Questions tagged [bankruptcy]
Use this for questions about insolvent entities that are unable to repay their creditors, and the processes surrounding this.
72
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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% ...
3
votes
1answer
45 views
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 ...
2
votes
1answer
49 views
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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vote
2answers
75 views
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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vote
0answers
17 views
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 ...
4
votes
1answer
77 views
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 ...
0
votes
2answers
57 views
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 ...
0
votes
1answer
30 views
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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0answers
37 views
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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votes
1answer
55 views
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 ...
2
votes
1answer
97 views
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 ...
1
vote
1answer
37 views
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 ...
1
vote
1answer
60 views
For bankruptcy, are your finances take 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 creditors meeting?
Asking as a matter of law - what does the law say?
3
votes
2answers
152 views
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' ...
1
vote
1answer
41 views
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 ...
2
votes
2answers
149 views
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 ...
0
votes
1answer
71 views
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 ...
0
votes
1answer
62 views
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 ...
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0answers
33 views
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 ...
1
vote
1answer
96 views
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/...
2
votes
1answer
58 views
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?
3
votes
2answers
98 views
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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1answer
56 views
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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vote
2answers
177 views
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 ...
20
votes
2answers
9k views
How can a different company make a sequel if the original game company goes bankrupt?
Say a game company goes bankrupt but another company wants to make a sequel. Is it possible for the other company to obtain rights to make a sequel?
Who would they even contact about this?
0
votes
1answer
65 views
Would a Notice of Entry of Appearance be required in federal bankruptcy case going pro se?
Let's say someone were to initiate a Chapter 13 bankruptcy in federal court of course. And they had an attorney prepare the filing and take the case through confirmation.
But a while later, the ...
3
votes
1answer
133 views
how can a creditor prepare for someone's bankruptcy?
My brother's lawyer has recommended he file for bankruptcy, and he owes me a considerable amount of money. I wanted to know what steps I can take now to protect my interests.
The majority of the ...
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vote
1answer
572 views
Example of True Lease v. Lease intended as Security
In Chapter 11, in the case of True Lease, lessee can assume the lease and continue to make payments or reject the lease and return the asset.
In the case of Lease intended as security, lease is re-...
0
votes
1answer
90 views
Fraud if a director lies about being unable to pay
Context: Canadian Law; contractor; fraud
Would it be considered fraudulence on behalf of the director (specifically CEO) of a company if they were to lie about being unable to pay a contractor, but ...
5
votes
4answers
276 views
How is property in trustees' hands safe from the trustee's own creditors?
In the context of trust law, trustees are the legal owners of the property in trust. They hold it for the beneficiaries, who are the equitable owners.
Even though trustees legally own the property, ...
0
votes
2answers
137 views
What happens to a company's negative value property if it is liquidated?
What happens to annoying burdensome assets during a company's liquidation?
Perhaps a company owns a mine filled with deadly arsenic trioxide waiting to break out into the environment, or something ...
0
votes
1answer
146 views
Lawyer wants to withdraw - Chapter 13
My husband and I filed a chapter 13 about a year ago and recently paid it off 100%. I started reviewing our files after looking at online mortgage monthly statements because I couldn’t completely ...
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vote
1answer
77 views
if all customers always violate a contract, is enforcement legally impossible?
Hypothetical case for U.S. law (close to reality but simplified here):
A company offers advertising. Customers may get paid by publishing the advertising. The customers presumably want to do this in ...
2
votes
1answer
275 views
Who owns the logo of a company after the company declares bankruptcy?
Who owns the logo of a company after the company declares bankruptcy? For example who owns the logo for toys R'us after they declare bankrupt?
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vote
2answers
182 views
What happens if Apple goes bust?
I know this is unlikely... but, many of us now buy our films/books/music through services like Kindle and iTunes.
Our purchases stay on the provider's infrastructure until we want them then we can ...
2
votes
1answer
190 views
How can you get back intellectual property from a bankrupt startup?
