Lien priming is a term of art in bankruptcy used to refer to a concept in debtor-in-possession financing (“DIP financing”). DIP financing is a very large topic in itself, but simply put, when a business debtor is trying to reorganize in bankruptcy, it often needs cash. A large industry exists to fund these cash requirements, [...]
Nicholas Ortiz, Boston Bankruptcy Attorney
I’ve been hearing from more and more people who have purchased small businesses on an installment basis from a previous owner and are now struggling to make the payments because of the downturn in the economy. What should you know and do if you are in this situation? First, it makes sense to try to [...]
The Fair Credit Reporting Act requires credit reports to be accurate. What is accurate reporting during a bankruptcy case? In general, creditors have no duty to report anything at all to credit reporting agencies. Consequently, many will simply stop reporting any debt information once informed of a bankruptcy case. However, sometimes a credit report will [...]
Most people would like to avoid bankruptcy if they can. Sometimes alternatives are worth trying, but it pays to know the risks. A good bankruptcy lawyer never pushes someone into bankruptcy but, instead, lays out the options and lets the individual decide. Here’s a bit of information about commonly-tried bankruptcy alternatives. 1. Debt consolidation: If [...]
This is a question we hear a lot: who will find out if I file bankruptcy? It’s a good question with a pretty simple answer, but like a lot of things about bankruptcy, people tend to worry about it. First of all, bankruptcy is a court proceeding. The fact that you filed bankruptcy will be [...]
People sometimes spend down the last of their cash and then decide they need bankruptcy. This seems like common sense: you go broke and then you go bankrupt. But this is not how it works. There’s a saying that goes, “bankruptcy is not for paupers.” This means that bankruptcy costs money and is usually not [...]
