Last month, on October 17th, the bankruptcy law turned 8. In 2005, the government passed the Bankruptcy Abuse and Consumer Protection Act: BAPCPA. It became the bankruptcy law on October 17, 2005. So, on October 17, 2013 that law was eight (8) years old. Why do we care? The new law carefully defines how long […]
Douglas Jacobs, Esq.
There are two types of bankruptcy that can be used for a business: liquidations and reorganizations. A liquidation bankruptcy is one which eliminates debt; often at the cost of liquidating (selling or transferring) your assets to creditors. A reorganization bankruptcy can stretch out payments to creditors, reduce or eliminate some debts, and “reorganize” or rearrange your […]
You’ve heard us recite here many reasons to file bankruptcy. Here are five reasons NOT to file bankruptcy. 1. Filing for bankruptcy weakens the credit card industry. Right now, about the only US industry that is consistently showing an annual profit is the credit card companies. Just look at the amount you pay each year […]
The chapter 13 process in bankruptcy is surprisingly similar to a marriage. First a debtor seeks out a bankruptcy attorney. Like going to a bar looking for someone to spend the evening with, a debtor will ask around about who is a good attorney, who he can communicate with easily, and who has the time […]
Bankruptcy generally discharges or re-organizes a debtor’s obligations. This often includes any mortgage that the debtor owes. In a Chapter 7 bankruptcy, the debts can go away but the liens often remain. The debtor either pays the mortgage or loses the property. In a chapter 13, the same sort of thing happens: the debtor either […]
Most people I speak with think that in order to file bankruptcy you have to have more liabilities than assets. In other words, you have to be insolvent. That’s simply not true and there are many times when filing a bankruptcy – particularly a Chapter 13 – will get you out of an economic mess […]