One of the most unpleasant aspects of a difficult financial situation faced by Kentuckians is dealing with the collection efforts of creditors. While many debt collectors are honest and law-abiding, some resort to tactics that can only be described as harassment. A far-reaching federal statute intended to stop creditor harassment may offer some protection before the last resort of bankruptcy.
Takata Corp. manufactures automotive airbags, and its products can be found in thousands of cars in Kentucky. Unfortunately, Takata's products suffer from a serious design defect, and the liability claims and fraudulent cover up have now forced the Japanese company to seek the protection of the bankruptcy court. This case provides a case study of how a business bankruptcy can eliminate or sharply reduce the amount of money available to pay liability claims.
For many Kentuckians, choosing between filing bankruptcy under Chapter 7 and Chapter 13 can be difficult. This post will examine the choice from a different perspective: the outcome of a Chapter 13 proceeding. In other words, what happens to a person's assets and debts when the Chapter 13 proceeding finally comes to an end with the entry of the order confirming the repayment plan?
The increasing popularity of on-line selling by firms such as Amazon and others is having a severe adverse effect on traditional retailers in Kentucky and elsewhere. This effect has been recently demonstrated by the number of retailers filing for Chapter 11 protection from their creditors.
Many Kentuckians who seek discharge of their debts under Chapter 7 of the United States Bankruptcy Code are surprised to learn that some debts cannot be discharged. The types of debts that cannot be discharged in a personal bankruptcy are enumerated in the Bankruptcy Code, and this post will provide a summary of these kinds of obligations.
The United States Bankruptcy Code contains many terms that are unique and not always easy to understand. One of the key terms in any business bankruptcy is "debtor in possession." When a Kentucky business makes the decision to file a petition in bankruptcy, it must choose from several different types of proceedings, including complete liquidation, reorganization of debts and continued operations and submitting to the oversight of a court-appointed trustee. A business that decides to keep operating while reorganizing its finances often becomes a "debtor in possession."
Many of the Kentucky businesses that file bankruptcy petitions under Chapter 11 of the Bankruptcy Code are colloquially known as "small businesses." Some of these small businesses are so small that they are governed by a separate provision of the Bankruptcy Code known as the "small business bankruptcy."
Most Kentucky businesses contemplating filing a petition for a Chapter 11 bankruptcy understand that control of the business will be subjected to the control of the court. But few understand exactly how this happens. This blog has previously commented on the role of the bankruptcy trustee in a Chapter 11 proceeding. This post will examine the role of the creditors' committee.
If you decided to file Chapter 13 bankruptcy, you must manage your debts by submitting a repayment plan for court approval. You will need to provide monthly or bi-weekly payments in fixed amounts to a trustee, who will distribute the funds to creditors in accordance with the plan.
Many people in Kentucky have used the services of 21st Century Oncology, a large cancer treatment network concentrated in southeastern states. Following years of declining revenue and the settlement of several lawsuits, the company recently filed a petition for bankruptcy under Chapter 11.