Questions tagged [bankruptcy]
Use this for questions about insolvent entities that are unable to repay their creditors, and the processes surrounding this.
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Priority of credit card debt in company liquidation
Juristdiction: USA. A small S corp is insolvent and being liquidated. Main bank account now has $0, say $2000 owed on corporate credit card account (for which I am the guarantor), $1000 in wages owed (...
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Such a thing as a bankrupt law
The early 20th century folk song "On the Trail of the Buffalo" tells the story of some cowboys employed by a drover to run buffalo. In Woody Guthrie's 1945 version (video / lyrics) we have ...
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Are customers of FTX.com liable for clawbacks, given that the contract states they own the assets on the platform?
FTX bankruptcy estate is preparing to file lawsuits on retail customers to claw back withdrawals made during the last days of FTX.
In fact, FTX has already filed one recently.
https://www.coindesk.com/...
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An insolvent company still operating
I have made an order online for a company early September, however found out the company filed for insolvency early August.
However they are still taking money from customers and never sending their ...
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In which state does a corporate firm file for bankruptcy?
Consider a corporate firm that is operating in Miami (e.g., leases office space, meet clients, do the actual work).
Suppose this firm's headquarter is in New York City.
But, it is incorporated in the ...
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Property ownership of liquidated company
Around a decade ago the company I was working for launched a new startup. It was owned by my company and I was tasked to work as a consultant helping them set up their IT infrastructure 50% of my time....
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11 U.S. Code § 1141 - Effect of confirmation discharge possibilities
the code states
(2)A discharge under this chapter does not discharge a debtor who is
an individual from any debt excepted from discharge under section 523
of this title. (3)The confirmation of a plan ...
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Are customers who withdraw their profits and lending earnings from FTX during its last days before its bankruptcy liable to clawback from creditors?
It seems that some companies and investors, such as Binance, are liable to pay creditors through clawback for FTX collapse as a result of fraud.
https://cointelegraph.com/news/companies-and-investors-...
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Is it possible to claw back assets multiple steps removed from a bankruptcy?
It has been in the news recently that Alex Jones has resorted to the tried and true strategy of having someone else hold his assets while he goes bankrupt. The problem with this strategy is that ...
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Interim Charging Order on Property was never changed to a Final Charging Order
If an Interim Charging Order on a property was never updated to a Final Charging Order can I get it removed? It has been over 13 years.
Edit to add more detail.
The creditor managed to sneak the ...
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Fraudulent bankruptcy by bad management?
Bob buys a successful company for a large amount of money, on loan from a Bank. Within a year, the company is bankrupt. Assume for the sake of the question that this is due to intentional or reckless ...
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If Twitter were to declare bankruptcy would Elon Musk retain control/ ownership afterwards?
If a company declares bankruptcy it doesn't necessarily cease operating, in the US it could continue operating under Chapter 11. Ownership would then go to the creditors of Twitter. But who are those?
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Are Recourse loans forgiven during bankruptcy?
Let's say you have a recourse loan on a commercial property, which as I understand it means that a creditor/bank can come after your other assets to make themselves whole if you were to default on ...
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Would a lifetime gym membership be subject to bankruptcy proceedings?
A person in the state of Washington purchases a gym membership that entitles them (and them alone) to visit the gym for the rest of their lifetime, in exchange for a single lump sum payment. A few ...
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How can I pursue a non-responsive company for tax docs and potentially money back?
In late 2021 I invested in a Qualified Opportunity Zone (QoZ) that closely aligned with my values. This year, I haven't heard from them for various requests of mine (typically before April 2022 and ...
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Are non debtors/third parties discharged or released with a chapter 11 bankruptcy?
I am doing some research on third party releases and I just want to get some clarification.
from this article: https://www.abi.org/abi-journal/requirements-for-the-approval-of-third-party-non-debtor-...
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Can a chapter 7 Bankruptcy trustee enforce a beneficial interest of a debtor to a trust the debtor is entitled to?
A trust has recently been created for my benefit and I am the sole beneficiary. I am in Atlanta, GA if this helps for reasons of practice or procedure. The trust is irrevocable and has provisions that ...
