Longstanding bankruptcy law permits the courts to discharge certain obligations as to the debtor. Some Chapter 11 debtors propose reorganization plans that release third parties […]
How Courts Evaluate Whether to Convert a Chapter 7 to a Chapter 11
An individual seeking Chapter 7 bankruptcy protection must demonstrate a lack of disposable income to repay debts, but that isn’t the end of proving eligibility. The bankruptcy code allows a court to convert a Chapter 7 to a Chapter 11 under certain circumstances. This is typically done at the request of creditors who show they […]
Getting the Most Out of California’s Homestead Exemption in Bankruptcy
Homeowners who fall on hard financial times often rule out bankruptcy because they fear it means they might lose their home. But in reality, many owners are able to use California’s homestead exemption to file for Chapter 7, receive a discharge and keep their home. For 2022, the exemption is $300,000 or the median sale […]
