In fact, a Chapter 13 bankruptcy is designed to help save assets such as your house or car if you are facing foreclosure or repossession. As you did prior to filing bankruptcy, you continue to pay your obligations on these assets if youd like to keep them, but as long as the amount of equity you have in the property you own is permitted by the exemptions, the trustee cannot take them. If you have too much equity in your property to protect in a Chapter 7 bankruptcy, you may be eligible to file a Chapter 13 bankruptcy and repay your propertys non-exempt value over a 3-5 year period. A Chapter 13 bankruptcy is not a liquidation bankruptcy, and your house and car are not in danger of being taken by the court to satisfy your debts.

Most people who lose their house in bankruptcy actually choose voluntarily to surrender the property back to the mortgage company because they can no longer afford the monthly mortgage payment. Bankruptcy law allows you to walk away from the debt even if your real estate is sold for less than the balance owed on the mortgage.

Originally posted here:

Can I Keep My House and Car? | Bankruptcy HQ

Go directly to the 2018 Federal Rules of Bankruptcy Procedure table of contents

Bankruptcy law provides for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts by dividing his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Certain bankruptcy proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts. An additional purpose of bankruptcy law is to allow certain debtors to free themselves (to be discharged) of the financial obligations they have accumulated, after their assets are distributed, even if their debts have not been paid in full.

The Federal Rules of Bankruptcy Procedure govern the processes and procedures that a bankruptcy court follows to carry out the Bankruptcy Code.

Bankruptcy law is federal statutory law contained in Title 11 of the United States Code. Congress passed the Bankruptcy Code under its Constitutional grant of authority to establish uniform laws on the subject of Bankruptcy throughout the United States. (U.S. Constitution Article I, Section 8.) States may not regulate bankruptcy though they may pass laws that govern other aspects of the debtor-creditor relationship. A number of sections of Title 11 incorporate the debtor-creditor law of the individual states.

Continue to the 2018 Federal Rules of Bankruptcy Procedure table of contents

Read the original post:

Federal Rules of Bankruptcy Procedure - 2018 Edition

Historical Note

The Federal Rules of Bankruptcy Procedure were adopted by order of the Supreme Court on Apr. 25, 1983, transmitted to Congress by the Chief Justice on the same day, and became effective Aug. 1, 1983.

The Rules have been amended Aug. 30, 1983, Pub. L. 9891, 2(a), 97 Stat. 607, eff. Aug. 1, 1983; July 10, 1984, Pub. L. 98353, title III, 321, 98 Stat. 357; Apr. 29, 1985, eff. Aug. 1, 1985; Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 25, 1989, eff. Aug. 1, 1989; Apr. 30, 1991, eff. Aug. 1, 1991; Apr. 22, 1993, eff. Aug. 1, 1993; Apr. 29, 1994, eff. Aug. 1, 1994; Oct. 22, 1994, Pub. L. 103394, title I, 114, 108 Stat. 4118; Apr. 27, 1995, eff. Dec. 1, 1995; Apr. 23, 1996, eff. Dec. 1, 1996; Apr. 11, 1997, eff. Dec. 1, 1997; Apr. 26, 1999, eff. Dec. 1, 1999; Apr. 17, 2000, eff. Dec. 1, 2000; Apr. 23, 2001, eff. Dec. 1, 2001; Apr. 29, 2002, eff. Dec. 1, 2002; Mar. 27, 2003, eff. Dec. 1, 2003; Apr. 26, 2004, eff. Dec. 1, 2004; Apr. 25, 2005, eff. Dec. 1, 2005; Apr. 12, 2006, eff. Dec. 1, 2006; Apr. 30, 2007, eff. Dec. 1, 2007; Apr. 23, 2008, eff. Dec. 1, 2008; Mar. 26, 2009, eff. Dec. 1, 2009; Apr. 28, 2010, eff. Dec. 1, 2010; Apr. 26, 2011, eff. Dec. 1, 2011;Apr. 16, 2013, eff. Dec. 1, 2013; Apr. 25, 2014, eff. Dec. 1, 2014; Apr. 29, 2015, eff. Dec. 1, 2015; Apr. 28, 2016, eff. Dec 1, 2016.

Effective Date; Application; Supersedure of Prior Rules; Transmission to Congress

Sections 2 to 4 of the Order of the Supreme Court, dated Apr. 25, 1983, provided:

2. That the aforementioned Bankruptcy Rules shall take effect on August 1, 1983, and shall be applicable to proceedings then pending, except to the extent that in the opinion of the court their application in a pending proceeding would not be feasible or would work injustice, in which event the former procedure applies.

