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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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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6 votes
3 answers
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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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10 votes
3 answers
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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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1 vote
4 answers
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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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-1 votes
4 answers
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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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-2 votes
2 answers
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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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1 vote
1 answer
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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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-1 votes
2 answers
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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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3 votes
1 answer
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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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2 votes
1 answer
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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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1 vote
2 answers
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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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4 votes
1 answer
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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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0 votes
2 answers
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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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0 votes
1 answer
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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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-1 votes
1 answer
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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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2 votes
1 answer
117 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 ...
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1 vote
1 answer
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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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1 vote
1 answer
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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 341 creditors meeting? Asking as a matter of law - what does the law say?
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3 votes
2 answers
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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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1 vote
1 answer
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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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1 vote
2 answers
260 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 ...
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0 votes
1 answer
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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 ...
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1 vote
1 answer
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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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2 votes
1 answer
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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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3 votes
2 answers
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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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-1 votes
1 answer
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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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1 vote
2 answers
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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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20 votes
2 answers
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?
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0 votes
1 answer
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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 ...
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3 votes
1 answer
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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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1 vote
1 answer
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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-...
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0 votes
1 answer
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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 ...
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5 votes
4 answers
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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, ...
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0 votes
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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 ...
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0 votes
1 answer
152 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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1 vote
1 answer
102 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 ...
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2 votes
1 answer
328 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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1 vote
2 answers
234 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 ...
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2 votes
1 answer
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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, ...
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7 votes
2 answers
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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 ...
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1 vote
1 answer
202 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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1 vote
1 answer
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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 ...
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