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4 years 8 months ago

Bankruptcy is the legal process pertaining to people who cannot afford to pay their remaining debts in order to get a chance to a fresh start. The Bankruptcy laws offer unburdens overwhelmed debtors who are unable to pay their outstanding balances and, at the same time, help the creditors get paid from whatever kind of assets the debtor has no need for. Bankruptcies are often used as a last resort but it is not a sure way to solve all your financial problems. It will cover only certain debts that are eliminated when you file for bankruptcy.
What is a Discharge?
A discharge enables the debtor to be free of debt and prevents the creditors from taking collecting actions against the debtor. In simpler terms, the debts are wiped out and the debtor no longer needs to pay those that are discharged.
However, while most debts can be discharged, not all kinds of debts are removed when you declare bankruptcy. 
What are the Debts that can be Discharged?
 Dischargeable DebtsIn a bankruptcy, “Common Categories of Dischargeable Debts,” states that the debt must meet the qualifications and timing requirements. It works by filing for bankruptcy in the bankruptcy court before and after the case described as follows:

  • Pre-filing debt – is a pre-petition debt obligation that you have before you file for bankruptcy. When the case ends, the court will wipe out or discharge the debts included and qualified in the pre-petition debt such as credit card balances, medical debt, and personal loans.
  • Post-filing debt – are the debts and bills you need to present to the court that you incurred after submitting the pre-petition debt. In all kinds of bankruptcy cases. You are still obligated to pay for the balances the you incur even if the case isn’t over.

Among all the debts obtained, only those debts that you have before filing bankruptcy will be discharged. As for the subsequent debts, you still need to repay those. Take note that if you either fail to follow the bankruptcy process or your debt doesn’t qualify for a discharge, then these can be barriers for you to have your debts wiped out.
Common Categories of Dischargeable Debt
Under the Bankruptcy Code, there are 19 categories of debt that are not capable of being discharged. Everything else not included can be wiped out. However, you need to be mindful that misconduct or fraud in connection to the debts are grounds to make them non-dischargeable:

  • Charges of credit cards (including overdue and late fees)
  • Collection agency accounts
  • Medical bills
  • Personal loans
  • Utility bills
  • Dishonored checks (except if fraudulent)
  • Student loans (in cases where it is proven that you endured undue hardship)
  • Repossession deficiency balances
  • Auto accident claims (except DUI related cases)
  • Business debts
  • Rent debts (including past rents that are due)
  • Civil court judgments
  • Tax penalties and unpaid taxes 
  • Attorney fees (except those pertaining to child support and alimony cases)
  • Revolving charge accounts 
  • Social security overpayments
  • Veterans assistance loans and overpayments 

Non-Dischargeable Debts in Bankruptcy Chapter 7
There are different types of Bankruptcy, some debts are nondischargeable in Chapter 7 but can be wiped out in Chapter 13. These types of debts in Chapter 7 are automatically deemed as nondischargeable without needing a hearing in court: 

  • Unscheduled debts (all kinds of debts that are not in the bankruptcy petition), with the exception that the creditor had actual knowledge or notice about such filing
  • Certain taxes
  • Spousal or child support debts or alimony
  • Debts owed to former spouse or child if they arose out of a divorce or separation
  • Fines, penalties and debts to government agencies
  • Student loans (if not exempted)
  • Personal injury debts caused by the debtor driving a motor vehicle while under the influence of alcohol
  • Certain tax-advantaged retirement plans debts
  • Certain condominium debts or cooperative housing fees (such as homeowners association fees)
  • Attorney fees in child custody and support cases
  • Court fines and penalties, including criminal restitution

Debts not Dischargeable if the Creditor Objects
Not all debts are automatically wiped out. The creditors must ask the bankruptcy court first to know whether or not such debts can be discharged. If the creditors do not raise any objection or issue or if they do but the court doesn’t allow it, these debts are discharged.

  • Credit card purchases for luxury goods
  • Cash advances
  • Debts obtained by fraud or false pretenses
  • Debts incurred due to willful and malicious injury

Planning to file for a Chapter 7 Bankruptcy?
While declaring bankruptcy and bankruptcy filing may be done by any person without a bankruptcy lawyer, you will be responsible for fully understanding everything related to the law. We at Allmand Law are experienced in the field of bankruptcy cases. If you want to know how to file for bankruptcy but you are not sure of what bankruptcy form to avail or maybe you’re worried about potential liabilities, our bankruptcy attorneys can help you. We may be able to answer such questions for you including bankruptcy exemptions, debt settlement, insolvencies, mortgage payments, debt management and many more. Call us now for free legal advice.
The post Understanding Dischargeable Debts in Chapter 7 Bankruptcy appeared first on Allmand Law Firm, PLLC.



