The 2005 amendments to the Bankruptcy Code modified the landscape for a key defense to bankruptcy preference actions. Preference actions are when a trustee or debtor in possession sue a creditor for the return of payments made in the 90 days before a bankruptcy. The concept is that creditors that receive more than similarly situated [...]
Nicholas Ortiz, Boston Bankruptcy Attorney
In bankruptcy there is a hierarchy in the right to get paid. Secured creditors come before unsecured creditors who, in turn, come before stockholders. Senior creditors get paid in full before their juniors get anything. In a Chapter 11 bankruptcy scenario, there is usually a tier of creditors that is only partially “in the money.” [...]
Credit bidding is a right that secured creditors have in bankruptcy sales allowing them to control the sale of their collateral. When collateral that secures a lien is proposed to be sold at a bankruptcy auction, a secured creditor is allowed to bid the amount of its debt as a credit bid, i.e. not a [...]
Section 1322 of the Bankruptcy Code allows a debtor to assume an unexpired lease, such as for an apartment or car, in their Chapter 13 case. This right is subject to the provisions of Section 365 of the Code, which provide: If there has been a default in an executory contract or unexpired lease of [...]
When it comes to payment plans for Chapter 7 cases, all fees and costs must be paid before the case is filed. At first glance, this may disappoint you, but most people it’s not a problem. The payment plan period usually overlaps with the pre-filing process. In other words, you and your lawyer need time [...]
Chapter 13 bankruptcy is usually a good fix for someone behind on their mortgage if a loan modification outside of bankruptcy is not possible and foreclosure is looming. However, there are times when a Chapter 13 will not work. I will mention three of these and then say a few additional words about the last. [...]
