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...
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Chapter 11 bankruptcy may involve sale of debtor’s assets
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...
Trustee seeks to reopen bankruptcy case to sell hidden assets
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...
What happens in a Chapter 7 bankruptcy?
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...
What is a ‘plan of reorganization’ in a Chapter 11 bankruptcy?
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...
Without buyer, HHGregg faces Chapter 7 liquidation
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...
What is a bankruptcy preference in Kentucky?
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...
Understanding the role of the bankruptcy trustee
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. When a bankruptcy...
3 things not to do before filing for bankruptcy
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...