4 years 6 months ago

Bankruptcy is the legal process pertaining to people who cannot afford to pay their remaining debts in order to get a chance to a fresh start. The Bankruptcy laws offer unburdens overwhelmed debtors who are unable to pay their outstanding balances and, at the same time, help the creditors get paid from whatever kind of assets the debtor has no need for. Bankruptcies are often used as a last resort but it is not a sure way to solve all your financial problems. It will cover only certain debts that are eliminated when you file for bankruptcy.
What is a Discharge?
A discharge enables the debtor to be free of debt and prevents the creditors from taking collecting actions against the debtor. In simpler terms, the debts are wiped out and the debtor no longer needs to pay those that are discharged.
However, while most debts can be discharged, not all kinds of debts are removed when you declare bankruptcy. 
What are the Debts that can be Discharged?
 Dischargeable DebtsIn a bankruptcy, “Common Categories of Dischargeable Debts,” states that the debt must meet the qualifications and timing requirements. It works by filing for bankruptcy in the bankruptcy court before and after the case described as follows:

  • Pre-filing debt – is a pre-petition debt obligation that you have before you file for bankruptcy. When the case ends, the court will wipe out or discharge the debts included and qualified in the pre-petition debt such as credit card balances, medical debt, and personal loans.
  • Post-filing debt – are the debts and bills you need to present to the court that you incurred after submitting the pre-petition debt. In all kinds of bankruptcy cases. You are still obligated to pay for the balances the you incur even if the case isn’t over.

Among all the debts obtained, only those debts that you have before filing bankruptcy will be discharged. As for the subsequent debts, you still need to repay those. Take note that if you either fail to follow the bankruptcy process or your debt doesn’t qualify for a discharge, then these can be barriers for you to have your debts wiped out.
Common Categories of Dischargeable Debt
Under the Bankruptcy Code, there are 19 categories of debt that are not capable of being discharged. Everything else not included can be wiped out. However, you need to be mindful that misconduct or fraud in connection to the debts are grounds to make them non-dischargeable:

  • Charges of credit cards (including overdue and late fees)
  • Collection agency accounts
  • Medical bills
  • Personal loans
  • Utility bills
  • Dishonored checks (except if fraudulent)
  • Student loans (in cases where it is proven that you endured undue hardship)
  • Repossession deficiency balances
  • Auto accident claims (except DUI related cases)
  • Business debts
  • Rent debts (including past rents that are due)
  • Civil court judgments
  • Tax penalties and unpaid taxes 
  • Attorney fees (except those pertaining to child support and alimony cases)
  • Revolving charge accounts 
  • Social security overpayments
  • Veterans assistance loans and overpayments 

Non-Dischargeable Debts in Bankruptcy Chapter 7
There are different types of Bankruptcy, some debts are nondischargeable in Chapter 7 but can be wiped out in Chapter 13. These types of debts in Chapter 7 are automatically deemed as nondischargeable without needing a hearing in court: 

  • Unscheduled debts (all kinds of debts that are not in the bankruptcy petition), with the exception that the creditor had actual knowledge or notice about such filing
  • Certain taxes
  • Spousal or child support debts or alimony
  • Debts owed to former spouse or child if they arose out of a divorce or separation
  • Fines, penalties and debts to government agencies
  • Student loans (if not exempted)
  • Personal injury debts caused by the debtor driving a motor vehicle while under the influence of alcohol
  • Certain tax-advantaged retirement plans debts
  • Certain condominium debts or cooperative housing fees (such as homeowners association fees)
  • Attorney fees in child custody and support cases
  • Court fines and penalties, including criminal restitution

Debts not Dischargeable if the Creditor Objects
Not all debts are automatically wiped out. The creditors must ask the bankruptcy court first to know whether or not such debts can be discharged. If the creditors do not raise any objection or issue or if they do but the court doesn’t allow it, these debts are discharged.

  • Credit card purchases for luxury goods
  • Cash advances
  • Debts obtained by fraud or false pretenses
  • Debts incurred due to willful and malicious injury

Planning to file for a Chapter 7 Bankruptcy?
While declaring bankruptcy and bankruptcy filing may be done by any person without a bankruptcy lawyer, you will be responsible for fully understanding everything related to the law. We at Allmand Law are experienced in the field of bankruptcy cases. If you want to know how to file for bankruptcy but you are not sure of what bankruptcy form to avail or maybe you’re worried about potential liabilities, our bankruptcy attorneys can help you. We may be able to answer such questions for you including bankruptcy exemptions, debt settlement, insolvencies, mortgage payments, debt management and many more. Call us now for free legal advice.
The post Understanding Dischargeable Debts in Chapter 7 Bankruptcy appeared first on Allmand Law Firm, PLLC.



4 years 2 months ago

Bankruptcy is the legal process pertaining to people who cannot afford to pay their remaining debts in order to get a chance to a fresh start. The Bankruptcy laws offer unburdens overwhelmed debtors who are unable to pay their outstanding balances and, at the same time, help the creditors get paid from whatever kind of assets the debtor has no need for. Bankruptcies are often used as a last resort but it is not a sure way to solve all your financial problems. It will cover only certain debts that are eliminated when you file for bankruptcy.
What is a Discharge?
A discharge enables the debtor to be free of debt and prevents the creditors from taking collecting actions against the debtor. In simpler terms, the debts are wiped out and the debtor no longer needs to pay those that are discharged.
However, while most debts can be discharged, not all kinds of debts are removed when you declare bankruptcy. 
What are the Debts that can be Discharged?
 Dischargeable DebtsIn a bankruptcy, “Common Categories of Dischargeable Debts,” states that the debt must meet the qualifications and timing requirements. It works by filing for bankruptcy in the bankruptcy court before and after the case described as follows:

  • Pre-filing debt – is a pre-petition debt obligation that you have before you file for bankruptcy. When the case ends, the court will wipe out or discharge the debts included and qualified in the pre-petition debt such as credit card balances, medical debt, and personal loans.
  • Post-filing debt – are the debts and bills you need to present to the court that you incurred after submitting the pre-petition debt. In all kinds of bankruptcy cases. You are still obligated to pay for the balances the you incur even if the case isn’t over.

