Dec 30
Yesterday I wrote Bankruptcy Season Is Approaching – Part One and discussed bankruptcy season for consumers. Today, I address the effect of the new year on businesses.
Bankruptcy Season for Businesses
Retailers also keep bankruptcy attorneys busy after the holidays. The holiday season should be a joyous time for retailers. However, when the economy is suffering, which is certainly the case now, some of those retailers who held out for the Christmas rush unfortunately will not make it without bankruptcy assistance.
Sometimes the wait-till-January tactic works if a spike in holiday sales provides sufficient cash to tend the coffers.
Harvard bankruptcy professor Lynn LoPucki studied the January bankruptcy phenomenon. From 1980
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Tags: Bankruptcy Season, Part
Dec 29
My question of the week comes from a client who wanted to know if private student loans he owed on were discharged in a bankruptcy case he filed in 2002.
For bankruptcy cases filed PRIOR TO October 17, 2005, if the PROGRAM under which a student loan was issued, insured, administered was a FOR-profit, PRIVATE (non-government) entity, the loan/debt may have been discharged. However, if the program itself, such as LAL, GSL, etc. received nonprofit funding by participation of nonprofit entities, the loan is not dischargeable in bankruptcy.
To see a ninth circuit case which examines the private vs. government distinction on student loans in bankruptcy, see In re Pilcher
For bankruptcy cases filed after October 17, 2005, the only way a student loan is dischargeable is if the debtor can prove “undue hardship” as that term is interpreted by the courts in whatever district the case is filed in. It
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Tags: Bankruptcy, Private Student, Private Student Loans, Student Loans
Dec 29
The decision to file bankruptcy is not an easy decision. Although bankruptcy provides you the relief from all your debts, but it is always advisable to use it when you don’t have any other option to work upon. The bankruptcy can really affect the financial future. There are many myths about bankruptcy floating around, that may deter someone from filing a bankruptcy that may be more beneficial than harmful.
Although a bankruptcy is hard-hitting and stays on your credit for a period of 10 years, it does not ruin your credit. In fact, many people obtain higher credit scores after a bankruptcy due to successful changes in spending habits. A good first step to reestablishing credit after a bankruptcy is to actually watch your credit. There are dozens of companies that advertise that if you sign up for their program you can check your credit as often as you chose. This is great, but generally unnecessary as anyone can get a copy from each of the three credit bureaus once in a year.
Also you should make sure that you receive a new credit card reports at least from two, if not all three credit bureaus, every month. M
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Tags: Bankruptcy
Dec 29
If an aggressive creditor has threatened to attach or “garnish” your assets or income, your Chapter 7 case should be filed immediately.
Why? To take advantage of the protection from creditors that accompanies the filing of a Chapter 7 case. This advice also applies if a foreclosure action has been filed against your home – it may be necessary to file your case immediately in order to protect your interest in the property.
Cause your creditors to ‘STAY’ back
The filing of a Chapter 7 case automatically suspends virtually all collection and other legal proceedings pending against you. A few days after a Chapter 7 case is filed, the court will mail a notice to all creditors ordering them to refrain from any further action against you. This court-ordered suspension of creditor activity against the person filing is called an automatic stay.
If necessary, notice of the automatic stay may be served on a creditor earlier by the person or the person’s attorney. Any credi
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Tags: Chapter, Chapter Bankruptcy
Dec 27
The college football world has been buzzing over the back-and-forth job status of University fo Florida head football coach Urban Meyer.
Last week, Meyer announced that he was stepping down due to health reasons. He has since changed his mind, and his future with the program is unclear as rumors about his health continue to swirl.
There has been speculation that the high-stress, high-profile demands of coaching and recruiting have caused Meyer to experience heart problems, dehydration, headaches and other stress-related symptoms, some of which could be become life-threatening.
While Meyer weighs returning to coach full-time with quitting or taking a lesser role, this is a good time to weight the stress costs of your current job.
Stress and Your Medical Bills
Many people see stress as just another part of their job. Even the best paying, most glamorous jobs come with their own stresses.
But these stresses can quickly take on a life of their own.
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Tags: Coach, Coach Quitting