3. That the Bankruptcy Rules, heretofore prescribed by this Court, be, and they hereby are, superseded by the new rules, effective August 1, 1983.

4. That the Chief Justice be, and he hereby is, authorized to transmit these new Bankruptcy Rules to the Congress in accordance with the provisions of Section 2075 of Title 28, United States Code.

Read more here:

Federal Rules of Bankruptcy Procedure | Federal Rules of ...

Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.

All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code.

There are different types of bankruptcies, which are usually referred to by their chapter in the U.S. Bankruptcy Code.

Bankruptcy Basics provides detailed information about filing.

The rules of procedure that govern how Bankruptcy Courts operate are called the Federal Rules of Bankruptcy Procedure.

Seeking the advice of a qualified lawyer is strongly recommended because bankruptcy has long-term financial and legal consequences. Individuals can file bankruptcy without a lawyer, which is called filing pro se. Learn more.

You can either browse the Bankruptcy Code using the menu on the right side of you screen or you can proceed directly to the Table of Contents.

See the article here:

U.S. Bankruptcy Code 2018 Edition

Three years after opening up an office in Chicago, Fox Rothschild is doubling its presence in the Windy City through the acquisition of Shaw Fishman Glantz & Towbin, the American Lawyer reported. Philadelphia-based Fox Rothschild could already boast 18 attorneys in Chicago, up from four when it announced the office in April 2015. But according to chairman Mark Silow, the size of the Chicago legal market demanded that the firm expand further. The 23 Shaw Fishman attorneys will officially link up with Fox Rothschild on June 11. That tally also includes two bankruptcy lawyers in Wilmington, Delaware, who will also be part of the merger. Shaw Fishman, founded in 1988, is focused on bankruptcy, commercial litigation and real estate. Silow said the bankruptcy practices of the two firms were especially compatible. While the two firms will consolidate their Wilmington operations, they will initially continue to operate two separate Chicago offices for the next nine or 10 months, until Shaw Fishmans lease expires. Shaw Fishman name partner Robert Fishman called Fox Rothschild a superb fit.

Here is the original post:

ABI | The Essential Resource for Today's Busy Insolvency ...

TIME CHANGE ON JUDGE FERGUSON'S CHAPTER 11 & 7 MOTIONS AND INFORMATION NOTICESANNOUNCEMENT - TIME CHANGE ON JUDGE FERGUSON'S CHAPTER 11 & 7 MOTIONS AND INFORMATION NOTICESSTARTING JANUARY 2018, HEARINGS BEFORE JUDGE FERGUSON ON CHAPTER 11 & 7 MOTIONS AND INFORMATION NOTICES WILL BE AT 10:00 A.M. MOTIONS FOR SUMMARY JUDGMENT WILL BE AT 11:00 A.M.2017 Proposed Amendments Published for Public CommentThe Judicial Conference Advisory Committees on Appellate, Bankruptcy, Criminal and Evidence Rules have proposed amendments to the following rules and forms and have asked that they be circulated to thebar and public for comment.

Appellate Rules: 3, 13, 26.1, 28, and 32Bankruptcy Rules: 2002, 4001, 6007, 9036, 9037, and Official Form 410Criminal Rules: New Criminal Rule 16.1, Rule 5 of the Rules Governing Section 2254 Cases, and Rule 5 of the Rules Governing Section 2255 ProceedingsRules of Evidence: 807

The proposed amendments and the advisory committees reports explaining the proposed changes are posted on the Judiciarys website at:http://www.uscourts.gov/rules-policies/proposed-amendments-published-public-comment.The information is posted in a printable format for those who prefer hard copies.The public comment period closes on February 15, 2018.

More here:

United States Bankruptcy Court - District of New Jersey - Official Site

When you face the possibility of bankruptcy and all the financial and legal complexities that the process entails, we understand that this can be overwhelming. We know how important it is that you canseparate the myths from the reality of the process, and we realize how crucial it is for you to be fully aware of your rights and options in bankruptcy.

At Roxanna M. Hipple, Attorney at Law, we provide the guidance you need. We have handledhundreds of bankruptcy cases and havenearly 35 years of experience. Do not hesitate to get yourfree case evaluation today, and a lawyer can get back to you about your case.

At our firm, we provide outstanding legal assistance in issues that include:

We are ready to help you act quickly in matters such as warding off garnishment, repossession andforeclosure. Then we can help you find a personalized strategy for your unique situation, starting with the big question of whether or notbankruptcy is right for you.

Our bankruptcy attorneys can help you find alternatives to bankruptcy, or we can help you assess whether Chapter 7 or Chapter 13 bankruptcy protections are better for your future. It is important for us that throughout the entire process our clients are included in all the decision-making regarding their future. We are here to provide legal counsel and help you make an informed decision at each stage of the process.