I have written some software for an American startup that has since gone bankrupt. The intellectual property consists of:
Software code
Patents that have me listed as their inventor, but that, ...
7
votes
2answers
197 views
Landlord's LLC filed for bankruptcy, is that a breach of contract?
My landlord owns and maintains the property I'm leasing though an LLC. The lease documents are between myself and the LLC.
I was recently sent a letter that says that my landlord's LLC is filing for ...
0
votes
1answer
156 views
Corporation files ch. 7 but wholly-owned subsidiary LLC does not file - how does this happen?
I have an interesting situation. I’m a customer of a US corporation through its wholly-owned LLC subsidiary (one of several). The entire corporation (including the subsidiarys) shut down operations ...
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vote
1answer
44 views
India: What happens when flat buyers not interested in claims but in flat's registry? How can IRP help in that?
A person purchases a flat and pays 100% of the flat's value including all other formalities. In return, the builder provides possession but not the registry.
What's next? The Buyer is not interested ...
0
votes
2answers
100 views
Can a US court monetary order against a non-US citizen be pursued outside the US?
Say person A (a US citizen) makes a monetary demand on person B (a non-US citizen) over a dealing in the US whose juristiction is the US. Assume that B a citizen of, and resides in, a "1st world" ...
1
vote
1answer
78 views
General bankruptcy inquiry in Germany
A person lives in Germany and owns a business which is in debt. They are afraid they will lose their child and be sent to "debt jail".
Is this a real possibility?
Is there any liability protection ...
2
votes
1answer
75 views
Can a lawyer advise a pro se litigant for technical purposes, without representing them?
May an attorney or legal advisor sit with a pro se litigant to advise on admissibility and/or rules in an Adversarial Chapter 11 proceeding?
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vote
1answer
128 views
Ch 13 Bankruptcy: What happens if you owe too much to repay in 5 years
As I understand it, Ch 13 bankruptcy protects a person by letting them repay their debts over a period of some 5 years. What if a person has more debt than they can repay in 5 years? (In the state of ...
0
votes
1answer
47 views
Subcontractor being refused payment
I’m a IT contractor based in the United Kingdom, I have my own limited company. Recently I have been working on a project for a client through a recruitment company. My contract is with the ...
9
votes
1answer
2k views
Why is court approval necessary to liquidate?
I found this article in the news, claiming that Sears Canada will ask court for permission to liquidate all remaining stores. I can't see why approval would be necessary. Why would it be illegal to ...
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vote
1answer
48 views
Does filing for bankruptcy preclude pursuing all other legal proceedings?
I have heard that if you file for bankruptcy you cannot file any other legal proceeding (in the state of Georgia, USA) until the bankruptcy filing is resolved. Is that so? If so, does the ban on ...
0
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1answer
250 views
Ohio Dissolution Paperwork Language about Bankruptcy
I am filling out the dissolution paperwork for Ohio and I see the following two options:
"The court will retain jurisdiction to enforce payment of debt obligations, in the event a party files ...
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1answer
582 views
If the damages from a lawsuit force the defendant into bankruptcy, are they forgiven?
Say Bob throws a pool party, and because he's secretly homicidal, he decides to poison the pool water, and many of his guests end up in the hospital. He hires a good lawyer to defend him in criminal ...
0
votes
1answer
116 views
Can my wife as a bankrupt's partner ask for trusties costs in bankruptcy to be assessed? And what are those questions to ask?
My trustees in Bankruptcy have tripled their costs as result of my appeal against HMRC assessment of income tax whereas they informed the Tax Tribunal that they are not representing me in the appeal ...
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0answers
51 views
What happens to unsecured debts which were secured in a Ch 13 bankruptcy when dropped?
In some cases in a Chapter 13 bankruptcy, a secured debt can be partially converted to unsecured. For instance an automobile which was not purchased recently can be 'crammed down'
For instance a car ...
