Kentuckians who file petitions under Chapter 7 of the United States Bankruptcy Code usually expect to have all of their debts discharged by the bankruptcy court at the close of the proceedings. However, persons who look to Chapter 7 to eliminate their debt do not always understand that they may be required to meet a threshold that requires them to submit their monthly income and expenses to the court for review before they are eligible for a Chapter 7 discharge. This test is commonly called the "means test."
As many Kentucky business owners know, a Chapter 11 bankruptcy, in which the debtor seeks to reorganize its debt structure while it continues to operate, can take many forms, depending upon the business of the debtor and the extent and nature of its financial obligations. A recently announced bankruptcy filing by a medical device manufacturer shows how even a Chapter 11 bankruptcy may result in the sale of most, if not all, of the debtor's property.
Many Kentuckians who are contemplating bankruptcy under either Chapter 11 or Chapter 13 may believe that when the court enters an order approving the plan of reorganization, the proceeding is over. This belief, however comforting it may be, is not correct. A recent motion by the trustee in a bankruptcy case in Kansas shows how a bankruptcy case can be reopened if fraud is suspected.
Kentuckians who are contemplating filing a petition for bankruptcy have two choices: a Chapter 7 dissolution and a Chapter 13 reorganization. The consequences of this choice depend upon a number of factors in each person's financial situation. This post will summarize the potential outcomes of a Chapter 7 filing.
Many Kentucky business owners who are facing mounting business debts are aware that the federal Bankruptcy Act provides them a haven in which their debt can be reorganized, thereby giving the business a fresh start. This post will provide an overview of one of the most important parts of a Chapter 11 bankruptcy: the plan of reorganization.
Changing retail habits of Kentuckians and residents of nearby states appear to have claimed another victim: retail chain HHGregg. Gregg has been hoping to reorganize its debts under Chapter 11 of the Bankruptcy Code, but it is now facing the possibility that it will not find a buyer and that it will be forced to liquidate its business.
Small businessmen in Kentucky who are pondering either a Chapter 7 liquidation bankruptcy or a Chapter 11 reorganization may seek to protect family members, friends or close business associates from the effects of a bankruptcy discharge by paying amounts owed to such persons or entities before filing the bankruptcy petition. Such payments may, if they meet six criteria set forth in the bankruptcy code, be voided by the bankruptcy court, and they may impose additional costs on the estate, thereby reducing the amount available to pay creditors. These payments, known as "preferences," can pose a hazard in any business bankruptcy.
One of the most misunderstood roles in bankruptcy proceedings is that of the bankruptcy trustee. This post will provide an overview of the functions of the bankruptcy trustee in personal bankruptcies under both Chapter 7 and Chapter 13 proceedings.
Making the decision to file for bankruptcy is not easy or pleasant, so you may be tempted to try to get it over with as quickly as possible. But before you begin, be aware of what you should not do before you file, helping ensure the process goes more smoothly and has fewer negative consequences on your financial life