Filing for bankruptcy can be one of the most life-changing legal decisions you can make in a lifetime. We understand how overwhelming the process can be and make ourselves available for our clients. With Roxanna M. Hipple, Attorney at Law at your side, you will never be alone! To better serve clients through the process of filing for bankruptcy, we have offices conveniently located throughout the Chicagoland area.

We proudly serve the following areas:

We also serve other surrounding areas in the community and the Fox Valley including Aurora, Elgin, South Elgin, Geneva, Lisle, Naperville and West Chicago. Call our legal team today to schedule your confidential consultation in one of ouroffice locations nearest to you!

When you are struggling with debt, you need to know that your case is in good hands. Not only does this mean working with a bankruptcy lawyer who has all the right credentials, but also working alongside a firm that provides dedicated, personal care you deserve. You can find the experience, skill, and personal service you need at Roxanna M. Hipple, Attorney at Law regardless of where you are located in the Chicagoland area.

Do not hesitate tocontact us today to start finding your path to a brighter financial future!

Follow this link:

Kane County Bankruptcy Lawyer | Roxanna M. Hipple, Attorney ...

For Caesars Entertainment Corp.s lengthy and, so far, triumphant climb out of Chapter 11 bankruptcy protection, it was Veni, vidi, vici I came, I saw, I conquered.

For Caesars Entertainment Corp.s lengthy and, so far, triumphant climb out of Chapter 11 bankruptcy protection, it was Veni, vidi, vici I came, I saw, I conquered.

Nevada Gaming Commission Chairman Tony Alamo, like his state Gaming Control Board counterpart, A.G. Burnett, two weeks earlier, quoted the Latin phrase attributed to Julius Caesar on the Battle of Zela after commissioners unanimously approved a series of registrations and licensing that will enable the Las Vegas-based gaming giant to clear Nevadas final regulatory hurdle while in bankruptcy.

Caesars has 47 properties worldwide, including nine in Las Vegas.

Caesars CEO Mark Frissora, Tim Donovan, the companys general counsel and compliance officer, and chief financial officer Eric Hession explained a merger of Caesars Entertainment Corp. with Caesars Entertainment Operating Co. and the emerging companys exit from Chapter 11 bankruptcy protection as well as registrations of subsidiary companies and LLCs and the licensing and suitability of several corporate officers, executives and key employees.

Most members of the commission sat in on or read transcripts from Caesars presentation to the state Gaming Control Board in Carson City on Aug. 9 at which board members unanimously recommended approval of every regulatory matter.

Commissioners, who didnt have to approve the bankruptcy plan but instead licensed and registered the new post-bankruptcy entities, had no objections in their hearing, but questioned executives to fully understand the corporate restructuring.

Under terms of the bankruptcy emergence plan, outlined in an 839-page registration statement filed with the Securities and Exchange Commission last month, Caesars would separate nearly all of its U.S.-based real estate property assets from its gaming operations. Caesars Entertainment would continue to own and manage the gaming operations and the property assets would be held by a newly created real estate investment trust owned by some creditors.

Caesars filed for Chapter 11 bankruptcy protection in January 2015 and after two years of contentious negotiations among creditors, Judge Benjamin Goldgar of the Northern District of Illinois in Chicago approved the bankruptcy plan in January 2017.

Company shareholders overwhelmingly approved a merger in two separate votes late last month.

Caesars is now down to two jurisdictions needing to approve the companys emergence from bankruptcy. Company officials will meet with regulators in Louisiana and Missouri in September and plan to escape bankruptcy in early October.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.

Big plans for Caesars

Caesars CEO Mark Frissora told the Nevada Gaming Commission that Caesars Entertainment has big growth plans once it emerges from Chapter 11 bankruptcy protection in October.

The company already has invested $640 million on improvements on the Strip, including 6,000 room renovations this year and 4,000 in 2016.

Frissora said the company is looking to license the Caesars and Flamingo brands domestically and internationally and would consider property acquisitions.

Caesars also is looking to develop 90 acres in various locations in Las Vegas over the next two to three years, including a 300,000-square-foot convention facility east of The Linq Promenade serving nearby Harrahs, Flamingo and The Linq Hotel and could lead to the addition of 300 to 400 new jobs when completed.

See original here:

Caesars unit clears Nevada hurdle in bankruptcy emergence - Las Vegas Review-Journal

The legal teams for Charleston County and the Utah-based owners of the former Charleston Naval Hospital in North Charleston were summoned to an afternoon of closed-door talks Thursday in downtown Charleston by U.S. Bankruptcy Court Judge John E. Waites.

