The unsecured creditors committee plays an important role in chapter 11 bankruptcy
How can thousands of creditors negotiate with a business that has declared chapter 11 bankruptcy?
They can’t. Chapter 11 bankruptcy cases often involve situations where the business that has declared bankruptcy has hundreds or even thousands of creditors. Clearly, the entire flock of creditors cannot efficiently pursue the debtor in Bankruptcy Court at the same time. Chapter 11 bankruptcy is designed to restructure businesses that have become bogged down by excessive debt; thousands of negotiations with creditors simultaneously would frustrate the rehabilitation of the bankrupt business which usually continues to operate while in bankruptcy.
Forming the Unsecured Creditors Committee
As a result, section 1102 of the Bankruptcy Code authorizes the U.S. T
Read more…
11 Bankruptcy, Chapter 11 Bankruptcy, Committee, Creditors Committee
Over the past decade, credit fraud has become more common, due to recent advances in technology that have made it easier than ever for Americans to make credit card purchases while on the go. However, there are still a few ways that consumers can shop online through a mobile device and while ensuring that their credit reports are protected against unauthorized spending sprees.
The simple fact is, if you go e-shopping using a Wi-Fi connection, Im not going to say youre going to get ripped off every time, but the chances of someone seeing what you are doing and walking away with your number are exponentially higher, David Lazarus, a consumer columnist for the Los Angeles Times, told American Public Media.
Major financial institutions have now begun to offer virtual credit cards, which work by creating a separate number with the full backing of a traditional credit card, American Public Media reports.
Read more…
Credit, Credit Reports
Filing for bankruptcy as a business can be a costly process. It is not uncommon for a Chapter 11 bankruptcy petition to reach costs of $50,000 or more – the filing fee is almost $1,000 on its own. You can, however, reduce these costs if you avoid some of the biggest mistakes made by businesses, especially small business. Here are the top five mistakes made under a Chapter 11 petition.
1 – Not being realistic – A Chapter 11 petition is designed to allow a business to restructure and trade their way out of debt. Sometimes, no matter how much you restructure, some businesses are doomed. Planning a restructure can be costly so if creditors reject your plans, that cost has been a waste. Be realistic – if the business has little chance of success, then cut your losses and opt for a Chapter 7 petition instead.
2 – Include all your debts – The single biggest mistake made by small businesses is the failure to include all debts in their petition. The law makes it mandatory to include all debts no matter how big or small. Creditors w
Read more…
11 Bankruptcy, Bankruptcy, Chapter 11, Chapter 11 Bankruptcy
Can I gamble money right before bankruptcy?
Gamble Away Money Before Bankruptcy?
It is not illegal to gamble. You are certainly within your rights to gamble. However, we have been involved in a few cases in which the issue of funds gambled away immediately before filing for bankruptcy has been brought up. Can you lose otherwise non-exempt funds gambling and then file for bankruptcy right after?
Can You Prove Your Gambling Losses?
First, it is often difficult to show a receipt for a gambling loss, and you may need to prove that the money was actually gambled away, and not just hidden under your mattress. An additional objection by the trustee in your case may be that you have intentionally wasted assets. If the Trustee can prove that you wasted assets intentionally, this can be considered by the Court as a basis for denying a discharge. W
Read more…
Away Money, Bankruptcy, Gamble Away, Gamble Away Money
A trust is a legal agreement that allows a person (the trustee) to control certain assets that have been listed in the agreement. For a trust to be legitimate, it must have four parts. First is the grantor. This is the person who creates the trust. Usually it’s the person who currently owns the assets being transferred to the trust. Second, the trust contains assets or property. Finally, the beneficiary or beneficiaries are the people who benefit from the trust. Beneficiaries get payments from the trust.
When property is held in trust, the trust agreement specifies what happens to the property when the grantor dies, or even if the grantor becomes incapable. These actions happen automatically without having to go through the court system. Beneficiaries don’t have to bear the burden of court expenses tied with probate.
There are two major types of trusts – revocable and irrevocable trust. A revocable trust, also known as a revocable living trust or simply living trust, is in place as long as the grantor is still living. Read more…
TGIF!!! Before you head out to enjoy your 3-day weekend, be sure to check out this weeks blog picks featuring ways to save money on travel, rent and even a new baby! Enjoy
College Money Mag Best Spring Break Travel Deals
Fiscal Fizzle Top 10 Tips for Saving Money on a New Baby
Frugal Traveler How to Be a Frugal Traveler
The Smarter Wallet Save On Rent: Tips To Share An Apartment With A Roommate
Blog Picks, Picks