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Can strategic bankruptcy be used against investors?
Can bankruptcy be used as strategy to avoid paying back investors? Are there examples of such behavior?
What are the mechanisms in place in US law to prevent people from creating a company to attract ...
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How can a person declaring bankruptcy afford a lawyer?
In most jurisdictions, a person overwhelmed by debt can declare a personal bankruptcy (for example, filing for a Chapter 7 bankruptcy in the United States, or for a Verbraucherinsolvenz in Germany).
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Does the USA actually have debtors prison or jail after a court order?
Okay, I know officially the answer is "no, there is no such thing as debtors jail for civil debts in the USA", however let's explore this. Suppose a person is sued by a creditor for a debt. ...
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Can consumers use trusts to protect themselves from losing their deposit — if, after consumers pay deposit, a company goes bankrupt?
Many companies (call them D for Defendant) require monetary deposits from consumers (C for Claimants), before D undertakes time and effort to order the product. C is an unsecured creditor, and a ...
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Can an amended bankruptcy schedule be submitted before getting a case number, or is it better to wait?
I filed pro se recently (in the US), and I feel pretty good and confident about my petition. I did notice though I made a minor mistake on one page with some amounts—nothing major and it isn't a big ...
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Can charities function as a bankruptcy shield?
Take Bill Gates as a hypothetical example. He wants to avoid estate tax, bankruptcy or anything else taking his assets.
He created a charity and his children can run it and collect a salary. If the ...
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Can future debts be included in a bankruptcy petition?
I'm asking this question as a matter of law, not specific to any situation, and not as a request for advice.
Can debts that you know for sure will be incurred in the month after filing (examples may ...
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Do foreign debts require special treatment in a bankruptcy petition? [duplicate]
To be clear, I'm not asking for legal advice.
I have foreign debts, and I'm aware that while they cannot be discharged in the USA where I am filing, they still need to be declared.
My question is ...
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Can a debt discharged in a bankruptcy be assigned to a different person?
I'm in the USA. I took over an apartment lease from someone for the last 4 months of the lease, which ended in May. I've been remaining in the apartment, and have had trouble paying rent.
I am now ...
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Is there any limit on how much bonuses can be given before filing for bankruptcy in the United States?
I read on https://www.cnn.com/2020/05/26/investing/hertz-bankruptcy-executive-bonuses/index.html (mirror):
Hertz paid out millions of dollars in bonuses to its executives just before its bankruptcy --...
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Does Unsecured Debt Have Implicit Collateral?
I am thinking of a simple case.
For example, suppose I bought a home, but there is a mortgage where the contract stipulates that if I default, the bank can seize up to 95% of the home value. This 95% ...
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What happens if the debtor in a bankruptcy proceeding cannot afford to stay in bankruptcy?
Imagine a U.S. debtor in Chapter 11 bankruptcy, operating as a "debtor in possession". At the beginning of the case they have $10 million in the bank.
During the case, they have to pay their ...
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When filing for bankruptcy, is everything filed publicly accessible via PACER?
I know bankruptcies are public records, but does that mean everything you file is public? Every debt, even personal ones? Every domain name which would otherwise be protected by registrar privacy? I ...
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How to obtain Contact info for a business that declared bankruptcy?
Suppose a person made a batch of beer at a small brewery chain here in Boston and was scheduled to pick it up, when they find out the brewery has closed due to bankruptcy.
The person wants to file a ...
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Does all public assistance need to be listed as income when filing for bankruptcy?
Asking with respect to the USA. I'm currently homeless and on food stamps and public assistance. I've googled and it's stated everywhere that foodstamps and public assistance cash need to be listed as ...
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Do domains typically have to be declared in bankruptcy proceedings?
I've been trying to research this, and so far all I've found is a lot of academic legal essays concluding the law hasn't really caught up to the technology.
Do domains typically need to be declared ...
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Do licenses created by a company dissolve, void, or simply invalidate if said company bankrupts / sells assets?
