Many people wonder what happens with their gift cards when a company files bankruptcy. When a company files chapter 7, they intend to close and liquidate their assests to pay off their debtors. In these cases, it is unlikely that the gift cards will be redeemable. However, when a company enters into a Chapter 11, […]
The answer to this question is almost certainly yes, you can and should take these steps to protect your mortgage investment. Almost every standard loan document provides that the secured creditor can protect their collateral by securing it against the elements and against theft or vandalism or to deal with other common problems like frozen […]
The answer to this question is yes, provided that the creditor actually shipped the goods within 20 days before the bankruptcy was filed. When a debtor receives goods while insolvent, the creditor has what’s called the right of R\reclamation to recover the property or its value from the debtor. In the bankruptcy code, that right […]
In modern commercial practice, many entities are limited liability companies. These are entities that have some of the qualifications of a corporation and some characteristics of a partnership, but in Maryland at least if a person gets a judgment against someone that’s a member of a limited liability company, that person can’t just seize that […]
Information about a debtor is available from many different sources. Many states now have all lawsuits, business history and propery ownership records available online. The debtor itself is required to file Schedules and Statement of Financial Affairs at the beginning of a bankruptcy case. These are documents signed under oath that contain important information about […]
An involuntary bankruptcy occurs when three or more creditors join together to force a debtor into bankruptcy court jurisdiction. These involuntary petitions usually occur when the debtor has acted in a way that causes creditors concern that the debtor’s assets and value are rapidly depreciation, or has recently dropped. This may happen when, for example, […]
When banks make loans that are secured by property sometimes the loans default and the bank needs to sell that property to pay down the loan. When the property is real estate those sales are typically by public auction, whether by a private auctioneer or the sheriff. Buyers who are interested in obtaining properties at […]
Generally, the more creditors you owe the more likely you will need to use bankruptcy for relief. The reason for this is that despite your best efforts to resolve delinquencies with all of your creditors any one creditor can be a “spoiler” that could ruin your settlement efforts. Frequently, however, especially in commercial settings, debtors […]
