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There are several types of bankruptcy in California, including Chapter 7 bankruptcy, Chapter 13 bankruptcy, and, as this article will focus on, Chapter 11 bankruptcy. While individuals can file Chapter 11 bankruptcy in rare circumstances, Chapter 11 is more commonly used by businesses, ranging from small family-owned companies to well-known national franchises. Our Sacramento bankruptcy attorneys explore some common reasons businesses choose to file Chapter 11 in California. Could Chapter 11 be right for your company? Continue reading to find out.
3 Reasons Companies File Chapter 11 Bankruptcy in California
It might seem like there is an obvious reason to file Chapter 11 bankruptcy: your company is struggling with a period of financial difficulty. Unfortunately for business owners, making the decision to file Chapter 11 is not necessarily that simple or straightforward.
Filing Chapter 11 is a major decision with long-term implications for your business, so it is vital to thoroughly explore all potential avenues when determining whether Chapter 11 is truly the most effective and most appropriate option. Depending on factors like how the business entity is structured, how much debt you have incurred, and your vision for the future of the company, it may be more cost-efficient to file Chapter 7, file Chapter 13, or even weigh alternatives to bankruptcy for businesses, such as arranging an out-of-court “workout” with your creditors.
At The Bankruptcy Group, our trusted legal team includes not only Sacramento Chapter 11 attorneys, but also Sacramento Chapter 7 lawyers and Sacramento Chapter 13 attorneys, enabling us to give you a detailed comparison of the potential outcomes that could result from each approach. While it is impossible to say which type of bankruptcy is best for your business without first discussing your company’s financial situation, Chapter 11 might be right for your company if…
- You aren’t a sole proprietor. Federal bankruptcy regulations prohibit business entities like corporations and limited liability companies (LLCs) from filing Chapter 13 bankruptcy, leaving Chapter 7 and Chapter 11 as the primary bankruptcy options for business owners who are not sole proprietors. If you are a sole proprietor, contact our Folsom Chapter 13 lawyers to talk about whether filing Chapter 13 is the right option.
- Lawsuits are costing your company money. It is common for businesses to file Chapter 11 after litigation has been threatened or initiated. If the cost of defending your company is placing a financial strain on the business, Chapter 11, which generally stops pending litigation due to a federal provision called the “automatic stay,” could provide relief, provided avoiding litigation is not your only reason for filing, which could potentially lead to dismissal of your case for dealing in bad faith. While other types of bankruptcy also afford debtors the benefits of the automatic stay, which pauses debt collection – including the repossession of industrial equipment and foreclosure on commercial property – you may want to rule out Chapter 7 and focus on Chapter 11 if…
- You want to continue operating the business. Whether used for a business or an individual, Chapter 7 is a liquidation bankruptcy. However, unlike individual debtors who can protect their property from liquidation with bankruptcy exemptions, businesses do not have this option. If you file Chapter 7 for your business, the company’s assets will be liquidated, resulting in closure of the business. If you wish to put an end to the business, Chapter 7 may be a suitable option. However, if your intent is to keep the business running, Chapter 11 is a more appropriate approach. Chapter 11 is a complicated and rigorous process, but if you manage your bankruptcy carefully and effectively, your business can emerge from Chapter 11 successfully and go on to become profitable again.
Sacramento Business Bankruptcy Attorneys for Corporations, LLCs, Partnerships, and Sole Proprietorships
Whether your California business is structured as an S corporation, C corporation, limited liability company, general partnership, limited partnership, limited liability partnership, or sole proprietorship, the Sacramento business bankruptcy lawyers and Roseville small business bankruptcy lawyers of The Bankruptcy Group can help you evaluate your financial options for saving a failing or unprofitable business. Equipped with years of experience representing businesses across a broad spectrum of industries, our attorneys understand the unique challenges and opportunities that can arise in Chapter 11 cases. We are ready to help you navigate the laws as we work diligently to protect your best interests throughout the California bankruptcy process. Our goal is to help your business get the relief it needs to continue growing and succeeding again.
To learn more about whether Chapter 11 or other bankruptcy options are right for your company, call The Bankruptcy Group today at (800) 920-5351 for a free legal consultation. We proudly serve businesses in Roseville, Sacramento, Folsom, and other communities in the region.