Among all the debts obtained, only those debts that you have before filing bankruptcy will be discharged. As for the subsequent debts, you still need to repay those. Take note that if you either fail to follow the bankruptcy process or your debt doesn’t qualify for a discharge, then these can be barriers for you to have your debts wiped out.
Common Categories of Dischargeable Debt
Under the Bankruptcy Code, there are 19 categories of debt that are not capable of being discharged. Everything else not included can be wiped out. However, you need to be mindful that misconduct or fraud in connection to the debts are grounds to make them non-dischargeable:

  • Charges of credit cards (including overdue and late fees)
  • Collection agency accounts
  • Medical bills
  • Personal loans
  • Utility bills
  • Dishonored checks (except if fraudulent)
  • Student loans (in cases where it is proven that you endured undue hardship)
  • Repossession deficiency balances
  • Auto accident claims (except DUI related cases)
  • Business debts
  • Rent debts (including past rents that are due)
  • Civil court judgments
  • Tax penalties and unpaid taxes 
  • Attorney fees (except those pertaining to child support and alimony cases)
  • Revolving charge accounts 
  • Social security overpayments
  • Veterans assistance loans and overpayments 

Non-Dischargeable Debts in Bankruptcy Chapter 7
There are different types of Bankruptcy, some debts are nondischargeable in Chapter 7 but can be wiped out in Chapter 13. These types of debts in Chapter 7 are automatically deemed as nondischargeable without needing a hearing in court: 

  • Unscheduled debts (all kinds of debts that are not in the bankruptcy petition), with the exception that the creditor had actual knowledge or notice about such filing
  • Certain taxes
  • Spousal or child support debts or alimony
  • Debts owed to former spouse or child if they arose out of a divorce or separation
  • Fines, penalties and debts to government agencies
  • Student loans (if not exempted)
  • Personal injury debts caused by the debtor driving a motor vehicle while under the influence of alcohol
  • Certain tax-advantaged retirement plans debts
  • Certain condominium debts or cooperative housing fees (such as homeowners association fees)
  • Attorney fees in child custody and support cases
  • Court fines and penalties, including criminal restitution

Debts not Dischargeable if the Creditor Objects
Not all debts are automatically wiped out. The creditors must ask the bankruptcy court first to know whether or not such debts can be discharged. If the creditors do not raise any objection or issue or if they do but the court doesn’t allow it, these debts are discharged.

  • Credit card purchases for luxury goods
  • Cash advances
  • Debts obtained by fraud or false pretenses
  • Debts incurred due to willful and malicious injury

Planning to file for a Chapter 7 Bankruptcy?
While declaring bankruptcy and bankruptcy filing may be done by any person without a bankruptcy lawyer, you will be responsible for fully understanding everything related to the law. We at Allmand Law are experienced in the field of bankruptcy cases. If you want to know how to file for bankruptcy but you are not sure of what bankruptcy form to avail or maybe you’re worried about potential liabilities, our bankruptcy attorneys can help you. We may be able to answer such questions for you including bankruptcy exemptions, debt settlement, insolvencies, mortgage payments, debt management and many more. Call us now for free legal advice.
The post Understanding Dischargeable Debts in Chapter 7 Bankruptcy appeared first on Allmand Law Firm, PLLC.



4 years 2 months ago

Bankruptcy is the legal process pertaining to people who cannot afford to pay their remaining debts in order to get a chance to a fresh start. The Bankruptcy laws offer unburdens overwhelmed debtors who are unable to pay their outstanding balances and, at the same time, help the creditors get paid from whatever kind of assets the debtor has no need for. Bankruptcies are often used as a last resort but it is not a sure way to solve all your financial problems. It will cover only certain debts that are eliminated when you file for bankruptcy.
What is a Discharge?
A discharge enables the debtor to be free of debt and prevents the creditors from taking collecting actions against the debtor. In simpler terms, the debts are wiped out and the debtor no longer needs to pay those that are discharged.
However, while most debts can be discharged, not all kinds of debts are removed when you declare bankruptcy. 
What are the Debts that can be Discharged?
 Dischargeable DebtsIn a bankruptcy, “Common Categories of Dischargeable Debts,” states that the debt must meet the qualifications and timing requirements. It works by filing for bankruptcy in the bankruptcy court before and after the case described as follows:

  • Pre-filing debt – is a pre-petition debt obligation that you have before you file for bankruptcy. When the case ends, the court will wipe out or discharge the debts included and qualified in the pre-petition debt such as credit card balances, medical debt, and personal loans.
  • Post-filing debt – are the debts and bills you need to present to the court that you incurred after submitting the pre-petition debt. In all kinds of bankruptcy cases. You are still obligated to pay for the balances the you incur even if the case isn’t over.

