discharge Tag

22 Sep Should Your Company File Chapter 7 Bankruptcy?

IMG_3419Most of the time, there is no reason to file a Chapter 7 bankruptcy for a corporation or limited liability company. (We'll call them both "companies" in this post). However, there are some instances where filing Chapter 7 for the company makes good sense. Normally, bankruptcy is about one thing: the bankruptcy discharge order. The order states, with some exceptions (such as some taxes, student loans, domestic support obligations), that the debtor's debts are terminated. The debtor then has the benefit of a "fresh start" to rebuild his life. But what if the debtor is the owner of a corporation or limited liability company? If the debtor files bankruptcy, should the company file bankruptcy as well? Usually not. The company does not get a discharge in Chapter 7 because it's not an individual. When the Bankruptcy Code says "individual," it means a human being. In most instances, the only thing the company gets by filing a Chapter 7 bankruptcy is a decent burial.
Read More

01 Apr When Will I Get My Car Title After I File Bankruptcy?

"You should get your car title after you receive a discharge at the end of your chapter 13 case,." says Illinois Bankruptcy Attorney Andy Miofsky. Most bankruptcy courts require the chapter 13 trustee to serve as the paying agent for car loans. There are a few exceptions, but generally you pay a monthly amount to the trustee and the trustee uses that money to pay your car claim. Rarely does a chapter 13 Plan provide that you pay the car loan according to the original contract terms. Under such a plan, you should receive your title from the lender as soon as the trustee pays off the loan. Typical chapter 13 plans involve paying a lessor amount on the loan balance or a lower interest rate or a lower monthly payment spread over the course of the bankruptcy case. In these cases, the car lender will receive less money through the bankruptcy than was owed on the original contract.
Read More

28 Mar Waiver Of Credit Counseling And Debtor Education Ends For Eastern District Of Louisiana

R. Michael Bolen, the U.S. Trustee for Region 5, has announced that debtors filing for bankruptcy in the Eastern District of Louisiana must begin to take Credit Counseling and Debtor Education beginning on September 16, 2009. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005...

Read More

16 Aug Bankruptcy Discharge of Deficiency Judgments

The Bankruptcy Courts in Connecticut have determined that a lien arising from a deficiency judgment from a mortgage foreclosure may not be avoidable in a bankruptcy case. This means that if the mortgage bank has recorded the deficiency judgment against other real estate that you own, you may not use the bankruptcy process to avoid it. Remember that a deficiency judgment in a foreclosure case is the difference between the balance left on the loan when the real estate is worth less than what is owed. See my prior post on this subject.
Read More