The post 3 of the Most Common Reasons Companies File Chapter 11 in California appeared first on The Bankruptcy Group, P.C..
When an individual or couple files for bankruptcy, they are required to
disclose all of their assets in their petition. It is important for filers
to remember that they must be 100 percent truthful when disclosing assets
and that they not attempt to hide them. Some people think that by concealing
assets, they won’t be taken away by the court during bankruptcy.
However, doing so is considered perjury, which comes with a number of
penalties which ultimately may end up costing the filer even more.
There are many reasons why an asset may go undisclosed by a filer. These include:
- The filer lied about possessing the asset
- The filer transferred an asset to someone else’s name
- The filer created fake mortgages or liens to devalue their property
- The filer may have been careless in disclosing the asset
- The filer may have legitimately forgotten to include assets they may not
have thought of
Bankruptcy trustees are very keen detectives and are not often fooled by hidden assets.
All it takes is a public records review, a debt review, a review of bank
records or tax returns, or a look at online asset searches to determine
whether or not an asset has been hidden or transferred. If a filer is
found to have attempted to conceal assets, they face a number of repercussions.
Not only will their hidden assets not be eligible for discharge (meaning
they will still owe the debt they were trying to get rid of with bankruptcy),
but they may also get their discharge revoked. Worse still, they may face
criminal charges and penalties for perjury, which is punishable by up
to five years in prison and / or a fine of up to $500,000.
Sometimes, though, assets are not disclosed simply because a person made
a mistake without malicious intent. If this happens, the filer should
immediately disclose the asset to their trustee. As long as the mistake
was not made in an attempt to delay, hinder, or defraud creditors, the
error should not result in a denial of a discharge.
The following are examples of assets most commonly forgotten in bankruptcy
petitions:
- Retirement benefits
- Inheritances
- Lottery winnings
- Trusts
- Lawsuits
- Co-owned assets
Considering Bankruptcy? Work With an Attorney You Can Trust
If you are considering bankruptcy in the Dallas – Fort Worth area, please
get in touch with a Dallas bankruptcy attorney at Allmand Law Firm, PLLC.
Our team is prepared to assist you with your filing so that you can reach
a resolution as quickly and smoothly as possible. Get started with a FREE
financial empowerment session when you
contact us.
The post Why Hiding Assets Could Cost You appeared first on Allmand Law.
The two most common types of bankruptcy in California are Chapter 7 bankruptcy, a fast process that involves liquidation of property, and Chapter 13 bankruptcy, a longer procedure where debtors make monthly payments to keep their property while reducing or eliminating various debts. Chapter 13 bankruptcy can have negative short-term effects on your credit score, but for many Californians, the long-term benefits outweigh the initial credit score drop. Sacramento bankruptcy attorneys explain how much Chapter 13 bankruptcy affects your credit score, and how long Chapter13 bankruptcy stays on your credit report.
How Much Does Chapter 13 Lower Your Credit Score?
Your credit report is a collection of personal information and financial data about you. Your credit report displays a number called your “credit score,” which is calculated based on how often you made full and timely payments on your utility bills, student loans, car loans, or other payments. Other factors that impact your credit score include lawsuits, foreclosures, liens, and – as our Sacramento Chapter 13 attorneys will be discussing in this article – bankruptcy.
There are a few different systems for rating credit scores, such as the FICO score range scale and the VantageScore range scale. However, speaking generally, credit scores are divided into the following categories:
- Excellent – 720 or higher
- Good – 690-719
- Fair – 630-689
- Poor – 629 or lower
Lenders use your credit report and credit score to assess the risk of giving you a loan, which means your credit score affects the types of loans you can qualify for. The more payments you make in full and on time, the higher your credit score will be, and the easier it will be to obtain a loan with a competitive interest rate. On the other hand, a history of delinquent or partial payments will chip away at your credit score, making it harder to qualify for desirable loans.
