Blog
Recent Blog Posts
Adversary Proceedings to Deem Debts Nondischargeable
A bankruptcy ends with a cancellation of all debts except for those determined to be non-dischargeable. Sometimes a separate trial — known as an adversary proceeding — is required to decide a creditor’s claim that a debt should not be discharged. A creditor may raise objections to discharging certain debts, such as these: Debts obtained […]
Obtaining Credit in a Chapter 11 Bankruptcy
If your company is unable to turn a profit and has run out of lenders willing to finance it further, Chapter 11 bankruptcy could be the best way to allow the company to stay in business. A Chapter 11 also can open up other sources of credit for you. This might seem counterintuitive, because your […]
What Determines the Length of Your Chapter 13 Plan?
A Chapter 13 bankruptcy, otherwise known as a wage earner’s plan, allows you to discharge your debts by repaying a portion of them over time and on more favorable terms. When you have completed the plan, the court will eliminate most or all of your remaining unsecured debts. Chapter 13 repayment plans last either three […]
Smart Ways to Eliminate Business Debt
If you run a business, you likely obtain loans to finance purchases or investments or to obtain working capital for operational expenses. However, revenue shortfalls, increased expenses and other unforeseen setbacks may cause your business to become overburdened with debt, putting it in financial jeopardy. Filing a Chapter 11 bankruptcy to reorganize your debt may […]
How Are Your Debts Reorganized in Chapter 11?
Chapter 11 bankruptcy offers many benefits to troubled companies, including relief from unsustainable levels of debt, a way out of burdensome contracts and some much-needed breathing room to develop a plan for the future. Once the creditors agree to a reorganization plan, the company gets a fresh start and a new balance sheet that better […]
Using Chapter 7 to Wipe Out Personal Liability for Business Debt
Many small businesses struggle to stay afloat and eventually reach the point where debt becomes unmanageable. If you are an owner or part owner of a business in that situation, you may be wondering whether you are liable for your company’s debts and whether filing a Chapter 7 bankruptcy can protect you and your personal […]
Your Options if You Can’t Make Your Chapter 13 Payments
The core of a Chapter 13 bankruptcy is the debtor’s ability to pay creditors back a portion of what is owed them. The debtor promises to make monthly payments for a specified period of time, which are determined based on the debtor’s available income sources. If all goes well, the rest of the outstanding debt […]
What to Expect When You File Chapter 11 Bankruptcy
Companies in financial distress may be able to use Chapter 11 bankruptcy to restructure and reduce debts, ultimately reemerging as healthier businesses. At one time, only large corporations could afford the costs of Chapter 11, but thanks to change in the Bankruptcy Code, many small businesses are able to take advantage of a streamlined version […]
When Can a Court Convert Your Chapter 11 Reorganization to a Chapter 7?
Businesses under financial duress can choose from two alternative courses in bankruptcy. If they believe they can reorganize and return to profitability, they can opt for Chapter 11. If not, then the path is Chapter 7, by which the business’s assets are liquidated and distributed to creditors and the company ceases to exist. A business […]
What Steps to Take – and Not Take – Before Filing for Bankruptcy
Serious financial stress can cause people to look for immediate relief. As tempting as it can be to start moving money around and trying to consolidate your debt, you may be better off filing for bankruptcy protection. To get the most out of this remedy, whether through Chapter 7 or Chapter 13, you and your […]
