Category Archives: Bankruptcy

Introduction

The Insolvency and Bankruptcy Board of India (the Board) vide its circular no. IBBI/2022-23/GN/REG084 dated 14 June 2022, in exercise of the powers conferred under clause (t) of sub- section (1) of section 196 read with sections 7, 9 and 240 of the Insolvency and Bankruptcy Code, 2016 (the Code) has introduced the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2022 (Amendment Regulations).

Amendments

The Key amendments introduced by the Amendment Regulations are as follows:

provides for the manner in which proceedings in respect of avoidance transactions, if any, under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code, will be pursued after the approval of the resolution plan and the manner in which the proceeds, if any, from such proceedings shall be distributed:

Provided that this clause shall not apply to any resolution plan that has been submitted to the Adjudicating Authority under sub-section (6) of section 30 on or before the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2022.

Comments

Conclusion

The Amendment Regulations provide for much needed changes and appear to have been prepared after considering the difficulties faced by stakeholders in a CIR process. The provisions dealing with flow of information to the IRP/RP may help in enhancing the speed and efficacy of the CIR Process. Interestingly, the amendment related to a resolution plan having a provision for dealing with avoidable transactions and the proceeds thereof shall not be applicable to plans which have been submitted to the adjudicating authority, however, if plans have been approved by a committee of creditors but not submitted to the adjudicating authority, they may have to be modified for dealing with this requirement. This would have to be seen in view of the earlier amendments which mandated that a plan could be modified only once.

The content of this document does not necessarily reflect the views / position of Khaitan & Co but remain solely those of the author(s). For any further queries or follow up please contact Khaitan & Co at [emailprotected].

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ERGO Analysing Developments Impacting Business: Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second...

Katie Price's bankruptcy hearing has been put back to 2023. (Getty Images)

Katie Price has avoided yet another court date as her bankruptcy hearing has been postponed until 2023.

The 44-year-old reality star - who was declared bankrupt in 2019 - had been due to appear at Londons Royal Courts of Justice to answer questions about her debts on 7 June, but the court hearing was postponed.

It has now been relisted for 9 February 2023.

Read more: Katie Price surprises Harvey with visit from Barney the Dinosaur for his birthday

It is the third time the court date has been put back.

Price was once said to be worth 40 million. She now has debts totalling 3.2m, mostly to lenders for mortgages secured against her home in Sussex, which she dubs 'Mucky Mansion'.

Katie Price made a Channel 4 show about renovating her 'Mucky Mansion'. (Channel 4)

Last year she was handed a repossession order on that property and has several notices on the deeds lodged at the Land Registry for failing to repay the money she owes.

Her bankruptcy trustees have requested details of how much she has been paid for her recent TV work, including her Channel 4 show charting her attempts to renovate the country home.

Earlier this year the mother-of-five launched her own OnlyFans account in a bid to make money through the subscription social media service.

She originally filed for bankruptcy on her cosmetics company Jordan Trading Ltd in 2017.

Among her various business ventures are a range of equestrian clothes, a series of best-selling novels and a range of nutritional supplements.

Katie Price joined OnlyFans in January 2022 to make money. (PA)

In 2019 her custom pink Range Rover was spotted on sale at a used car dealership in Essex after being repossessed.

And the same year her pink Volkswagen Beetle was repossessed due to spiralling fines from an unpaid toll charge dating back two years.

Price recently pleaded guilty to breaching a restraining order against ex-husband Kieran Hayler's partner.

The former glamour model escaped a jail sentence for speeding charges, which took place just days before her drink-drive crash.

She received a suspended sentence in December after she pled guilty to drink-driving in the early hours of 29 September.

Story continues

Katie Price appearing at court on charges of breaching a restraining order. (PA)

She was given a four month suspended sentence and ordered to complete 20 hours of rehab and 100 hours of community service.

Read more: Katie Price's boyfriend Carl Woods' threatening behaviour charge dropped

Price is mother to 20-year-old son Harvey, whose father is footballer Dwight Yorke; she shares Junior, 17, and Princess, 14, with first husband Peter Andre; and Jett, eight, and Bunny, seven, with third husband Kieran Hayler.

Watch: Katie Price appear at court on charges of breaching a restraining order

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Katie Price dodges another court date as bankruptcy hearing put back to 2023 - Yahoo News

WWE again finds itself in an unenviable position, with its creative plans struck down by injuries to Randy Orton and Cody Rhodes, and creative bankruptcy preventing it from having replacements ready to step in and headline one of the most significant pay-per-views of the year.

Its solution? The same as it always is: Recruit two Superstars from yesteryear to bring star power to its shows.

Brock Lesnar returned on Friday's SmackDown and will challenge Roman Reigns for the Undisputed WWE Universal Championship in the main event of SummerSlam on July 30 in a Last Man Standing match.

And John Cena will celebrate his two decades with the company Monday night on Raw and is expected to jump-start a program that will culminate at the same event at Nissan Stadium in Nashville, Tennessee.