Like a string of delinquent payments, a bankruptcy case will also have a negative effect on your credit score – at least in the short term. Depending on what your credit score was before you filed bankruptcy, your score might temporarily drop anywhere from about 130 to 240 points. Generally speaking, the higher your score was prior to bankruptcy, the more it will drop when you file Chapter 13 in Sacramento.
However, that does not necessarily mean all lenders will be unwilling to offer you a loan. Unlike Chapter 7 bankruptcy, which is meant for debtors who have limited financial resources, Chapter 13 is meant for high-income debtors who have the financial means to direct their disposable income into monthly payments for a period of up to five years. Because Chapter 13 requires commitment to a long-term repayment plan, lenders may look more favorably upon Chapter 13 debtors than Chapter 7 debtors.
How Long Does Chapter 13 Stay on Your Credit Report in California?
A Chapter 13 bankruptcy will remain on your credit report for seven years. The seven-year clock starts counting down from the date you file bankruptcy, not the date your case is discharged. This distinction is significant for Chapter 13 debtors, because Chapter 13 bankruptcy requires a period of either three or five years for discharge, depending on your financial circumstances and the structure of your “reorganization” (repayment) plan.
After seven years, the record of the bankruptcy should be removed automatically, without you needing to take any action. However, it is still a good idea to periodically check your credit report in case there are any mistakes or inaccuracies. Checking your credit report can also help you detect identity theft, and help you manage your finances more effectively. You are entitled by federal law to receive one free annual copy of your credit report from each of the three major credit reporting bureaus: Experian, TransUnion, and Equifax.
Chapter 7 bankruptcy takes longer to come off your credit report than Chapter 13, because unlike Chapter 13 debtors, Chapter 7 debtors are not required to make monthly payments. Chapter 7 bankruptcy will stay on your credit report for 10 years before it is removed. Nonetheless, there are many debtors who would benefit more from Chapter 7 than they would from Chapter 13. Our Sacramento Chapter 7 bankruptcy lawyers can help you determine which chapter of bankruptcy is right for you.
Sacramento Bankruptcy Lawyers Can Help
Filing bankruptcy in California will temporarily have a negative effect on your credit score. However, if you are considering bankruptcy, it is likely due to excessive debt, which means you likely have a low credit score already. By wiping out many of your debts, bankruptcy can free up your finances and give you a fresh start, which positions you to build better credit going forward.
To learn more about filing Chapter 13 or filing Chapter 7 in Sacramento, Roseville, Folsom, or the surrounding area, call the California bankruptcy attorneys of The Bankruptcy Group at (800) 920-5351 for a free bankruptcy consultation. Your information will be kept confidential.
The post How Does Chapter 13 Bankruptcy Affect Your Credit in California? appeared first on The Bankruptcy Group, P.C..
When any of Wynn at Law, LLC’s clients own real property in Wisconsin, we look at a Transfer on Death Deed (commonly called a TOD Deed or a TODD) to see if it is a suitable fit for their estate plan. It can sometimes wipe out the need to go to probate court, which is a time and cost saver.
If you have $50,000 or more in probate assets, probate court comes into play when distributing assets. Probate assets are all assets NOT automatically transferred to another person when the owner passes. Life insurance proceeds, for example, skip probate because a beneficiary is identified. So, if assets can avoid probate, why not place a TODD on an asset like a vacation home to transfer it directly to beneficiaries, such as the kids?
The answer in some cases is that if you need to protect assets – for or from your children – you might not want to transfer them on your death. For the minor kids, you might want to transfer the asset to a trustee for their benefit until they’re older. In the case of adult children who may have creditor problems or a looming divorce, you might again want a trustee instead of transferring the property to them directly. Otherwise, a TODD making assets ‘unprobatable’ is an alternative for every Wynn at Law, LLC client because the property doesn’t need to be owned free-and-clear. You can have a mortgage, a second mortgage, even a line of credit against the property and still use the TODD to pass it on… and skip probate.
Let’s say you had a car and some bank assets totaling $49,995 and a $89,000 getaway cabin up north. All in, the assets would require probate, but if a TODD was placed on the cabin, the cabin passes to your heirs (they still get the debt if it was mortgaged, by the way) and the rest of the estate would avoid probate because it’s under the $50,000 limit.