A trial, in which the building's owners are suing the county for tens of millions of dollars, had been scheduled to start Wednesday morning but was postponed and has not been rescheduled. The two sides have positions that would seem to defy compromise the building owners want the county to honor a nearly $30 million long-term lease agreement that the county backed out of last year and it's not known if any progress in the dispute was made Thursday.

Charleston County's lead lawyer, Joe Dawson, said only "uneventful" in response to a reporter's questions about the talks, as he left the court building. The owners of the former Naval Hospital in North Charleston, Chicora Life Center, and their legal team made no substantive comments while waiting for the elevator.

The county had planned to become the anchor tenant of a redeveloped Naval Hospital, leasing three floors of the tallest building in North Charleston, at Rivers and McMillan avenues, and relocating some public services there starting in 2014.

It was a plan meant to help revitalize a struggling area of North Charleston, and facilitate the county's agreed-upon sale of a downtown Charleston building known as Charleston Center to the Medical University of South Carolina.

The lease agreement allowed the Chicora group investors including Donald Trump Jr., a son of the U.S. president to secure financing to redevelop the long-vacant hospital building. However, the county backed out of the deal in 2016 after complaints about repeated delays, missed deadlines and related issues such as multiple contractors claiming they weren't paid.

With the anchor tenant gone, Boston lender UC Funds foreclosed on the hospital property, claiming more than $15 million in debt, and the building owners sought bankruptcy protection and sued the county. Waites ruled previously that the lease would be considered an asset in the bankruptcy case.

Reach David Slade at 843-937-5552. Follow him on Twitter @DSladeNews.

Read the original post:

Closed-door talks as Naval Hospital bankruptcy and Charleston County lawsuit continue - Charleston Post Courier

Hanjin Shipping Co.s financial troubles that led to bankruptcy a year ago stranded precious cargo, causing losses for trucking and other transportation companies.

LESSONS LEARNED: Supply chain execs say Hanjin taught them a lot.

RoadOne IntermodaLogistics lost more than $100,000, CEO Ken Kellaway said.

I dont think well get more than 5 or 10 cents on the dollar and even thats a stretch, he said. RoadOne ranks No. 9 on the Transport Topics list of top intermodal and drayage providers.

Devine Intermodal hasnt received a dime of a $100,000 loss after the Hanjin collapse. (Devine Intermodal)

Most other trucking companies and creditors havent seen any direct payments from Hanjin, though according to Indianapolis-based attorney Craig Helmrich of Scopelitis, Garvin, Light, Hanson & Feary, some have been able to settle claims for partial credit.

Some people settled both sides of the claim, meaning the competing claim of Hanjin wanting to collect its receivables and Hanjin creditors wanting some credit for the injury the business [collapse] caused, Helmrich told TT.

According to the Declaration and Status Report of the first creditors meeting June 1 in a Korean court, more than 180 creditors attended the session, led by Jin Han Kim, trustee for Hanjin.

Gerstner

Attorney Kurt Gerstner of Seoul, South Korea-based Lee International IP & Law Group, told TT that his 20 or 30 Hanjin clients have basically dropped out now because they have low expectations about recovery, given the information thats come from the court.

According to the report, claims filed total about $10 billion. The debtors estate has recovered just a fraction, raising about 2.4%.

Helmrich explained that even if the Hanjin bankruptcy court denies a claim, thats not necessarily the end of the road. Theres a whole process in Korea where everybody submits their claim and then a trustee decides whether to agree or dispute it. If they dispute, then you have a miniature trial where you present evidence and the court looks at everything and decides whether youve proved [grounds for payment].

He said Scopelitis told its dozen Hanjin clients early that they could easily spend $50,000 proving their case, and if they only recovered a cent on the dollar, it wouldnt pay to wait out the bankruptcy.

None of my clients held out hope for a payout of any significant size in the case on unsecured claims. Because there was little hope of a payout, unsecured creditors were wise to use their claims to negotiate reductions in claims by Hanjin, he said.

One creditor who didnt settle, Devine Intermodal, instead chose to take its lumps and hasnt received a dime. We took the hit and canceled the receivables. It was a loss of $100,000 on our bottom [line] for 2016, said Richard Coyle, president of the Sacramento-based intermodal company. Once [Hanjin] declared bankruptcy, all of our open receivables were deemed uncollectable, so we have already written them off. We tried to seek remuneration from actual cargo owners but got nowhere.

Instead of continuing to fight, Devine chose to raise our prices with those same cargo owners with future shipments on other ocean carriers.

