Blog
Recent Blog Posts
Overcoming Objections to Plan Confirmation in Chapter 11
In Chapter 11, a financially struggling company uses bankruptcy protection to stay in business while restructuring certain debts and reorganizing business operations in accordance with a bankruptcy plan. One of the major challenges of a Chapter 11 bankruptcy is getting the plan approved by the bankruptcy court. A Chapter 11 plan is a highly detailed […]
Lien Stripping of Second Mortgages in Chapter 13
One of the main reasons consumers file Chapter 13 bankruptcy is to save their homes from foreclosure. With Chapter 13, also known as a wage earner’s plan, the debtor may be able to keep the home by paying off mortgage arrearages over a period of years. However, a homeowner may have more than one loan […]
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 […]
The Perils of Not Responding to a Collection Lawsuit
When you are served with a summons and complaint in a collection matter, ignoring these papers will likely have costly consequences. You might not only lose the opportunity to defend yourself, but also put yourself at risk of collection measures that can take your assets and income from you, or even force you into bankruptcy. […]
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 […]
Using Cash Collateral to Pay Expenses During a Chapter 11 Case
Most Chapter 11 bankruptcies involve a number of “first day” motions, which are applications made to the court at the very start of the case to give some immediate relief to the debtor. These motions might seek approval of financing for the debtor, preference of certain creditors over others and other changes in how the […]