Your accountant, or your beneficiary’s, will point out that there may be tax benefits to this strategy as well, because the transfer isn’t considered a ‘gift’ subject to gift tax. The TODD may also reduce or eliminate capital gains taxes if and when the property is sold by the beneficiary.
Even if you have the Transfer on Death Deed, you can still choose to sell a property while you’re living: It’s yours! The TODD designation does not give the beneficiary ‘ownership’ of the property while you’re alive… if the document is drafted properly. Call an attorney.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Ekaterina Kondratova, used with permission.
The post Transfer on Death Deeds eliminate probate appeared first on Wynn at Law, LLC.
When any of Wynn at Law LLC’s clients own real property in Wisconsin, we look at a Transfer on Death Deed (commonly called a TOD Deed or a TODD) to see if it is a suitable fit for their estate plan. It can sometimes wipe out the need to go to probate court, which is a time and cost saver.
As our earlier article pointed out, if you have $50,000 or more in probate assets, probate court comes into play when distributing assets. Probate assets are all assets NOT automatically transferred to another person when the owner passes. Life insurance proceeds, for example, skip probate because a beneficiary is identified. So, if assets can avoid probate, why not place a TODD on an asset like a vacation home to transfer it directly to beneficiaries, such as the kids?
The answer in some cases is that if you need to protect assets – for or from your children – you might not want to transfer them on your death. For the minor kids, you might want to transfer the asset to a trustee for their benefit until they’re older. In the case of adult children who may have creditor problems or a looming divorce, you might again want a trustee instead of transferring the property to them directly. Otherwise, a TODD making assets ‘unprobatable’ is an alternative for every Wynn at Law LLC client because the property doesn’t need to be owned free-and-clear. You can have a mortgage, a second mortgage, even a line of credit against the property and still use the TODD to pass it on… and skip probate.
Let’s say you had a car and some bank assets totaling $49,995 and a $89,000 getaway cabin up north. All in, the assets would require probate, but if a TODD was placed on the cabin, the cabin passes to your heirs (they still get the debt if it was mortgaged, by the way) and the rest of the estate would avoid probate because it’s under the $50,000 limit.
Your accountant, or your beneficiary’s, will point out that there may be tax benefits to this strategy as well, because the transfer isn’t considered a ‘gift’ subject to gift tax. The TODD may also reduce or eliminate capital gains taxes if and when the property is sold by the beneficiary.
Even if you have the Transfer on Death Deed, you can still choose to sell a property while you’re living: It’s yours! The TODD designation does not give the beneficiary ‘ownership’ of the property while you’re alive… if the document is drafted properly. Call an attorney.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Ekaterina Kondratova, used with permission.
The post Transfer on Death Deeds eliminate probate appeared first on Wynn at Law, LLC.
When any of Wynn at Law LLC’s clients own real property in Wisconsin, we look at a Transfer on Death Deed (commonly called a TOD Deed or a TODD) to see if it is a suitable fit for their estate plan. It can sometimes wipe out the need to go to probate court, which is a time and cost saver.
As our earlier article pointed out, if you have $50,000 or more in probate assets, probate court comes into play when distributing assets. Probate assets are all assets NOT automatically transferred to another person when the owner passes. Life insurance proceeds, for example, skip probate because a beneficiary is identified. So, if assets can avoid probate, why not place a TODD on an asset like a vacation home to transfer it directly to beneficiaries, such as the kids?
The answer in some cases is that if you need to protect assets – for or from your children – you might not want to transfer them on your death. For the minor kids, you might want to transfer the asset to a trustee for their benefit until they’re older. In the case of adult children who may have creditor problems or a looming divorce, you might again want a trustee instead of transferring the property to them directly. Otherwise, a TODD making assets ‘unprobatable’ is an alternative for every Wynn at Law LLC client because the property doesn’t need to be owned free-and-clear. You can have a mortgage, a second mortgage, even a line of credit against the property and still use the TODD to pass it on… and skip probate.
Let’s say you had a car and some bank assets totaling $49,995 and a $89,000 getaway cabin up north. All in, the assets would require probate, but if a TODD was placed on the cabin, the cabin passes to your heirs (they still get the debt if it was mortgaged, by the way) and the rest of the estate would avoid probate because it’s under the $50,000 limit.