Among all the debts obtained, only those debts that you have before filing bankruptcy will be discharged. As for the subsequent debts, you still need to repay those. Take note that if you either fail to follow the bankruptcy process or your debt doesn’t qualify for a discharge, then these can be barriers for you to have your debts wiped out.
Common Categories of Dischargeable Debt
Under the Bankruptcy Code, there are 19 categories of debt that are not capable of being discharged. Everything else not included can be wiped out. However, you need to be mindful that misconduct or fraud in connection to the debts are grounds to make them non-dischargeable:

  • Charges of credit cards (including overdue and late fees)
  • Collection agency accounts
  • Medical bills
  • Personal loans
  • Utility bills
  • Dishonored checks (except if fraudulent)
  • Student loans (in cases where it is proven that you endured undue hardship)
  • Repossession deficiency balances
  • Auto accident claims (except DUI related cases)
  • Business debts
  • Rent debts (including past rents that are due)
  • Civil court judgments
  • Tax penalties and unpaid taxes 
  • Attorney fees (except those pertaining to child support and alimony cases)
  • Revolving charge accounts 
  • Social security overpayments
  • Veterans assistance loans and overpayments 

Non-Dischargeable Debts in Bankruptcy Chapter 7
There are different types of Bankruptcy, some debts are nondischargeable in Chapter 7 but can be wiped out in Chapter 13. These types of debts in Chapter 7 are automatically deemed as nondischargeable without needing a hearing in court: 

  • Unscheduled debts (all kinds of debts that are not in the bankruptcy petition), with the exception that the creditor had actual knowledge or notice about such filing
  • Certain taxes
  • Spousal or child support debts or alimony
  • Debts owed to former spouse or child if they arose out of a divorce or separation
  • Fines, penalties and debts to government agencies
  • Student loans (if not exempted)
  • Personal injury debts caused by the debtor driving a motor vehicle while under the influence of alcohol
  • Certain tax-advantaged retirement plans debts
  • Certain condominium debts or cooperative housing fees (such as homeowners association fees)
  • Attorney fees in child custody and support cases
  • Court fines and penalties, including criminal restitution

Debts not Dischargeable if the Creditor Objects
Not all debts are automatically wiped out. The creditors must ask the bankruptcy court first to know whether or not such debts can be discharged. If the creditors do not raise any objection or issue or if they do but the court doesn’t allow it, these debts are discharged.

  • Credit card purchases for luxury goods
  • Cash advances
  • Debts obtained by fraud or false pretenses
  • Debts incurred due to willful and malicious injury

Planning to file for a Chapter 7 Bankruptcy?
While declaring bankruptcy and bankruptcy filing may be done by any person without a bankruptcy lawyer, you will be responsible for fully understanding everything related to the law. We at Allmand Law are experienced in the field of bankruptcy cases. If you want to know how to file for bankruptcy but you are not sure of what bankruptcy form to avail or maybe you’re worried about potential liabilities, our bankruptcy attorneys can help you. We may be able to answer such questions for you including bankruptcy exemptions, debt settlement, insolvencies, mortgage payments, debt management and many more. Call us now for free legal advice.
The post Understanding Dischargeable Debts in Chapter 7 Bankruptcy appeared first on Allmand Law Firm, PLLC.



4 years 8 months ago

Commercial leases in New York City, COVID-19 and Recent ProtestsAs a result of COVID-19, recent protests and the advent of technologies such as Zoom and Google Meet, many tenants have excess office space/s that they cannot or do not want to continue to rent  and would   like to terminate their lease or stop paying rent.At Shenwick & Associates, we have received many calls from clients with these issues and we have developed a strategy to address them.First, we review the company's financial information including a recent balance sheet, income statement,  the commercial lease and guaranty, if any. Second, we determine if the company is a candidate for a bankruptcy filing, either chapter 7 (a liquidation where the company closes as a result of the filing), a small business Subchapter 5 bankruptcy filing, or a full-blown chapter 11 business bankruptcy filing.In the case of a Chapter 7 filing, the lease will terminate; however, the Chapter 7 bankruptcy trustee appointed to the case will also liquidate or close the business. For businesses that are losing money or do not see a bright future, this may be a good strategy.A company that wants to remain in business, but terminate or reject their lease, should consider a bankruptcy filing under  new Subchapter 5, which is a fast-paced, less costly chapter 11 business bankruptcy filing. As part of a Subchapter 5 bankruptcy filing, the lease can be rejected, and the landlord would be paid their lease rejection damages and other monies owed over 5 years or less from disposable income of the business.If Subchapter V does not work due to the debt limit of $7,500,000 or for other reasons, a company can consider a full-blown chapter 11 bankruptcy filing. However, they would want to consider the cost from a chapter 11 filing, versus the expected savings from rejecting the lease. Chapter 11 is a complicated, risky and expensive process for many companies.Another strategy that we have been using with much success is preparing a bankruptcy petition, without filing the petition (a so called Pro-Forma Bankruptcy Petition). This bankruptcy petition would accurately disclose the assets, liabilities and earnings of the company. Then we would forward that bankruptcy petition to the landlord or their counsel indicating that if the tenant and landlord cannot reach an agreement where the tenant is allowed to terminate their lease (pursuant to a Lease Surrender Agreement), then the tenant or company will file for bankruptcy. The benefit of this strategy is that it is quick, relatively inexpensive, the landlord gets financial disclosure regarding the company or tenants finances upfront without litigation or discovery and we convince the landlord that releasing the tenant from their lease is a “win-win” for both the tenant and the landlord. How is this strategy a win for the landlord? The landlord keeps the tenant’s security deposit, the Landlord will also  save substantial money on bankruptcy and landlord tenant legal fees, they remove an unprofitable tenant from their building, and they obtain possession of the premises quickly allowing them to re-let the space.One of the reasons that we have had much success with this strategy in these trying times is that we have been filing  bankruptcy petitions  for over 20 years and the landlord or their counsel can Pacer our law firm’s bankruptcy filings, or visit our website and blog. Based upon our work and experience in this area of the law, landlords realize that bankruptcy is a real option for the tenant not an idle threat. Clients or their advisors who would like to discuss these strategies with Jim Shenwick or schedule a consultation can reach him at 212-541-6224 or email him at [email protected]


4 years 9 months ago

A Tidal Wave of Bankruptcies Is Coming
Experts foresee so many filings in the coming months that the courts could struggle to salvage the businesses that are worth saving.