See more here:

Hanjin Bankruptcy Led to Heavy Losses, Write-Offs - Transport Topics Online

Wall Street Journal (subscription)

Seadrill, a Big Offshore Oil Player, to Seek Bankruptcy Protection Wall Street Journal (subscription) Offshore-drilling services major Seadrill Ltd. said Thursday it will likely file for bankruptcy protection next month as part of a plan to restructure around $10 billion in debt. The Bermuda-based company, controlled by Norwegian shipping magnate John ... Offshore driller Seadrill to file for chapter 11MarketWatch Seadrill (SDRL) Stock: Falling Hard On Bankruptcy NewsCNA Finance (press release) Seadrill in line for Chapter 11 bankruptcy within weeksEnergy Voice all 16 news articles »

The rest is here:

Seadrill, a Big Offshore Oil Player, to Seek Bankruptcy Protection - Wall Street Journal (subscription)

Caesars Entertainment Operating Company filed with the U.S. Bankruptcy Court a motion to approve a compromise and settlement agreement by and among Caesars Entertainment Operating Company (CEOC), Caesars Entertainment Corporation (CEC) and designate insurers under certain management liability insurance policies (collectively, Settling Insurers) concerning the resolution and release of certain claims covered under certain policies.

The motion explains, The Settlement Agreement between Caesars and the Settling Insurers resolves a multiparty dispute concerning $140 million in coverage under Caesars director and officer insurance policy arrangement. Pursuant to the Settlement Agreement, the Settling Insurers have agreed to pay, in cash, 90 percent of the contracted-for coverage amounts under the respective policies. In exchange, Caesars has agreed to relieve the Settling Insurers from any further obligations to Caesars under the insurance policies. This $126 million cash settlement is a vital part of the Debtors confirmed plan of reorganization [Docket No. 6318] and underlies both the cash distributions to creditors and, because cash is fungible, the cash at Caesars that underlies the value of the equity being distributed to the Debtors creditors under the Plan. Thus, entry into and approval of the Settlement Agreement is a key milestone as the Debtors work towards emergence from bankruptcy protection. Accordingly, for these reasons and the reasons set forth herein, the Debtors submit that the Settlement Agreement is fair and reasonable to their estates and should be approved.

The Court scheduled a September 13, 2017 hearing to consider the settlement, with objections due by September 6, 2017.

Read more CEOC bankruptcy news.

Continue reading here:

CEOC Bankruptcy Agreement Filed - Bankrupt Company News (press release) (blog)

Sears Canada, which has more than 200 stores and about 17,000 employees, was spun-off as an independent company in 2012. But the filing is still bad news for Sears Holdings (SHLD), which owns both the Sears and Kmart brands in the United States. Sears Holdings still owns 12% of its shares.

Sears Holdings CEO and principal shareholder Eddie Lampert, who has been struggling to keep the company afloat amid its own mounting losses, owns a total of 45% of Sears Canada both personally and through his hedge fund.

The bankruptcy filing was not a surprise. Sears Canada said a week ago that it was in danger of running out of the cash it needed to fund operations. Thursday's filing said that it expects to remain in business.

Related: Retail bloodbath - Bankruptcy filings are up

Sears Canada said that recent changes to its stores are starting to resonate with consumers, but it had to file for bankruptcy to give it the time it needed to let those changes take hold. In the last quarter alone, Sears Canada burned through about 30% of its cash and maxed out its existing credit lines. It said it had planned to borrow 175 million Canadian dollars to fund operations, but after negotiations with lenders it found it could only secure only C$109 million in additional loans.

Sears Canada said it hoped to be able to restructure and emerge from bankruptcy later this year. It did not give any details about store closing plans or staff cuts it might make as part of its restructuring.

In March, Sears Holdings also issued a warning about there being "substantial doubt" it could stay in business. But that warning, as serious as it was, did not paint the dire picture of a company running out of cash in the near term as did Sears Canada's warning last week.

Sears and Sears Canada are hardly the only struggling retailers. In the United States, retail bankruptcies are up about 30% so far this year, according to BankruptcyData.com. Well known names including RadioShack, Gymboree, Sports Authority and Payless Shoes have all filed for bankruptcy within the last year. Total store closings across the U.S. are likely to reach record levels this year.

By some estimates, 25% of U.S. malls could close within the next five years. Department stores have shed 46% of their workers since 2001, a greater percentage of their jobs than coal mines or factories have lost over the same period.

CNNMoney (New York) First published June 22, 2017: 8:41 AM ET

Read more from the original source:

Sears Canada files for bankruptcy - Jun. 22, 2017

Overview

Bankruptcy law provides for the reduction or elimination of certain debts, and can provide a timeline for the repayment of nondischargeable debts over time. It also permits individuals and organizations to repay secured debt--typically debtwith real estate orpersonal property like vehicles pledged as collateral--often onterms more favorable to the debtor.