So I made a previous question about a dissolved or possibly bankrupted company that I wanted to use assets of for a fan-made remaster / remake of their game.
The said company has given access to their ...
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If a company silently shuts down, what happens to their assets and legal status? [duplicate]
Edit: By assets, I mean actual game assets, like art and music, not legal assets
I’m working on a fan game / remaster of a dead game called “Deepworld” that was developed by a... well... also dead ...
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How do possible future court cases affect a bankruptcy application or judgement?
Asking with regard to the USA.
I have court cases I have been considering filing, suing specific people or organizations for damages. I've been advised that I don't have a lot of ground to sue and ...
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What happens if a creditor can't make it to the creditors meeting for bankruptcy?
I am in the US, and have some foreign debts I will be declaring in my bankruptcy application, as well as some US debts where the people have since moved overseas.
It's unlikely anyone living overseas ...
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I sued a corporation that declared bankruptcy, but it got acquired. Can I claim from acquiring corporation?
I hope you're safe and good in pandemic.
In Dec. 2019, I filed claim online with Ontario Small Claims Court against Barrymore Furniture Co. Ltd. for $7000. Just ask if you want me to summarize ...
user89
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Bankruptcy Chapter 8
Why there is no chapter 8 bankruptcy?
I am a novice in law with no background in legal studies, but in business news, companies file for chapter 7 or chapter 11 bankruptcy. I am wondering what are ...
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For bankruptcy, are your finances taken into account at the time of filing, or at the time of the 341 meeting several months later?
Pretty much just the title. Just wondering if finances taken into account are at the time of filing or at the time of the 341 creditors meeting?
Asking as a matter of law - what does the law say?
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Is it correct that foreign debts declared in a US bankruptcy are still enforceable in their country of origin, but can't be collected in the US?
I know that all debts, including foreign debts, have to be declared when filing for bankruptcy in the US.
I am wondering what effect this has on foreign debts. My thinking is that it doesn't 'cancel' ...
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Appraisal Rights in Chapter 11?
Assuming some number of shareholders believe that the bankruptcy process is inadequately compensating them (i.e. by setting the company valuation too low and thus giving creditors too much equity in a ...
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Refused Financing for new car loan due to charge off from bankruptcy 11 years ago
State of Michigan
My wife filed for chapter 7 bankruptcy 10 yrs ago and one of the debts was with Ford Motor Credit.
She has good Credit now and I have okay credit. We wanted to purchase a Ford ...
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What happens to debt during a Ch 11 bankruptcy?
Reading newspapers, it seems as if a Ch 11 bankruptcy is like being reborn: you shed off all debts to emerge a pristine new company. But why would debtors agree to this? Aren't they better off with a ...
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How does Equity get lost long before a bankruptcy case is filed?
How's Judge David Jones correct? On May 26 2020, Hertz announced bankruptcy and its price dropped even more, from $2.83 to 0.59.
Retail Traders Flout Legal Logic by Buying Up Bankrupt Stocks
“No ...
user89
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Not getting paid for work done?
I worked in Colorado, USA for a startup.
On a Monday morning we were informed that our investor decided not to continue investing in our company and so our payroll from that last Friday was paid for/...
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Does fraudulent conveyance only apply to bankruptcy?
Say creditor has a judgement and before the judgment I transferred assets to someone else. Can the creditor go after the fraudulently conveyed assets? Or is that only for bankruptcy?
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Which state's statue of limitations for debts applies, for credit card debt?
I used to live in South Carolina, USA and lost my job. As a result I defaulted on credit card debt. I have not paid anything on it for the last year and the debts were "Charged Off", and are in ...
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Law firm gave credit to incorporate but business never got off the ground are we liable for debts?
Our firm never went into business and made no revenues in the tax year 2017. The business was given credit by a law firm for simple services like incorporation. If the firm has 34,000 in debt that is ...
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What happens to loans issued by a startup if the startup fails?
I live in the U.S. Suppose that I invest $50,000 in a startup company, signing "typical" paperwork for a 55% stake. The founder then uses the money to issue a $20,000 loan at a minimal interest rate ...
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