None of this should be surprising to fans familiar with the WWE product over the last decade, but it does beg the question: What will this most recent run have in store for the returning icons and the fans who tune into the company's television programming?

But first, how we got here.

A Reliance on Part-Time Stars

By 2011, it became clear WWE was no longer the star-making machine it had been in previous years.

The company looked to The Rock, who returned from a seven-year hiatus for a two-year program with Cena. The Undertaker and Triple H popped up on TV to hype major PPV matches, and even Kevin Nash made his presence felt in a desperate attempt by the company to bolster its young roster with marquee names.

A year later, Lesnar would return to the company, the latest in a trend of WWE officials increasingly relying on part-time performers to help sell major PPVs rather than taking the time and effort to create new stars to run atop the card for the future.

The retirements of Undertaker and Triple H, and a return to Hollywood for The Rock, ensured that subsided somewhat, but Lesnar continued to pop up from time to time, typically as WWE prepared for WrestleMania or SummerSlam.

Then Cena, once a critic of The Rock for failing to appear consistently to show his love for WWE and its fans, found success of his own in movies and television and took on a part-time schedule that has seen him pop up when needed for a big-time bout.

On one hand, it makes sense that an entertainment company would recruit its most recognizable stars to help sell a major production. If Universal or Fox Studios wanted to sell a passion project by Hollywood's biggest director, they would turn to a Tom Hanks, Sandra Bullock, Julia Roberts or George Clooney to help do that, even if they had not been regularly acting to that point.

The same goes for WWE, which recognizes the need for an attraction and calls in the heavy hitters for its most prestigious extravaganzas.

On the other hand, it does prevent the company from building its current crop of stars to slide into that role in the future. With only Reigns really standing head and shoulders above everyone else as the undisputed star of the promotion, where would WWE go if he retired or was injured?

There is no other Rock, Cena or Lesnar walking in the door anytime soon, and nor is there anyone on the roster right now who could popup a decade from now for a one-off match and create the impact these men do when they return to WWE programming.

Thus, it becomes paramount WWE utilizes the names it has on its roster in a way that helps them achieve that level of stardom so that it has a pool to select from when it needs major attractions years down the line.

While Lesnar vs. Reigns hardly helps with that situation, Cena could be poised to confirm one of the brightest young stars as the future of the company with his upcoming return.

What to Expect from Cena, Lesnar

On June 6, Cena posted an image to his Instagram account of a black boot smothering the United States Championship.

As is typically the case on that particular account, it appeared to be a subliminal message over what fans can expect from the all-timer when he returns to WWE programming.

Sure, the 45-year-old is scheduled to celebrate two decades with WWE on Monday's Raw, but would it surprise anyone if a certain egotistical young U.S. champion interrupted the legendary competitor and jump-started a feud that could culminate at SummerSlam?

Theory has been one of the breakout stars of WWE over the last few months and recently took to his own Twitter account, in connection with a recently released photoshoot, to seemingly taunt Cena.

Pairing the 24-year-old against the biggest star WWE has produced since the Attitude Era is a brilliant move, should that be the direction the company chooses.

It not only gives Theory the rub of sharing the ring with an internationally recognized professional wrestler but also a bonafide Hollywood star.

Such a pairing announces to the world that WWE believes in the younger man as the next face of the company and you should, too.

It is the type of reaffirmation that stars across the roster could have used over the years to better strengthen their credibility and prepare them to jump into a program in case of emergency, such as the one WWE currently faces with the absences of Rhodes and Orton.

Most importantly, a match with Cena provides Theory with one of those early highlight-reel moments he can pair with his WrestleMania 38 match against Pat McAfee and show as proof of his ability to perform up to the moment, against high-profile opponents.

That, as much as booking, is important to a Superstar's credibility and the fans' perception of them as a big deal.

Lesnar and Reigns will have another heavy-hitting main event that leads to questions about WWE's reliance on that particular contest to draw fans when the audience has already been overexposed to it.

Thankfully, Cena vs. Theory is a match that may not grab as many headlines, but it could be the catalyst for the latter's rise and the start of a Hall of Fame career.

All thanks to a star such as Cena, who recognizes the importance of veterans in helping to establish a young performerjust as Kurt Angle and Chris Jericho did for him.

Read more:

Injuries, Creative Bankruptcy Force WWE to Turn to John Cena, Brock Lesnar - Bleacher Report

Ex-PC builder company Artesian Builds will soon see the company's inventory from their two US locations sold at auction to pay off debts which led to the company's bankruptcy filing. The lot includes several motherboards, processors, GPUs, and other components to release their stock to other companies.

Auction lots up for grabs include items (listed in order of quantity from lowest to highest):

IOGEAR KALIBER GAMING HVER PRO X mechanical keyboard review

Consumers should not expect to be able to bid for any of the above items as the company will have an auction via Zoom for the lots from their North Carolina and California locations to sell to the highest bid, with an increment bid of upwards of $5000 or higher. This will be advantageous for starting companies looking for the stock to build their products or established PC build companies to buy extra stock for cheap. Artesian Builds will also auction any leftover office equipment and tools left at the two locations. At the time of the close of Artesian Builds' bankruptcy, the court found the company still has $917,595 of leftover inventory.

