Bankruptcy
What does a Trustee do in a Chapter 7 Bankruptcy Case?
Upon filing a Chapter 7 bankruptcy case, all of the property which is owned by the Debtor filing the case is placed in to the bankruptcy estate. That estate is, during the course of the case, placed under the control of the Trustee. The bankruptcy court appoints a trustee in Chapter 7 cases to oversee…
Read MoreWhat happens to my property when I file for Chapter 7 Bankruptcy?
In a previous blog post, the automatic stay feature of Chapter 7 bankruptcy is discussed. This provides the Debtor who files the Chapter 7 bankruptcy case to immediately enjoy protection from the bankruptcy court to the extent that creditors are enjoined from taking collection measures against the Debtor on their claims while the bankruptcy case…
Read MoreWhat is an Automatic Stay in Chapter 7 Bankruptcy?
It is difficult to find any other type of court action a person or entity can file in an American court which has the kind of effect the automatic stay has in bankruptcy cases, including Chapter 7 actions. This feature of Chapter 7 cases makes the idea of filing such a case particularly attractive. What…
Read MoreHow do I know if I am eligible to file for Chapter 7 Bankruptcy?
Not everyone who finds themselves in a condition of financial distress can necessarily file a Chapter 7 bankruptcy case. Regular wage-earners who clearly want to stay in the home they own may be better suited for Chapter 13 and consider that option. For other individuals they should determine if they meet the eligibility requirements for…
Read MoreWhat happens during a Chapter 7 Bankruptcy Case?
The decision to file for bankruptcy protection under Chapter 7 is a serious one which should only be made after serious consideration and thought as well as consultation with a local bankruptcy attorney. Once a person concludes that Chapter 7 bankruptcy will offer the chance to get a fresh start financially, the next step is…
Read MoreBank of America Seeks Review of Eleventh Circuit Precedent on Second Mortgages
The Supreme Court plans to hear two cases brought by Bank of America concerning liens created by second mortgages where the value of the home is less than the amount of the lien from the first mortgage. In one federal appellate circuit, the Eleventh which takes appeals from certain southeastern states, the Court of Appeals…
Read MoreRationale for Distinctions in How Chapter 13 Wage-earner Bankruptcies and Chapter 11 Corporate Reorganizations Progress
It has just been announced that the company, Digital Domain Media Group (“Digital Domain”), won approval as a bankruptcy debtor for post-petition financing in its Chapter 11 corporate reorganization. As is the case for many companies undergoing reorganization via the Chapter 11 bankruptcy process, Digital Domain does not merely want to utilize the bankruptcy process…
Read MoreFeeling the Heat after Bankruptcy Discharge
Most individuals who file for bankruptcy, particularly a Chapter 7 or Chapter 13 action, do so to get a fresh start. When debts are discharged via the bankruptcy, creditors’ rights to collect those debts are severely limited, if not rendered void. However, according to findings reported in the New York Times, several large banks may not…
Read MoreGetting Past the Automatic Stay in Bankruptcy
One of the most important features of the bankruptcy process is the automatic stay, which stops those from collecting debts from the party filing for bankruptcy protection. Specifically, under 11 U.S. Code § 362, the filing of a bankruptcy petition operates as a stay of: (1)… a judicial, administrative, or other action or proceeding against…
Read MoreExemptions Available to Chapter 7 Debtors in Bankruptcy Cases
Previously we discussed in a recent blog post the use of the homestead exemption by Debtors in Chapter 7 bankruptcy cases to protect the equity they have in their home. This particular exemption is but one of several which the State of New Mexico allows Debtors in this state to claim when filing for bankruptcy…
Read More