Your accountant, or your beneficiary’s, will point out that there may be tax benefits to this strategy as well, because the transfer isn’t considered a ‘gift’ subject to gift tax. The TODD may also reduce or eliminate capital gains taxes if and when the property is sold by the beneficiary.
Even if you have the Transfer on Death Deed, you can still choose to sell a property while you’re living: It’s yours! The TODD designation does not give the beneficiary ‘ownership’ of the property while you’re alive… if the document is drafted properly. Call an attorney.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Ekaterina Kondratova, used with permission.
The post Transfer on Death Deeds eliminate probate appeared first on Wynn at Law, LLC.
From Bloomberg: Student Loan Giant Faces Trial over US Claim it Duped Borrowers.
Lawsuits brought by Consumer Financial Protection Bureau and state attorneys general of Washington and Illinois allege that Navient mistreated hundreds of thousands of student debtors by taking shortcuts to minimize its own costs, while adding what the CFPB said was as much as $4 billion in interest charges to borrower loan balances.
Navient remains under investigation by other state authorities while it seeks to land a lucrative Trump administration contract to continue collecting payments from borrowers with federal student loans.
A CFPB analysis earlier this year found that Navient was the nation’s most-complained about financial company.
Navient illegally steered struggling borrowers facing long-term hardship into payment plans that temporarily postponed bills (while interest continued to accrue), the officials alleged, rather than helping them enroll in federal programs that cap payments relative to their earnings and offer the promise of loan forgiveness. Navient has denied the allegations.
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About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys. 
I would be flattered if you connected with me on GOOGLE+
*Important Note from Diane: Nothing on this website should be construed as establishing a lawyer-client relationship between you, me, the author of any page or the website owner (me) who happens to be a lawyer. Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article. You may pick up some information about bankruptcy, foreclosure or the practice of law written by myself or others. Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*
The post Did Navient Illegally Over-charge Student Loan Borrowers? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
From Bloomberg: Student Loan Giant Faces Trial over US Claim it Duped Borrowers.
Lawsuits brought by Consumer Financial Protection Bureau and state attorneys general of Washington and Illinois allege that Navient mistreated hundreds of thousands of student debtors by taking shortcuts to minimize its own costs, while adding what the CFPB said was as much as $4 billion in interest charges to borrower loan balances.
Navient remains under investigation by other state authorities while it seeks to land a lucrative Trump administration contract to continue collecting payments from borrowers with federal student loans.
A CFPB analysis earlier this year found that Navient was the nation’s most-complained about financial company.
Navient illegally steered struggling borrowers facing long-term hardship into payment plans that temporarily postponed bills (while interest continued to accrue), the officials alleged, rather than helping them enroll in federal programs that cap payments relative to their earnings and offer the promise of loan forgiveness. Navient has denied the allegations.
Share this entry
About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys. 
I would be flattered if you connected with me on GOOGLE+
*Important Note from Diane: Nothing on this website should be construed as establishing a lawyer-client relationship between you, me, the author of any page or the website owner (me) who happens to be a lawyer. Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article. You may pick up some information about bankruptcy, foreclosure or the practice of law written by myself or others. Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*
The post Did Navient Illegally Over-charge Student Loan Borrowers? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
Chapter 11 bankruptcy, also known as “reorganization bankruptcy,”
is a bankruptcy plan that allows corporations, partnerships and individuals
to reorganize their finances and restructure their debt. Unlike
Chapter 13 bankruptcy cases, Chapter 11 bankruptcy has no debt ceiling. This plan is popular
with both large and small businesses that need to restructure their debt.
The reorganization plan is an important part of a Chapter 11 filing. Generally,
a business that is filing for Chapter 11 bankruptcy does not have a restructuring
plan in place and continues to operate as a debtor until a plan is drafted.
Once the company has outlined their restructuring plan, the plan is presented
to the court where it will undergo an analysis before approval. The bankruptcy
court may require that some creditors be paid in full, while allowing
for a partial repayment on other debts.
What Should the Plan of Reorganization Include?
A Chapter 11 bankruptcy plan should be well-organized and straightforward.
