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Seeing Daylight Through the Eyes of Bankruptcy Laws
from: Deb St. George - HomelessInKingCounty.comBankruptcy laws are very clear about when you can and cannot file bankruptcy. Because of so much misuse of the bankruptcy proceedings in the past, the laws were revised in 2007. In effect the new law made it more difficult to file a chapter 7 than in the past, but once qualified, you no longer have to lose absolutely everything. The law recognizes that people in a severe debt situation need to start with a clean and manageable slate. Losing your home and the car you use to drive to work can only make the situation worse.
As a result the bankruptcy laws now allow people to keep their home and primary cars in many situations. The personal bankruptcy laws are defined under chapter 7 or chapter 13 while businesses can file a chapter 11. The laws vary, of course, depending on which type of bankruptcy applies to your situation.
When you file a bankruptcy it is almost as if a magician performed magic. The credit calls will stop and any financial collection activities are suspended by law. The mortgage company stops threatening foreclosure on your house and the credit card collection companies stop contacting you almost immediately. Even if you do get something in the mail or a phone call, all you have to do is notify your attorney who will make sure the law is followed. You will experience almost immediate relief because now your bank account or other benefits you may be receiving are not under threat of unannounced seizure.
The new bankruptcy laws require that you go through credit counseling which can be done online if you prefer. For a small fee you go through a process which analyzes your current financial status and works through a budget plan that you can follow in order to recover from the bankruptcy as quickly as possible. You also want to learn all you can to avoid having this situation ever happen again.
Bankruptcy laws provide clear rules about which assets you must list and how to value those assets. The value in some cases is replacement value which is normally retail value. You must past a “Means Test” before you are allowed to file for bankruptcy. The “Means Test” determines your true financial status and whether you can pay any of your debt. It then indicates which chapter you qualify under for filing purposes if you meet the Means Test minimum standards.
Bankruptcy laws cover a number of situations. The laws define exempt property, eligible debts that can be included in the bankruptcy filings, payment of creditors, liquidation of assets and a number of other topics. Because of the many bankruptcy law interpretations that must be made throughout the process, it is recommended that you use an attorney if at all possible. The attorney will insure you meet the requirements of the law and that you also get the greatest relief permissible.
Filing bankruptcy is a serious business that should only be undertaken when there seems to be no other options. Though the new laws are tougher than the older laws, the fact is that they do not hinder legitimate consumers and businesses from getting the relief they need.
Chapter Bankruptcy News
Houghton Mifflin files Chapter 11 bankruptcy
(Reuters) - Houghton Mifflin Harcourt Publishers Inc filed for bankruptcy protection on Monday after the textbook publisher reached agreement with a majority of its creditors to cut about $3.1 billion of debt. The Boston-based company and two dozen affiliates filed for Chapter 11 protection in U.S. bankruptcy court in Manhattan. It said it had more than $1 billion in both assets and liabilities ...
Read more...Textbook company Houghton Mifflin files Chapter 11 bankruptcy
Houghton Mifflin Harcourt Publishers Inc filed for Chapter 11 bankruptcy protection on Monday after the struggling textbook publisher agreed with its creditors to eliminate about US$3.1-billion of debt
Read more...Alex Hotel, Flatotel Owners File for Chapter 11 Bankruptcy
205 East 45 LLC, the owner of east midtown Manhattan- located Alex Hotel, has $123 million in outstanding liabilities with the lenders group, according to a filing today in U.S. Bankruptcy Court in Manhattan.
Read more...Houghton Mifflin Harcourt Publishers Files Chapter 11 Bankruptcy
* Textbook publisher hurt by government cutbacks * Bank lenders, bondholders would gain control * Paulson took stake By Jonathan Stempel May 21 (Reuters) - Houghton Mifflin Harcourt Publishers Inc, whose textbooks have been a staple in American schoolhouses for decades, filed for Chapter 11 bankruptcy protection on Monday after agreeing with creditors to eliminate $3.1 billion of debt.
Read more...Houghton Mifflin files for bankruptcy protection
Houghton Mifflin Harcourt Publishers Inc. has filed for Chapter 11 bankruptcy protection after reaching an agreement to eliminate $3.1 billion of its debt.
Read more...Contour Med Files Chapter 11 Bankruptcy
Contour Med Inc. of Little Rock filed for chapter 11 bankruptcy reorganization on May 11 and needed an emergency loan of $40,000 just to keep its doors open.
Read more...Houghton Mifflin Harcourt files for Chapter 11 bankruptcy
Houghton Mifflin Harcourt officially filed for bankruptcy this morning, according to Publishers Weekly. The book publisher, which has been struggling
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