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Individual Chapter 11 fact: You can always cram down your car »

In Chapter 13, if you want to retain your vehicle, you cannot alter the principle amount owed on the vehicle if you bought it within 910 days of the filing of the bankruptcy petition.   This is notoriously known as the “hanging paragraph” of Bankruptcy Code § 1325(a).
However, as Jacksonville Chapter 11 attorney Brett Mearkle explains, [...]

Are Attorney Fees Still Recoverable in the 9th for Stay Violations? »

On October 1, 2009, the Ninth Circuit Court of Appeals issued its decision in Sternberg v. Johnston, No. 07-16870 wherein it affirmed a stay violation under 11 USC 362, yet held that attorney fees were only recoverable related to enforcing the automatic stay and remedying the stay violation, and not in the litigation of damages.  In [...]

An individual Chapter 11 bankruptcy may be better for you than Chapter 13 »

In my 17 years of practicing bankruptcy law, I have never been as excited by anything as the development of the individual Chapter 11 case.
Traditionally, Chapter 13 has been used for personal reorganizations while Chapter 11 has been reserved for more complex corporate reorganizations.  However, a small handful of sophisticated bankruptcy lawyers, like Brett Mearkle [...]

Is it Safe to Fly on an Airline that is in Bankruptcy? »

Pay attention to these 5 tips to safely fly on an airline that is in bankruptcy. During the past 8 years these airlines filed bankruptcy: Aloha Airlines, America West, ATA Airlines, Braniff International, Continental Airlines, Delta Air Lines, Eastern Airlines, Frontier, Hawaiian Airlines, Northwest Airlines, TWA, United Airlines, and US Air. You can [...]

Are Bankruptcy Lawyers “Debt Relief Agencies”? Soon, the Supreme Court Will Let Us Know »

When Congress passed bankruptcy “reform” in 2005, it included provisions requiring consumer bankruptcy lawyers to call themselves “Debt Relief Agencies,” restricting the information we could provide our clients, and adding all sorts of disclosures and disclaimers that did little more than generate lots and lots of paper.
These provisions were challenged as unconstitutional by a Minnesota [...]

How Fast Can I File for Bankruptcy? »

“My wages are being garnished!”
“I have a foreclosure scheduled for tomorrow!”
“They’re going to come and repossess my car tonight!”
As a bankruptcy attorney, I have heard all these, and more, as reasons why a potential client’s case needs to be filed TODAY. While bankruptcy attorneys may be able to file a bankruptcy case on an emergency [...]

Eviction After Foreclosure—Is There An Automatic Stay? »

Many clients face eviction from their homes after foreclosure. At first glance, even a bankruptcy filing might not help, since § 362(b)(22) states that there is no automatic stay of eviction where a pre-filing judgment for possession has been entered. Such clients are safe, however. The plain language of this section does not apply to [...]

Reader’s Digest Files for Chapter 11 Bankruptcy Reorganization »

Reader’s Digest, founded in 1922 and America’s best selling consumer magazine, said Monday that it would be filing for Chapter 11 reorganization.
From a high of 18 million copies a month in the 1970’s, subscriptions had declined to less than 9 million. Reader’s Digest, which will continue to publish, plans to use Chapter 11 to cut [...]

Stephen Baldwin – Another Celebrity Bankruptcy »

Stephen Baldwin file Chapter 11 Bankruptcy yesterday.  He is just another celebrity who has been brought back to reality.  Although I have yet to see the Petition and Schedules that were filed in the Bankruptcy Court, news reports state that the actor is millions of dollars in debt.  His website does not make a mention [...]

Who Needs Small Business Chapter 11? (Part Two) »

Chapter 11 small business part one discussed some of the reasons businesses lose money, and the start of the analysis business owners need to do before deciding if a small business Chapter 11 makes sense.
So, you figure out what it cost to run the business every month, then, you know how much you need to [...]