Bankruptcy Chapters

There a few common myths about bankruptcy that are important to note if you are deciding whether or not to file for it.

First, it is commonly thought it is better for you to transfer assets and property to family and friends so that you can get it back after emerging from bankruptcy. This includes money, cars, and stocks.

Another myth is that you can settle your financial issues by cashing out your 401 (K) plan or IRA.  The reason for this is because those are two of the items that are protected from bankruptcy. Therefore, if you emerge with nothing else, you will still have these.

Also, filing for bankruptcy does not mean that child support and alimony obligations will disappear because you will still have to pay these, regardless if you file for Chapter 7 or 13.

Tags: Bankruptcy, Common Myths

The chief distinguishing characteristic of a Chapter 13 bankruptcy is its repayment plan. Unlike a Chapter 7 bankruptcy case, the Chapter 13 debtor submits a proposal to the court to repay creditors over three to five years. There is no repayment plan in a Chapter 7 bankruptcy case. Because of the repayment plan, Chapter 13 cases are generally more complicated than Chapter 7 bankruptcies, but the debtor’s relief can be more powerful. With this in mind, here are the top five questions clients ask when considering Chapter 13 bankruptcy:

Will I lose any property? No. The Chapter 13 trustee will not take property from you. The law allows you to keep and “exempt” a certain amount of property during your bankruptcy case. If you have property in excess of the legal exemption amounts, you are required to pay unsecured creditors an amount equal to the non-exempt equity during your repayment period.

How can I keep my car if I owe more than its worth? If your vehicle loan was made more than 2-1/2 years before your bankruptcy is filed, you can “cram down” your loan to the fair market value of the vehicle. For insta

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Tags: 13 Bankruptcy, Bankruptcy, Chapter 13, Chapter 13 Bankruptcy

Fruit basket and gifts retailer Harry & David Holdings Inc. has filed plans to exit Chapter 11 bankruptcy protection in late summer.

According to a reorganization plan filed Monday, the Medford, Oregon-based company will be able to convert all of its $200 million in outstanding notes into equity and raise $55 million in equity financing after it emerges from Chapter 11. The equity financing will be used to pay down debt.

The company entered Chapter 11 bankruptcy protection in March after struggling to remain afloat during the recession. Harold & David said the reorganization plan has the support of its official committee of unsecured creditors and about 81 percent of the company’s noteholders.

Tags: 11 Bankruptcy, Bankruptcy, Chapter 11, Chapter 11 Bankruptcy

Adversary proceedings are common in Las Vegas bankruptcy. In an adversary proceeding one party sues one or more other parties over an issue related to the bankruptcy in a hearing adjudicated by the bankruptcy court. Parties can include debtors, creditors, and the U.S. Trustee. One of the most common issues brought before the bankruptcy court in an adversary proceeding is a creditor disputing the dischargeability of credit card debt. According to section 523(2)(a) of the bankruptcy code a creditor can dispute the dischargeability of credit card debt if it was obtained via:

(1)  False pretenses (2)  False representation (3)  Fraud (4)  Use of a materially false financial statement

The bankruptcy code is understandably hostile to those who are trying to discharge debts they obtained by lying to the creditor. Moreover the changes to the code in 2005 made it harder for debtors to prove that they arent trying to discharge credit card debt after buying luxury goods or taking cash advances from their credit cards. Thu

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Tags: Bankruptcy, Las Vegas

According to the National Bankruptcy Research Center, more than 1.3 million bankruptcies were filed in 2011, or about one for every 175 American adults. We all know the economy is bad, jobs are scarce, and the housing market is still poor. But what may surprise you is what causes an individual to file for bankruptcy protection.

#5: Unexpected Expenses A catastrophic event can push a person to file bankruptcy. You can lose everything to a fire, flood, or a tornado, and an “act of god” can break your finances. Insurance does not always cover everything needed to make a person whole again, and sometimes there are associated expenses not covered by insurance. Likewise, theft can cause you similar harm, including identity theft, fraud, or other stealing.

#4: Divorce A divorce can flat wreck your finances. Legal fees, domestic support obligations, and separate household expenses drain both incomes. Even if you think you are the “big winner” in a divorce, ruining your spouse can cause you unexpected financial grief. Many people are not aware that a family law judge cannot relieve you of a joint debt liability. So even

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Tags: Bankruptcy