Federal bankruptcy law is contained in Title 11 of the U.S.Code. Congress passed the Bankruptcy Code under its constitutional grant of authority to "establish... uniform laws on the subject of Bankruptcy throughout the United States." See U.S. Constitution Article I, Section 8. States may not regulate bankruptcy, butthey may pass laws that govern other aspects of therelationship between the debtor and creditor. A number of sections of Title 11 incorporate the debtor-creditor law of the individual States.

Bankruptcy proceedings are supervised by and litigated inBankruptcy Court, which is part of the Federal District Court system. Congress established the U.S.Trustee Programto oversee theadministrationof bankruptcy proceedings, and authorized the U.S. Supreme Court to promulgatethe Federal Rules of Bankruptcy Procedure.

Chapter 7 provides for the discharge of unsecured debt, such as debt from credit cards and personal loans. Secured debt is typically unaltered, meaning that the collateral securing the debtremains in the debtor's possession as long as timely payments aremade.Chapter 7 is always available to corporations and individuals with primarily business debt. Otherwise, individuals cannot file a Chapter 7 petition unless they meet certain income requirements.

Chapter 9 governsthe reorganization of municipalities and related local entities, such ascounty-owned hospitals and school districts. Individuals and corporations cannot file for bankruptcy under Chapter 9.

Chapter 11 is the most comprehensive chapter of the Bankruptcy Code; it provides myriadoptions to reorganize debt, e.g.by repaying some debts, discharging others and restructuring the remainder. Although individuals may file for Chapter 11 relief, the relatively high filing fees and administrative costs lead most individuals to favor Chapter 7 or Chapter 13 bankruptcy proceedings.

Chapter 12 provides for the restructuring of debtfor family farmers.Only family farmers (as defined in Sec. 101 of Title 11)are eligible and, though not analogous, it shares many characteristics with aChapter 13proceeding.

Chapter 13 permits the discharge of some debt, as well as the repayment of otherdebtover a period of three to five years.It may also permit a reduction in principal owed on secured debt, or the elimination of these debts altogether. It can also be used to structure a repayment plan for debtthat cannot be discharged in bankruptcy. Only individuals may file under this chapter, and there are some limited income and debt qualifications.

Typically, recent tax debtas well as child support, criminal restitution, and student loans will not be discharged in bankruptcyunless they are repaid in full by the debtorduring the course of the proceeding.

Individuals are permitted to keep certain assets without regard to the type of bankruptcy sought. For example, Individual Retirement Accounts (IRAs)are protected under 522(d)of Title 11 and thus cannot be involuntarily used to repay creditors in a bankruptcy.Varying levels of home equity are also often protected, asarepersonal vehicles in varying amounts.

In Czyzewski v. Jevic Holding Corp., the U.S. Supreme Court held that "when a bankruptcy court orders a Chapter 11case dismissed, it can't also order the distribution of the debtor's assets in a way that contradicts the order of payment in a bankruptcy liquidation." This is an affirmation of the Chapter 11 absolute priority rule, which stipulates the order of payment in a liquidation. Compare to the 2009 Chapter 11 bankruptcy filing of General Motors, in which the absolute priority rule was not followed.

In Midland Funding, LLC v. Johnson, the Court ruled "that debt collectors can use bankruptcy proceedings to try to collect liabilities that are so old the statute of limitations has expired." This result, however, is dependent on state law. In this case, the relevant state law provides that a creditor has the right to payment of a debt even after the statute of limitations has expired, according to the Court's opinion.

Stern v. Marshall was a complex and high-profile case involving the estate of the defendant's late husband, and eventually her own bankruptcy. Anna Nicole Smith, a.k.a. Vickie Marshall, filed for bankruptcy in California while the estate case was open in a Texas probate court. The bankruptcy court's decision included a judgment on a counterclaim that Marshall made against the plaintiff, which was otherwise unrelated to the bankruptcy. Although state law allowed the bankruptcy court jurisdiction in this situation, the U.S. Supreme Courtheld that it was an unconstitutional exercise of jurisdiction. That is, bankruptcy courts have very limited jurisdiction.

TheSternprecedent was relevant years later in Executive Benefits Insurance Agency v. Arkison, in which the Court held that, underStern'sreasoning, it is unconstitutional for a bankruptcy court to enter a final judgment on a bankruptcy-related claim.It may, however,issue proposed findings of factand conclusions of law, which are to be reviewed de novo by the district court.

Last updated in June of 2017 by Stephanie Jurkowski.

Excerpt from:

Bankruptcy | Wex Legal Dictionary / Encyclopedia | LII ...

