On October 28, 2010, Banning Lewis Ranch Co. LLC and Banning Lewis Ranch Development I & II, LLC (collectively, “Banning”), filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware. A copy of one of the Banning bankruptcy petition is available here for review. Banning owns over 21,000 acres of land situated on the east side of Colorado Springs, Colorado. According to Banning’s List of Unsecured Creditors, the company’s three largest debts are for loans in excess of $170 million (combined).
According to reports by the Colorado Springs Gazette, there are currently 200 families living in the Banning community. In Banning’s Resolutions authorizing the company to file for bankruptcy, Banning states that its bankruptcy was the result of “uncertain economic and financial conditions generally.”
The Banning bankruptcy is before the Honorable Kevin J. Carey, Chief Judge of the Delaware Bankruptcy Court. Banning’s bankruptcy counsel in this proceeding is Cross and Simon LLC.
Bankruptcy, Lewis Ranch, Lewis Ranch Development, Ranch Development
One of the leading causes of financial distress is that caused by identity theft. This is a growing problem around the world and we are not immune from here. Fraudsters are finding it easier every day to obtain the personal information required to open bank and credit accounts. In most cases, the person that owns that ID is put through a traumatic period as they try to disprove these debts.
There are three components to identity theft. Deterring, Detecting and Defending (which may involve seeking relief through bankruptcy). If you can be successful with the first component, the chances are you won’t need the second two. Let’s look at how you can deter identity theft.
Deterring Identity Theft
There are so many different ways that fraudsters can obtain information about you that it’s almost impossible to cover them all. What is important is that you reveal as little about yourself to strangers as possible. Here are a few areas that require particular attention:
Lock your mail box – mail boxes are one of the easiest to target. A simple
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Identity Theft, Theft
A new report may suggest a growing confusion among consumers over their credit scores. The CNN Money report said the difference in credit score perception is a result of competing scoring models, which operate on different numerical scales.
A FICO score operates on a 300-to-850-point scale.
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Score, Score Vs
While a lot of attention in being placed on individuals and their financial problems, small businesses are also struggling. When a small business reaches a stage where mounting debt is making the business unviable, filing a petition for bankruptcy may appear as the only solution. For many businesses, the problem is in deciding which Chapter is right for them.
Small businesses can petition for bankruptcy using one of three Chapters depending on the structure of the business. The Chapters you can consider are:
Chapter 7 – all businesses can file for Chapter 7 bankruptcy if the debts far outweigh the assets and there is no future for the business. Under Chapter 7, the business is wound up, the assets sold, and the proceeds distributed amongst the creditors. Sole traders are treated as individuals in this process and, once completed, are discharged. Partnerships and corporations are not discharged; they are generally dissolved.
Chapter 11 – as with the Chapter 7, all business models can file for bankruptcy under a Chapter 11. This allows a business to restructure and attempt to trade their way out of trouble. A repayment plan is established (that can last up to 20 years) and the creditors paid off as the business continues to trade. Generally speaking, unless there is a real change in business fortunes, a Chapter 11 will fail and need to revert to a Chapter 7.
Chapter 13 - a Chapter 13 petition for bankruptcy can only be filed by consumers or, in the case of small businesses, by a sole trader. Like the Chapter 11, the process involves setting a repayment plan before the court that demonstrates the business’s ability to repay creditors over a period of time, normally three to five years. Chapter 13 filings for small businesses are treated in exactly the same manner as they are for individuals.
Bankruptcy is a serious issue for small businesses, and comes with a lot of legal complexities, especially if employees are involved. You should really seek the advice of a bankruptcy attorney before commencing any action. They will be able to advise which Chapter is most suited to your circumstances.
Business, Small Business
When agreeing to auto loans, the applicants are also agreeing to the fact that they are going to pay back the monthly installments on time for the rest of the loan term, which can be anything between three to seven years. This sounds good in writing but one can never imagine what kind of problems and pitfalls that one gets to experience when they have to take one payment a time. There can be number of times when the payment might seem impossible to pay and these circumstances usually result in defaults and repossessions. However, instead of going for such dire circumstances, the applicant can request for modification.
Modification on auto loans means that the applicant can ask for a change in the terms of the loan to make it more comfortable for him/her. But, one might think why a lender would be comfortable with changing the terms of the borrower’s loan. The reason is that it is quite difficult to get borrowers who make their payments on time and if there are things which can be done to ensure that the payments continue, then that would be done by the lender. N
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Auto Loans, Loans
Introduction
Earlier this month, the Chapter 7 Trustee (the “Trustee”) in the Consolidated Bedding bankruptcy commenced several avoidance actions under sections 547 and 548 of the Bankruptcy Code. Consolidated commenced this bankruptcy proceeding on May 29, 2009, when it filed petitions for bankruptcy under Chapter 7 of the Bankruptcy Code. Consolidated manufactured and sold mattresses under the trade name “Spring Air.” According to documents filed with the Delaware Bankruptcy Court, Consolidated ceased operations and terminated its employees prior to filing for bankruptcy.
Events Leading to Bankruptcy
On May 13, 2009 (two weeks before filing for bankruptcy), certain lenders of Consolidated sent notices of default under the company’s loan agreement. Soon after, the lenders accelerated Consolidated’s loan obligations and demanded repayment. Approximately two weeks after sending the notice of default, Consolidated and its lender entered into a foreclosure agreement whereby the company agreed to sell substantially all of its assets to Spring Air International LLC. After the sale to Spring Air International, Consolidated filed for bankrupty and the Trustee was appointed.
The Avoidance Actions
As of the date of this post, the Trustee has filed over 80 avoidance actions against various defendants. These adversary actions, as well as the main case, are before the Honorable Brendan L. Shannon.
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Actions, Consolidated Bedding