Because the process can be complex and because your future financial health
depends on taking the right steps, a reorganization plan should be drafted
by a lawyer or someone with experience in
bankruptcy laws.
The following issues should be outlined in the reorganization plan:
- Identification of each debt and to whom it is owed
- A determination of which debts will be paid in full, and which debts will
be repaid in a percentage amount - Methods regarding how the debts will be paid, whether through the sale
of assets, or from future profits, etc. - Guidelines as to how the company will continue to operate while implementing
the new plan - Whether the execution and oversight of the reorganization plan will be
carried out by a designated committee
What Happens If the Reorganization Plan is Violated?
Until a business has a valid reorganization plan, they will not be allowed
by the courts to declare a Chapter 11 bankruptcy. However, once the reorganization
plan is drafted and approved by the bankruptcy court, it is effective
and legally binding. Violations of the reorganization plan, whether by
the debtor or the creditor, can lead to a variety of legal repercussions.
When the Debtor Violates
If a debtor violates the terms of the reorganization plan by not paying
the debts as agreed upon, the creditor may be permitted to secure a lien
on the business property or assets in order to satisfy the debt payments.
When the Creditor Violates
The creditor is also bound by the terms outlined in the reorganization
plan. If a creditor attempts to collect more than the what is required
by the agreement, the debtor can reference the bankruptcy reorganization
plan. The creditor is only entitled to the payment agreed upon, even if
the debt is to be paid in a percentage amount.
By the proper negotiation between the creditor and debtor parties during
the drafting of the reorganization plan, many lawsuits and legal disputes
can be avoided.
Where Can I Find Help With My Plan of Reorganization?
To avoid errors and misunderstandings that can slow the process of declaring
Chapter 11 bankruptcy and result in legal disputes, anyone considering
bankruptcy as a means of debt relief and reorganization should be intent
on working with proven lawyers like those at Allmand Law Firm, PLLC. Our
Dallas bankruptcy attorneys represent clients throughout the Dallas –
Fort Worth Metroplex, and are available to discuss your unique situation,
goals, and options during a FREE financial empowerment session.
Contact us today to request your consultation.
The post Understanding Your Plan of Reorganization for a Chapter 11 Bankruptcy appeared first on Allmand Law.
Contempt bankruptcy court order ends in prison time:
Contempt of bankruptcy court order results in prison time, plus $1,000 day fine.
In re Kenny G. Enterprises 16-55007 (9th Cir 7/26/2017) Kenneth Gharib refused to comply with a bankruptcy court order to turn over $1,420,000 belonging to a chapter 7 estate. The judge imposed sanctions for the contempt: civil contempt sanctions of $1,420,000, $1,000 a day until he complied, plus incarceration until he complied (that was May of 2015 and as of this writing he is still in prison). The District Court of California affirmed the order, except the $1,000 a day. The 9th Circuit reverses on the issue of daily sanctions, finding that such daily sanction is permitted if it is “properly coercive” to comply with the turnover order, but not if it becomes punitive.
In the face of a § 542 violation the bankruptcy court may invoke its contempt power under § 105, which allows the court to “issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title.” 11 U.S.C . § 105(a) Such sanctions include incarceration for more than two years
Contempt of bankruptcy court order results in unexpected consequences.
Trying to ignore or play games in bankruptcy will result in losing more than a home, business or money. It can result in losing your freedom by being sentenced to prison (not great on your resume’). So many people believe that filing for bankruptcy is like playing “hide and seek”. If you are really good at hiding you will win. Mr. Kenneth Gharib now knows better. He has been in prison for two years and counting.
Other articles/blogs:
- You cannot be arrested for not paying your creditor cards
- ou cannot be arrested for not paying your bills.
Share this entry
About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys.
I would be flattered if you connected with me on GOOGLE+
*Important Note from Diane: Nothing on this website should be construed as establishing a lawyer-client relationship between you, me, the author of any page or the website owner (me) who happens to be a lawyer. Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article. You may pick up some information about bankruptcy, foreclosure or the practice of law written by myself or others. Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*
The post Can You End up in Prison when Filing a Bankruptcy? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.