Pittsburgh Post-Gazette

Joe's Crab Shack closings follow parent company's bankruptcy filing ... Pittsburgh Post-Gazette The Joe's Crab Shack restaurant in Robinson has closed, making it the latest in a string of abrupt Crab Shack closings nationwide in recent weeks. Joe's Crab Shack abruptly shuts down Pittsburgh area location ...Tribune-Review all 9 news articles »

More here:

Joe's Crab Shack closings follow parent company's bankruptcy filing ... - Pittsburgh Post-Gazette

Dive Brief:

Alevo USA and Alevo Manufacturing filed for Chapter 11 bankruptcy court protection late last week.

In the filing, with the United States Bankruptcy Court for the Middle District of North Carolina, Alevo said it hopes to achieve an orderly liquidation of their assets and maximize value to pay their creditors.

Alevo is the second battery maker to file for bankruptcy this year after pinning its hopes on a novel technology. The battery storage developer made a $1 billion bet on a new technology that would grant longer life to enable lithium-ion batteries. The bankruptcy comes after another energy storage

In March, Aquion Energy, which was developing an aqueous hybrid battery based on salt water, filed for bankruptcy.

Alevo signed an agreement with Ormat Technologies early this year to jointly build, own and operate the 10 MW Rabbit Hill Energy Storage Project in Georgetown, Texas, about 10 miles north of Austin. And last year, the company began a project to build an 8 MW, 4 MWh energy storage system in Lewes, Dela., that would use Alevos GridBank technology.

This decision was driven by the formidable challenges of bringing a new technology into commercial production and lacking the financial wherewithal to continue on through repeated manufacturing delays. It is a sad day for our dedicated employees and partners, as well as for the promise of Alevos technology, Peter Heintzelman, chief financial officer at Alevo, said in a statement.

View original post here:

Battery storage manufacturer Alevo files for bankruptcy | Utility Dive - Utility Dive

Bill Fallon, the chief executive of National Public Finance Guarantee Corporation, a bond insurer, called the move improper and warned that it would leave Prepa years away from attracting the private investment necessary to modernize.

Electrical power has long been a drag on the islands economy. Prepas antiquated generating plants burn imported oil to produce electricity. Efforts to modernize the plants and shift to clean and renewable fuels have been delayed repeatedly. Customers pay rates that follow oil prices up and down, and while the rates are relatively low at the moment, they are vulnerable to rising again.

In addition, there are longstanding accusations that Prepas fuel-purchasing office for many years bought dirty oil sludge as fuel, charged consumers the much higher price of cleaner distillates, and then created a slush fund with the difference. The Puerto Rican senate held a series of hearings on Prepas fuel-purchasing irregularities, and has referred its findings to the Federal Bureau of Investigation.

Prepa got into severe financial trouble before the rest of the Puerto Rican government, when it was unable to pay for fuel in 2014. Its creditors extended fuel-purchasing credit that year, and subsequently negotiated a deal to restructure about $5.7 billion of Prepas $9 billion in total debt.

The deal was held up as a model at the time, because it was achieved without the sort of leverage that can be exerted in bankruptcy. In addition to taking a 15 percent loss, the bondholders had agreed that Prepa could put a portion of the savings toward its long-promised modernization and conversion to cleaner sources of power.

But the agreement also called for Prepa to continue paying down its remaining debt by adding an unpopular increase in power customers monthly bills. It also required the restructured debt to be secured to an investment-grade rating, an insurmountable challenge with the islands central government itself effectively bankrupt, and its economy in a painful decline.

Last week, the federal oversight board that is guiding Puerto Ricos finances voted to authorize Prepa to seek debt relief under Title III of Promesa, which is similar to Chapter 9 municipal bankruptcy. Natalie Jaresko, the boards executive director, said then that talks could continue, and the utilitys bondholders said they still hoped to pursue the consensual deal. They also offered to cover a $170 million interest payment that Prepa was required to make to bondholders on Saturday.

But Prepa declined that offer, defaulting on the payment and paving the way for the move on Sunday for court protection.

A version of this article appears in print on July 3, 2017, on Page B2 of the New York edition with the headline: Puerto Ricos Power Agency Defaults Over Debt.

Read the original here:

Puerto Rico's Power Authority Effectively Files for Bankruptcy - New York Times

"If the Titanic was visible on land, we would not be having this discussion and it would be taken better care of."

Katie Rosevear, from Cornwall, whose great-uncle Stephen Jenkin sunk with the Titanic, said any further salvaging of the Titanic sounded "horrific".

The 62-year-old still wears a blue stone bracelet that Mr Jenkin gave her grandmother before boarding the ship back to work in the copper mines in Michigan.

