Tag Archives: bankruptcy
Obtaining Debtor-in-Possession (DIP) Financing During Chapter 11
For companies bordering on financial collapse, Chapter 11 bankruptcy can offer relief through protection from creditors and a debt restructuring plan that provides a way to return to solvency. But the reorganization process requires access to capital. This is why debtor-in-possession (DIP) financing is critical. It allows the debtor, who remains in possession of the […]
Facing Adversary Proceedings That Challenge Discharge of Debts
The goal of a bankruptcy is to obtain a fresh financial start by having some or all of your debts discharged — namely, wiped out. However, there may be reasons that a creditor or the bankruptcy trustee objects to the discharge of certain debts or to all of them. This sometimes results in an adversary […]
How Nonconsensual Third-Party Releases Can Be Useful in Chapter 11 Bankruptcy Cases
Nonconsensual third-party releases are provisions in Chapter 11 bankruptcy plans that release non-debtor parties from liability to creditors without the consent of all potential claim holders. These releases can be a useful tool for debtors in a number of situations. The common purpose of nonconsensual third-party releases is to protect directors and officers from liability […]
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. […]
What Can Delay Completion of a Chapter 11 Bankruptcy?
Chapter 11 bankruptcy allows a financially struggling business to get back on its feet by reorganizing its debts. But there is no definitive timeline for the Chapter 11 process. Depending on numerous factors, winding up a reorganization plan can take anywhere from six months to five years or even longer. There are multiple procedural stages […]
Costly Mistakes to Avoid Prior to Filing for Bankruptcy
When you’re in severe financial distress and considering bankruptcy, don’t let desperation overrule good judgment. Certain actions or omissions taken in the months leading up to filing for bankruptcy can hurt your chances for a successful outcome. Approaching things with a level head will help prevent costly mistakes that can come back to haunt you. […]
Repairing Your Credit After Declaring Bankruptcy
Many people try to avoid bankruptcy because they fear it will ruin their credit rating. While it is true that bankruptcy takes an immediate toll, it does not last forever. Your credit report will show your bankruptcy for seven or 10 years but the impact of the bankruptcy lessens over time. And with your debt […]
What is the Trustee’s Role in a Chapter 7 Bankruptcy?
When a person or business files for Chapter 7 bankruptcy, the petition and related paperwork provide the court with information about the debtor’s assets and liabilities, income and expenses and general financial condition. The court then assigns a trustee, whose role is to review the bankruptcy petition and other documentation and to supervise and administer […]
Using Bankruptcy to Avoid Home Foreclosure
When default on mortgage payments leads the lender to threaten foreclosure, you need to take prompt action to protect your home. Bankruptcy is an effective way to block foreclosure while allowing you to devise plans for getting back to financial solvency. Filing for bankruptcy protection under Chapter 7 or Chapter 13 causes an automatic stay […]
What Can Cause Your Chapter 7 Petition to be Denied?
Chapter 7 bankruptcy offers consumers a chance to be relieved of crushing debt and to get a fresh financial start. However, the law is not intended as a cover for fraud, deception or other conduct abusive of the bankruptcy system. Debtors who seek the law’s protection are held to high standards of good faith and […]