When a corporate entity files for Chapter 7 bankruptcy and the assets are liquidated in its entirety, there is an order of priority in which creditors and third parties will have the right to their claim. Creditors with Secured Debt If the creditors are owed secured debt, that is, debt that is secured by assets …Read more

Most types of debt can be discharged in bankruptcy but some types of debt cannot, for example, tax debt, student loans, child support and debt incurred through fraud. Tax Debt Most tax debt incurred within three years of the Bankruptcy filing will not be discharged, nor will taxes owed for payroll taxes or other forms …Read more

Generally, if a publicly traded company files for bankruptcy, the Securities and Exchange Commission (SEC) will become more involved in the process. As a general matter, few public companies file Chapter 7 but may file for a reorganization. However, the SEC imposes additional reporting requirements as opposed to a privately held company. If the public …Read more

In order to effectively determine what the appropriate bankruptcy avenue should be for a given individual or entity, multiple steps should be considered. Where did the debt come from? The first question is to determine what caused the individual or corporation to accumulate the amount of debt owed. For example, an entity may have a …Read more

In the case of the bankruptcy of my business and the payment of creditors, is it better to liquidate the assets or default on creditor lawsuits? If given the choice, it is preferable to liquidate the assets yourself if you maintain control of them. Often, debtors may ask the bank to liquidate the assets which …Read more

The main difference between Chapter 11 and Chapter 13 is that a Chapter 13 bankruptcy requires that the debtor pay his or her debts within five years. On the other hand, Chapter 11 allows the filer to extend the five-year period unlike Chapter 13. Another difference is how much the Debtor has to pay creditors. …Read more

There are several types of bankruptcies available to businesses (and individuals) depending on the circumstances and goals of the company’s owners. Chapter 13 Bankruptcies One of the most common types of bankruptcy is Chapter 13. Chapter 13 applies to individuals and sole proprietorships and is generally designed to adjust debt for individuals who also have …Read more