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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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What is the creditor priority of stolen property in bankruptcy proceedings?

In bankruptcy, a large number of hands fight to take slices from a small pie. The Absolute Priority Rule specifies that creditors are paid following a predetermined order based on the type of their ...
TheEnvironmentalist's user avatar
0 votes
1 answer
81 views

WeWork chapter 11 bankruptcy. Can an offer better than the creditors offer be rejected?

WeWork is going through Chapter 11. Currently, they seem to be going with the offer from the creditors. However, Adam Neumann has offered them more money than than the creditors. He initially offered ...
ZeroPhase's user avatar
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2 answers
66 views

Is company under receivership in Washington State obligated to pay for use of occupied property before deciding to assume or reject lease?

Under Washington State law, it appears that companies under receivership have no hard and fast timeframe under which they are required to decide if they wish to assume or reject a lease executed ...
Seth Revelle's user avatar
3 votes
0 answers
51 views

Can assets be protected from sale in bankruptcy by a contract not to sell them?

It is apparently common to not be allowed to resell seeds obtained from growing genetically modified plants, as a condition of having the original seeds sold to you. But one might have several ...
interfect's user avatar
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22 votes
5 answers
8k views

Is Intentional Bankruptcy Illegal?

This is a completely hypothetical scenario and so I'm happy for answers for any jurisdiction, however I'm based in the UK and so some of my terminology may be specific to there. What is the legality ...
Luke's user avatar
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0 votes
1 answer
51 views

Do assets custodied by a trustee form part of the Bankruptcy Estate if the trustee enters Chapter 11 Bankruptcy [closed]

I own some securities giving me a beneficial interest in an LLC (let's call it LLC A) which were issued to another LLC (let's call it LLC B) as a custodian and trustee. LLC B has entered Chapter 11 ...
user53910's user avatar
0 votes
0 answers
59 views

What indemnities will I get if my company is declared bankrupt during a professionnalization contract?

I have a professionalization contract ("Contrat de professionnalisation") in a determined duration ("CDD") with a company that will soon be declared bankrupt in France. I find much ...
Thomas's user avatar
  • 101
1 vote
1 answer
61 views

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 (...
lunix's user avatar
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1 vote
1 answer
112 views

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 ...
Luke Sawczak's user avatar
4 votes
4 answers
834 views

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/...
user768421's user avatar
2 votes
0 answers
117 views

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 ...
Bionix1441's user avatar
2 votes
1 answer
150 views

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 ...
Frank Swanton's user avatar
10 votes
2 answers
2k views

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....
Cromon's user avatar
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1 vote
1 answer
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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 ...
YXDV's user avatar
  • 11
2 votes
2 answers
236 views

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-...
user768421's user avatar
1 vote
1 answer
84 views

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 ...
HAEM's user avatar
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1 vote
1 answer
671 views

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 ...
superphonic's user avatar
2 votes
1 answer
148 views

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 ...
PMF's user avatar
  • 6,476
0 votes
2 answers
315 views

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? ...
quarague's user avatar
  • 3,570
1 vote
2 answers
114 views

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 ...
Davis Owen's user avatar
23 votes
4 answers
6k views

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 ...
JonathanReez's user avatar
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2 votes
2 answers
52 views

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 ...
perennial_noob's user avatar
1 vote
1 answer
73 views

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-...
ehh hhh's user avatar
  • 11
2 votes
1 answer
315 views

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 ...
Zach's user avatar
  • 21
1 vote
1 answer
108 views

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 ...
jcardan's user avatar
  • 11
6 votes
3 answers
387 views

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). ...
sleske's user avatar
  • 8,293
11 votes
3 answers
4k views

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. ...
Boshy 1984's user avatar
1 vote
4 answers
169 views

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 ...
user avatar
1 vote
0 answers
19 views

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 ...
Scott Bellick's user avatar
-1 votes
4 answers
151 views

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 ...
D J Sims's user avatar
1 vote
1 answer
144 views

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 ...
George's user avatar
  • 13
0 votes
1 answer
48 views

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 ...
Jason F's user avatar
-2 votes
2 answers
90 views

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 ...
Jason Friedman's user avatar
1 vote
1 answer
104 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 --...
Franck Dernoncourt's user avatar
-1 votes
2 answers
123 views

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% ...
Frank Swanton's user avatar
2 votes
1 answer
89 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 ...
david's user avatar
  • 574
1 vote
1 answer
70 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 ...
Ryan Edgehook's user avatar
1 vote
2 answers
98 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 ...
BCool's user avatar
  • 11
1 vote
0 answers
37 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 ...
Sean Ward's user avatar
3 votes
1 answer
164 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 ...
Sean Ward's user avatar
0 votes
2 answers
151 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 ...
Mister SirCode's user avatar
0 votes
1 answer
768 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 ...
Mister SirCode's user avatar
0 votes
0 answers
45 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 ...
Dolph Smudgeon's user avatar
-1 votes
1 answer
113 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 ...
Dolph Smudgeon's user avatar
2 votes
1 answer
159 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 ...
user avatar
1 vote
1 answer
210 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 ...
Economics User's user avatar
1 vote
1 answer
183 views

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?
David Randolph's user avatar
2 votes
2 answers
202 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' ...
David Randolph's user avatar
1 vote
1 answer
49 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 ...
Hellawyer's user avatar
1 vote
2 answers
529 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 ...
Norman Sobieck's user avatar