Already, companies large and small are succumbing to the effects of the coronavirus. They include household names like Hertz and J. Crew and comparatively anonymous energy companies like Diamond Offshore Drilling and Whiting Petroleum.

And the wave of bankruptcies is going to get bigger.

Edward I. Altman, the creator of the Z score, a widely used method of predicting business failures, estimated that this year will easily set a record for so-called mega bankruptcies — filings by companies with $1 billion or more in debt. And he expects the number of merely large bankruptcies — at least $100 million — to challenge the record set the year after the 2008 economic crisis.

Even a meaningful rebound in economic activity over the coming months won’t stop it, said Mr. Altman, the Max L. Heine professor of finance, emeritus, at New York University’s Stern School of Business. “The really hurting companies are too far gone to be saved,” he said.

Many are teetering on the edge. Chesapeake Energy, once the second-largest natural gas company in the country, is wrestling with about $9 billion in debt. Tailored Brands — the parent of Men’s Wearhouse, Jos. A. Bank and K&G — recently disclosed that it, too, might have to file for bankruptcy protection. So did Weatherford International, an oil field services company that emerged from bankruptcy only in December.

More than 6,800 companies filed for Chapter 11 bankruptcy protection last year, and this year will almost certainly have more. The flood of petitions from the worst economic downturn since the Great Depression could swamp the system, making it harder to save the companies that can be rescued, bankruptcy experts said.

Most good-size companies that go into bankruptcy try to restructure themselves, working out payment agreements for their debts so they can stay open. But if a plan can’t be worked out — or isn’t successful — they can be liquidated instead. Equipment and property are sold off to pay debts, and the company disappears.

Without reform in the system, “we anticipate that a significant fraction of viable small businesses will be forced to liquidate, causing high and irreversible economic losses,” a group of academics said in a letter to Congress in May. “Workers will lose jobs even in otherwise viable businesses.”

Among their suggestions: increasing budgets to recall retired judges and hire more clerks, and giving companies more time to come up with workable plans to prevent them from being sold off for parts.

“Tight deadlines may lead to overly optimistic restructuring plans and subsequent refilings that will congest courts and delay future recoveries,” they wrote.

The pandemic — with its lockdowns, which have just started to ease — was enough on its own to put some businesses under. The gym chain 24 Hour Fitness, for example, declared bankruptcy this week, saying it would close 100 locations because of financial problems that its chief executive attributed entirely to the coronavirus.

But in many cases, the coronavirus crisis exposed deeper problems, like staggering debts run up by companies whose business models were already struggling to deal with changes in consumer behavior.

Hertz has been weighed down by debt created in a leveraged buyout more than a decade ago, and added to it with the acquisition of Dollar Thrifty in 2012. As it was battling direct competitors, the ascent of Uber and Lyft further upended the rental-car industry.

J. Crew and Neiman Marcus were carrying heavy debt loads from leveraged buyouts by private equity firms while struggling to deal with the changing preferences of shoppers who increasingly buy online.

Oil and gas companies like Diamond and Whiting borrowed heavily to expand when commodities prices were much higher. Those prices started to fall as production increased, and plunged further still when Russia and Saudi Arabia got into a price war shortly before the economic shutdowns began.

(And then there are cases that have nothing to do with the pandemic but nonetheless take up time and energy in the courts. Borden Dairy, a Dallas company with a history that goes back to 1857, declared bankruptcy in January, a victim of declining prices, rising costs and changing tastes.)

A run of defaults looks almost inevitable. At the end of the first quarter of this year, U.S. companies had amassed nearly $10.5 trillion in debt — by far the most since the Federal Reserve Bank of St. Louis began tracking the figure at the end of World War II.

“An explosion in corporate debt,” Mr. Altman said.

Having a lot more debt to deal with is likely to make the coming bankruptcies a bruising experience for unsecured creditors, who may include retirees with pensions or health benefits, vendors waiting to be paid, tort plaintiffs whose lawsuits are cut short and sometimes even current workers. If a company goes into bankruptcy with more secured debts than the value of its assets, the secured creditors — including vulture investors who bought up the debt for a song — can walk away with virtually everything.

The sums at play in some of these cases will be enormous. Mr. Altman expects at least 66 cases with more than $1 billion in debt this year, eclipsing 2009’s mark of 49. He also predicted 192 bankruptcies involving at least $100 million in debt, which would trail only 2009’s record of 242.

Robert J. Keach, a director of the American College of Bankruptcy, said many companies had so far managed to put off bankruptcy by amassing cash and conserving it as best they can: drawing down existing credit lines, furloughing workers, delaying projects and taking advantage of federal and state pandemic-relief programs.

But when those programs expire, the companies will start burning through their cash. That’s when bankruptcy filings are likely to soar and stay elevated, Mr. Keach said.

Expect “a Covid-19 cliff” in the next 30 to 60 days, he said.

