Bankruptcy
Brookstone in Bankruptcy Granted Financing as it Pursues Sale
Few nationally-known chains have attracted lovers of sleek gadgets like Brookstone. From massage chairs to modern electronic devices, shoppers at malls could always find reasons to fritter away idle moments perusing and, in some cases, using their merchandise in its stores. Unfortunately for Brookstone, Inc. downward sales figures necessitated it file Chapter 11 bankruptcy.…
Read MoreAccurate Disclosure of Financial Condition Vital in Bankruptcy Cases
When a person (the debtor) files for bankruptcy protection, one of the critical aspects to obtaining relief is the debtor’s accurate disclosure of his or her finances. In order for a federal bankruptcy court to properly handle any case, whether it is a Chapter 7, Chapter 12, Chapter 13 or Chapter 11 case, the court…
Read MoreCity of Detroit Submits Plan of Adjustment in Bankruptcy Case
The City of Detroit, the largest municipality in the country to avail itself of bankruptcy protection, submitted its Plan of Adjustment to the federal bankruptcy court handling its case. This plan represents the blueprint for how the city seeks to pay its creditors and raise funds to pay for ongoing services and municipal investments as…
Read MoreBankruptcy Trustee Gets Green Light to Pursue Pension to Recover Fraudulent Transfers
When an individual or company files for bankruptcy protection, a duly-authorized trustee takes control of the estate. So long as the bankruptcy action continues, the trustee on the case has the standing to seek to recover any assets or funds he or she believes to be part of the estate. Last year the federal bankruptcy…
Read MoreBankruptcy Trustee Loses in Bid to Recover for Estate Transferred by Debtor
In any bankruptcy action, the trustee has the capacity to recover any funds which he or she believes was improperly transferred or paid from the debtor’s estate prior to the bankruptcy filing. The law gives the trustee this power to ensure either that individuals close to the debtor do not take advantage of the debtor…
Read MoreFDIC brings tort action against former officers of New Mexico bank
When a bank goes into receivership, bank executives should not assume that any losses the bank itself — or its shareholders — sustains will be the sole losses. The Federal Deposit Insurance Corporation (FDIC), acting as the receiver of the First Community Bank, sued former officers of the Bank for close to $15 million in…
Read MoreNew Mexico Homeowners Win Partial Victory against Wells Fargo
The U.S .Ninth Circuit Court of Appeals which rules on federal cases originating from several western states issued a decision earlier this year which gave two New Mexico homeowners a continued opportunity to prevail in a suit against Wells Fargo bank. The plaintiffs in the case of Schlegel v. Wells Fargo Bank[1] procured a loan…
Read MoreMalice in Family Dispute Limits Discharge in Bankruptcy Case
The primary reason most individuals or companies seek bankruptcy protection is to rid themselves of debts which pose too great a burden on the debtor rendering the debtor unable to meet financial obligations. Debtors ask bankruptcy courts to discharge certain specific debts so that they no longer are legally required to pay such debts. A…
Read MoreChapter 13’s benefits over Chapter 7
In the last several years, many New Mexico residents, have considered whether filing for bankruptcy makes sense because they have lost their jobs, incurred extremely high medical bills or faced home foreclosures. Although many people have a general idea about bankruptcy, they do not necessarily have a deep understanding of the process. For the…
Read MoreMunicipal and Business Bankruptcies Similar in Some Respects
On October 28, 2013, a federal judge in Michigan heard arguments from creditor groups that the bankruptcy for the City of Detroit should be dismissed because the constitution for the State of Michigan prohibits a bankruptcy court from modifying benefit payments for pension holders and retirees. The case puts general bankruptcy rules against a special…
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