"It should be left to rest in peace," said the primary school teacher.

"My uncle's body was never found and it's a possibility his body is still aboard the ship."

Carpenter Simon Medhurst, whose great grandfather Robert Hitchens died with the ship, is scared the collection could be bought by an individual who does not exhibit it.

Mr Hitchens was at the helm of the vessel as it struck the iceberg and has been blamed for the disaster.

"It would obviously be a shame if it was plundered," said the 49-year-old father-of-four, from Chelmsford, Essex.

Continue reading here:

Fears Titanic wreck could be pillaged after salvage company falls into bankruptcy - Telegraph.co.uk

If you heard fireworks July 1, it might not have been people overanxious for Independence Day. They might have been celebrating the fact that the county made its final debt service payment to bondholders stemming from the 1994 bankruptcy. This marks an important milestone, and should serve as a reminder of the pitfalls of unaccountable government spending.

The bankruptcy was a painful chapter in the countys history, and recovering from it has presented many challenges, Chairwoman Michelle Steel, Second District Supervisor, said in a statement. Through meeting our financial challenges and fulfilling our bankruptcy debt obligation, the county is well positioned to continue our mission of making Orange County a safe, healthy and fulfilling place to live, work and play.

But while Orange County is unlikely to repeat its risky investment-fueled downfall, the county is not without its financial challenges. Unfunded pension liabilities remain a major cause for concern not just for the county, but across the state. According to the State Controllers Office, the unfunded liability of Californias pension plans surpassed $234 billion in 2015, the most recent year available.

Yet, many still seem to think government debt doesnt matter until it does. Pension-fueled insolvency in the cities of Stockton, Vallejo and, closer to home, in San Bernardino, prove that spending and debt have consequences.

State Sen. John Moorlach, R-Costa Mesa, sounded that warning again in a recent Bond Buyer interview.

There is something brewing in the state, Moorlach told the trade newspaper. If we didnt have Silicon Valley, we would be toast. We have job growth, but not in high-paying jobs. And we have cities scrambling right now trying to figure out how they are going to pay next years pension contribution.

Moorlach sounded the alarm in 1994, too. It proved to be a politically unpopular prognosis that lost him the election for Orange County treasurer-tax collector, and earned him the nickname Chicken Little. But by the next year, the countys municipal bond portfolio was in ruins and Moorlach had been appointed to fill the vacated position he had sought. His license plate still reads: SKY FELL. We didnt believe him then; maybe we should believe him now.

Read the original:

Still learning lessons of 1994 bankruptcy - OCRegister

Gracious Home has a new lease on life.

The twice-bankrupt home goods retailer has emerged from its latest trip through Chapter 11 with plans to become the Warby Parker of bed linens and lighting that is, to use its brick and mortar locations solely for showrooming its products.

The once hot chain financed its exit from Chapter 11 with $4 million from Tom Sullivan, the founder of Lumber Liquidators, who bought the upscale home goods store out of bankruptcy.

A Manhattan Bankruptcy Court judge approved the sale late Thursday.

Sullivan, the only bidder for the chain, paid off a $3 million loan from JMB Capital Partners that allowed Gracious Home to acquire new inventory while it was reorganizing.

Tom is famous for buying distressed companies, said Gracious Home Chief Executive Robert Morrison, a former senior vice president of Lumber Liquidators, who helped Sullivan take his old company public and reached out to him earlier this year.

The timing wasnt right as he was exiting Lumber Liquidators at the time, but we began talking again in May, said Morrison, who will continue to head up Gracious Home.

The chain closed three of its four stores last year, retaining just its Upper East Side location.

With fresh capital and a new online focus, Morrison hopes to open about six stores in major cities like Miami, San Francisco and Washington, DC, he said, adding that the stores would be similar to the Warby Parker showroom model.

The important thing is to remain nimble and to have small stores that dont need a lot of inventory, Morrison said.

The 54-year-old chain, which had sold everything from silk pillows and chandeliers to furniture polish and Lysol, is now focusing on lighting and bed and bath linens. A set of sheets costs about $500 while floor lamps and sconces run between $400 and $1,400 a pop.

Sullivan stepped away from Lumber Liquidators this year after serving as interim CEO during a much publicized crisis over reports that its laminate flooring had elevated levels of formaldehyde, which made some consumers ill and resulted in numerous lawsuits.

A serial entrepreneur, Sullivan also owns Cabinets To Go, a 54-store chain he founded in 2008.

Tom will be very helpful, Morrison said. Hes a real American success story.

Go here to read the rest:

New owner takes Gracious Home out of bankruptcy - New York Post