Companies that received loans under the federal Paycheck Protection Program may be waiting to file, said Mr. Keach, who practices bankruptcy law with the firm of Bernstein Shur in Portland, Maine. The loans can be converted to grants if the companies meet certain requirements, and if the borrowers can put off bankruptcy until they’re sure they won’t have to pay the money back, they will have more cash when they file.

That’s an important consideration, because Chapter 11 is expensive. A bankrupt company must pay the fees of the lawyers and other professionals that help it reorganize, as well as the fees of those who advise the official creditors’ committees.

The experts’ recommendations to Congress walk a fine line. They suggest allowing companies more time to come up with reorganization plans, even though Chapter 11 cases are supposed to move quickly so bankrupt companies don’t burn through their cash before they reorganize.

Generally, the longer a company stays in bankruptcy, the greater the chances of a liquidation. And that increases the likelihood that the company’s troubles will spread: Suppliers of raw materials could fold if a manufacturer languishes in bankruptcy, and smaller stores in entirely differently lines of business can suffer if a shopping-mall anchor can’t stay open.

These risks are real, said Robert E. Gerber, who retired in 2016 as a bankruptcy judge in the Southern District of New York. One of his cases was the 2009 bankruptcy of General Motors, which moved at lightning speed to keep the automaker from going under for good.

“If G.M. had failed, God knows how many companies in the supply chain would have failed, and this would have snowballed terribly,” said Mr. Gerber, who is now of counsel with the Joseph Hage Aaronson firm. The cascade would have wiped out paychecks to workers throughout the supply chain, threatening other businesses and even the finances of the local governments that count on them for tax revenue.

That, Mr. Gerber said, makes it imperative that the bankruptcy system have the resources to deal with the coming rush of cases.

“Bankruptcy can’t print money for those companies,” he said, “but it can give a good number of them a chance of survival.”


4 years 7 months ago

Should I file for bankruptcy? This is one of the most asked questions among people in financial distress who owe more than what they can pay. If you are in the same situation, don’t consider filing bankruptcy as a dangerous option. In fact, a bankruptcy petition may give you the faster route to debt relief as compared to emptying your savings and finances. There are several types of bankruptcy available depending on your situation.
Before filing bankruptcy, make sure to conduct an evaluation of your financial condition. To get you started in your personal assessment, here are some answers to the most frequently asked questions of debtors considering bankruptcy: 

  • Are you experiencing creditor harassment?

When loan payments are missed, creditors may constantly give you demands through calls, visits, or even lawsuits. Evading those you owe is not the preferred option as there may be legal consequences. When you file for bankruptcy, you can attain relief from those harassing you because of the “automatic stay” that the bankruptcy court will issue. This order shall temporarily put all collection activities on hold, allowing a debtor some distance from the stress.

  • Do you have credit card debt or outstanding balances in your personal accounts?

When a credit card is the only way you are able to pay for basic necessities, then bankruptcy presents as a good option. You may want to consider Chapter 7 which is casually referred to as straight bankruptcy. Declaring Chapter 7 bankruptcy will liquidate your remaining assets to pay off your loans to banks and credit card companies.

  • Do you feel that your finances are spinning out of control?

should I file bankruptcyFor those whose medical expenses and personal loans are piling up continually, choosing bankruptcy becomes an easy option especially when there is no reliable source of income due to unemployment or other reasons. Likewise, losing track of all monthly payments owed over an extended period of time is often another indicator to declare bankruptcy and put a halt on your running debt total. A bankruptcy lawyer may enlighten you on how bankruptcy petitions may help you regain control of your finances.

  • Do you have liquid assets and properties?

Your assets include motor vehicles, savings, and other accounts, retirement funds, stocks, and bonds, or real estate. Having any of these in your possession can help you get out of insolvency as these are key determinants for qualifying under Chapter 7 bankruptcy. If you are unable to pay loans with your current or projected future income, Chapter 7 is a good choice since you can expect to receive a debt discharge notice from the court in less than four months after filing bankruptcy. The downside here is that almost all of your nonexempt property will be sold off and the record of being bankrupt will reflect on your credit report, thereby hurting your credit score in the next ten years.
Debtors who own valuable personal assets such as a company or home, and have consistent annual income, may choose bankruptcy Chapter 13 instead, also known as a reorganization bankruptcy. Under this type, they may keep their properties but will need a repayment plan specifying how they will be paying off their debts in the next three to five years. 
Evaluating Your Financial Circumstances
An affirmative response to any of the five questions raised above indicates the need for a more in-depth financial scanning. This means that it is time to collect all the loans, utility bills, credit statements, or mortgages piling up to get your running total on personal debts. Then, try to subtract the total amount owed to the estimated value of the assets in your possession. If there  is a large deficit, then you may consider declaring bankruptcy with the court to help you bridge the gap. 
Are you considering filing for bankruptcy? We are here to help you!
At first, it may be difficult to admit how deep in debt you are. This is why the bankruptcy law was created – to protect your best interest. If you have a lingering desire to wipe your financial slate clean, then it may be the best time to face the next question “How should I file for bankruptcy?”. 
Once you voluntarily file for bankruptcy, you will need to consult with credible bankruptcy lawyers to weigh all your options and determine the best type of bankruptcy that applies to you. Having a good bankruptcy attorney and the right legal knowledge on bankruptcy laws are essential to a seamless bankruptcy process. A well-planned and organized bankruptcy filing has a higher chance of getting your debts discharged, giving you a better chance of putting an end to your financial problems. 
Ready? Receive a free consultation from one of our experienced bankruptcy attorneys through Northwest Debt Relief Law Firm and take the first step toward a fresh start.
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The post Should You File Bankruptcy? Assessing Your Financial Situation appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.


4 years 9 months ago

Figuring out your financial situation is imperative in a bankruptcy petition. For starters, you need certain details to be able to correctly accomplish your bankruptcy forms. In case you’re hiring a bankruptcy lawyer, the information is also important for him or her to provide you with proper legal help with the right debt relief solution. Unfortunately, many potential filers go to bankruptcy lawyers without any idea what their financial situation is like.
Hiring a lawyer specializing in bankruptcy law is actually the most prudent first step to take if you want to declare bankruptcy. The bankruptcy code has different types of bankruptcy, so your lawyer will help you understand which bankruptcy chapter you should file bankruptcy under. If you’re filing personal bankruptcy, you’ll get legal advice on whether to opt for liquidation or reorganization. You can rest assured that you’ll be making informed decisions as well as avoiding any violation of bankruptcy laws.
Making Lists
Filing bankruptcy with the bankruptcy court requires that you have a clear picture of your finances, so before you file for bankruptcy protection, take the time to gather the relevant data. If you want to petition for bankruptcy to rid yourself of financial problems and get out of debt, there are a couple of lists you need to make before filing.

  • All debts you’ve been unable to pay – secured and unsecured debts, as well as dischargeable and non-dischargeable debts.
  • All your exempt and non-exempt assets with their respective current values.
  1. List of Debts

Bankruptcy Information Filing for bankruptcy definitely requires that you furnish a list of all your debts and creditors. You must include all debts, every secured debt such as a car loan or a mortgage, and every unsecured debt such as medical bills and credit card debt. Name every creditor as well and how much you owe each one. Also include debt collection agencies that have contacted you. This way, your bankruptcy attorney can formulate a strategy for dealing with all the debt collectors involved in your bankruptcy case.
In a bankruptcy filing, certain debts like child support and student loans cannot be discharged. It’s important to include them even if you cannot discharge them since they directly impact your disposable income. You also have to indicate to your lawyer if you have a lawsuit filed against you or if there’s a possibility that somebody might file one against you.

  1. List of Assets

Disclosing all your assets is necessary to the bankruptcy process, so when declaring bankruptcy, you need to disclose everything, including ones that you can claim as bankruptcy exemptions. Unfortunately, some assets such as furniture, vehicles, and real estate are not that easy to assign value to. Here are some things bankruptcy attorneys advise their clients to do so they can give a good estimate of an asset’s value.

  • Furniture and other personal items – Price them as you would for a yard sale. Go to Craigslist and eBay to see how much similar items are worth. Don’t let your sentimental attachment to them cause you to overprice.
  • Vehicles – Go to Edmunds.com to check how sellers are pricing your car model. Make sure to consider your own car’s mileage and condition when you price it.
  • Real estate – Price your property as you would for an absolute auction or go online to see how much similar properties in the area are selling for. You could also simply look at your current tax bill and base your price on the county’s property value administrator’s estimate.

Other Pertinent Bankruptcy Information
Besides the assets, debts, and creditors lists, you also need to figure out the following data:

  • Your entire household’s monthly income.
  • Your household’s monthly expenses (get the average of the last three months.)

Want Legal Advice for This Legal Process? Contact a Texas  Bankruptcy Attorney Today!
Bankruptcies can give bankrupt debtors the fresh start they need. For help with bankruptcy proceedings, call us at Allmand Law Firm, PLLC to schedule a free legal consultation with one of Texas’s experienced bankruptcy attorneys.
The post Bankruptcy Information You Need appeared first on Allmand Law Firm, PLLC.



4 years 6 months ago

Figuring out your financial situation is imperative in a bankruptcy petition. For starters, you need certain details to be able to correctly accomplish your bankruptcy forms. In case you’re hiring a bankruptcy lawyer, the information is also important for him or her to provide you with proper legal help with the right debt relief solution. Unfortunately, many potential filers go to bankruptcy lawyers without any idea what their financial situation is like.
Hiring a lawyer specializing in bankruptcy law is actually the most prudent first step to take if you want to declare bankruptcy. The bankruptcy code has different types of bankruptcy, so your lawyer will help you understand which bankruptcy chapter you should file bankruptcy under. If you’re filing personal bankruptcy, you’ll get legal advice on whether to opt for liquidation or reorganization. You can rest assured that you’ll be making informed decisions as well as avoiding any violation of bankruptcy laws.
Making Lists
Filing bankruptcy with the bankruptcy court requires that you have a clear picture of your finances, so before you file for bankruptcy protection, take the time to gather the relevant data. If you want to petition for bankruptcy to rid yourself of financial problems and get out of debt, there are a couple of lists you need to make before filing.

  • All debts you’ve been unable to pay – secured and unsecured debts, as well as dischargeable and non-dischargeable debts.
  • All your exempt and non-exempt assets with their respective current values.
  1. List of Debts

Bankruptcy Information Filing for bankruptcy definitely requires that you furnish a list of all your debts and creditors. You must include all debts, every secured debt such as a car loan or a mortgage, and every unsecured debt such as medical bills and credit card debt. Name every creditor as well and how much you owe each one. Also include debt collection agencies that have contacted you. This way, your bankruptcy attorney can formulate a strategy for dealing with all the debt collectors involved in your bankruptcy case.
In a bankruptcy filing, certain debts like child support and student loans cannot be discharged. It’s important to include them even if you cannot discharge them since they directly impact your disposable income. You also have to indicate to your lawyer if you have a lawsuit filed against you or if there’s a possibility that somebody might file one against you.

  1. List of Assets

Disclosing all your assets is necessary to the bankruptcy process, so when declaring bankruptcy, you need to disclose everything, including ones that you can claim as bankruptcy exemptions. Unfortunately, some assets such as furniture, vehicles, and real estate are not that easy to assign value to. Here are some things bankruptcy attorneys advise their clients to do so they can give a good estimate of an asset’s value.

  • Furniture and other personal items – Price them as you would for a yard sale. Go to Craigslist and eBay to see how much similar items are worth. Don’t let your sentimental attachment to them cause you to overprice.
  • Vehicles – Go to Edmunds.com to check how sellers are pricing your car model. Make sure to consider your own car’s mileage and condition when you price it.
  • Real estate – Price your property as you would for an absolute auction or go online to see how much similar properties in the area are selling for. You could also simply look at your current tax bill and base your price on the county’s property value administrator’s estimate.

Other Pertinent Bankruptcy Information
Besides the assets, debts, and creditors lists, you also need to figure out the following data:

  • Your entire household’s monthly income.
  • Your household’s monthly expenses (get the average of the last three months.)

Want Legal Advice for This Legal Process? Contact a Texas  Bankruptcy Attorney Today!
Bankruptcies can give bankrupt debtors the fresh start they need. For help with bankruptcy proceedings, call us at Allmand Law Firm, PLLC to schedule a free legal consultation with one of Texas’s experienced bankruptcy attorneys.
The post Bankruptcy Information You Need appeared first on Allmand Law Firm, PLLC.



4 years 2 months ago

Figuring out your financial situation is imperative in a bankruptcy petition. For starters, you need certain details to be able to correctly accomplish your bankruptcy forms. In case you’re hiring a bankruptcy lawyer, the information is also important for him or her to provide you with proper legal help with the right debt relief solution. Unfortunately, many potential filers go to bankruptcy lawyers without any idea what their financial situation is like.
Hiring a lawyer specializing in bankruptcy law is actually the most prudent first step to take if you want to declare bankruptcy. The bankruptcy code has different types of bankruptcy, so your lawyer will help you understand which bankruptcy chapter you should file bankruptcy under. If you’re filing personal bankruptcy, you’ll get legal advice on whether to opt for liquidation or reorganization. You can rest assured that you’ll be making informed decisions as well as avoiding any violation of bankruptcy laws.
Making Lists
Filing bankruptcy with the bankruptcy court requires that you have a clear picture of your finances, so before you file for bankruptcy protection, take the time to gather the relevant data. If you want to petition for bankruptcy to rid yourself of financial problems and get out of debt, there are a couple of lists you need to make before filing.

  • All debts you’ve been unable to pay – secured and unsecured debts, as well as dischargeable and non-dischargeable debts.
  • All your exempt and non-exempt assets with their respective current values.
  1. List of Debts

Bankruptcy Information Filing for bankruptcy definitely requires that you furnish a list of all your debts and creditors. You must include all debts, every secured debt such as a car loan or a mortgage, and every unsecured debt such as medical bills and credit card debt. Name every creditor as well and how much you owe each one. Also include debt collection agencies that have contacted you. This way, your bankruptcy attorney can formulate a strategy for dealing with all the debt collectors involved in your bankruptcy case.
In a bankruptcy filing, certain debts like child support and student loans cannot be discharged. It’s important to include them even if you cannot discharge them since they directly impact your disposable income. You also have to indicate to your lawyer if you have a lawsuit filed against you or if there’s a possibility that somebody might file one against you.

  1. List of Assets

Disclosing all your assets is necessary to the bankruptcy process, so when declaring bankruptcy, you need to disclose everything, including ones that you can claim as bankruptcy exemptions. Unfortunately, some assets such as furniture, vehicles, and real estate are not that easy to assign value to. Here are some things bankruptcy attorneys advise their clients to do so they can give a good estimate of an asset’s value.

  • Furniture and other personal items – Price them as you would for a yard sale. Go to Craigslist and eBay to see how much similar items are worth. Don’t let your sentimental attachment to them cause you to overprice.
  • Vehicles – Go to Edmunds.com to check how sellers are pricing your car model. Make sure to consider your own car’s mileage and condition when you price it.
  • Real estate – Price your property as you would for an absolute auction or go online to see how much similar properties in the area are selling for. You could also simply look at your current tax bill and base your price on the county’s property value administrator’s estimate.

Other Pertinent Bankruptcy Information
Besides the assets, debts, and creditors lists, you also need to figure out the following data:

  • Your entire household’s monthly income.
  • Your household’s monthly expenses (get the average of the last three months.)

Want Legal Advice for This Legal Process? Contact a Texas  Bankruptcy Attorney Today!
Bankruptcies can give bankrupt debtors the fresh start they need. For help with bankruptcy proceedings, call us at Allmand Law Firm, PLLC to schedule a free legal consultation with one of Texas’s experienced bankruptcy attorneys.
The post Bankruptcy Information You Need appeared first on Allmand Law Firm, PLLC.



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