The effect of the Artesian Builds consumer is the hundreds of outstanding orders that were still remaining at the close of business. It is reported that per the filed balance sheet a component of the California proceedings of the company's bankruptcy the unfulfilled orders from consumers to Artesian Builds were estimated to be a whopping $1.37 million dollars.

However, the most surprising auction item has nothing to do with computer parts. The last lot needing to be sold to cover the debt created by the company involves not only the company's name, domain, and registered trademarks but also customer and influencer lists tabulated by the company. This discovery can have a negative effect on those involved, as the private names of the influencers and customers are considered "subject to the requirement of appointment and review by a consumer privacy ombudsman." Even though accessing the data itself is not without some hefty difficulty, if that information is obtained, everything from email addresses and mailing addresses would be available for sale.

Last April, Artesian Builds officially filed for bankruptcy following a live stream where a raffle of a high-end gaming PC was held from the winner due to the person not having enough influence on social media, especially on the Twitch platform. From previous employees anonymously interviewed by the website PC Gamer, some feel that the actual destruction of the company was Noah Katz's "inexperience" in his role as CEO of the company.

As reported by PC Gamer, all debts being paid are listed in order of importance, starting with secured creditors and then unsecured creditors. Ex-employees will see some payment made, but it will fall after the secured creditors are paid their due. Consumers fall at the end of the line, listed as the unsecured creditors, and are unsure of the amounts that Artesian Builds will deliver to any who has lost money through the company's negligence. However, the impact of this legality is that there may not be any funds left to pay any affected customers, especially if the company does not have the funding to pay off the debts to banks and other secured creditors.

News Source: PC Gamer

Read more here:

Artesian Builds auctions thousands of PC components to pay off bankruptcy - Wccftech

Hyderabad:Telangana is on the brink of bankruptcy and in view of the central government and Reserve Bank of India curbs it is facing great financial difficulties. Under the permission given by the RBI to obtain a loan, Telangana has succeeded in getting a mere Rs. 4000 crore at the beginning of the current month.

The state was not allowed to participate in the bond auction scheduled for June 14 and June 28 which is leading to the state being on the brink of financial bankruptcy.

In the Bond auction to be held on the 28th, the state may get Rs.1000 crore.Even if the RBI allows the government to participate in the auction the state government shall only be getting merely 35% of the states total need of Rs.15000 crores.

It is being said that the state government till now has succeeded in getting 26.7 percent of the amount required.

The RBI instructed the states to decrease the subsidy given under the various welfare schemes and the RBI has given the same advice to Telangana.

Telangana and four states UP, Odisha, Jharkhand, and Kerala are expected to spend more on the welfare schemes in the next 3 years.

See the original post:

Telangana on the brink of bankruptcy due to Central Govt, RBI curbs - The Siasat Daily

When a foreign company is defrauded and goes bankrupt, severalconnections with Switzerland may exist. If the company has been thevictim of criminal acts committed by its corporate organs, it ispossible that these organs have used accounts in Switzerland todivert funds or to launder them. It is also possible that thecompany itself has assets in Swiss accounts that will have to berecovered in the foreign bankruptcy proceedings.

In cross-border fraud context, several proceedings may thereforebe necessary in Switzerland, not only to establish the liability oflegal entities and individuals, but above all to recover funds toreduce the damage caused. This will involve, for example, civil andcriminal proceedings against Swiss banks and their employees whoparticipated in the fraud or in the laundering of its proceeds.

In principle, the recognition of foreign bankruptcy decisionsleads to the initiation of auxiliary bankruptcy proceedings toliquidate the bankrupt's assets located in Switzerland by alocal administrator (the Swiss "ancillary bankruptcy" ormini-bankruptcy). However, since 2019, at the request of theforeign bankruptcy administrator and in the absence of Swisspreferred creditors, the Swiss competent court can waive theancillary bankruptcy proceedings, and authorize the foreignbankruptcy administrator to directly bring proceedings inSwitzerland.

Knowing the standing of the parties potentially involved(foreign bankrupt company, foreign bankruptcy administrator,ancillary bankruptcy administrator) is particularly important, asSwiss criminal law restricts the actions of the foreign bankruptcyadministration in Switzerland. Indeed, under Article 271 para. 1 ofthe Swiss Penal Code (PC) it is a crime for agentsof a foreign State to carry out acts on Swiss territory which underSwiss law are the prerogatives of Swiss authorities. Acts offoreign administrators in Switzerland may therefore constitute acriminal offense under Article 271 PC.

I. Action against a debtor in the civil courts

When a foreign bankruptcy administrator intends to act inSwitzerland against a debtor to recover assets located inSwitzerland, the question arises as to which of the bankruptcompany, the foreign bankruptcy administrator or the ancillarybankruptcy administrator can take action before the civil courts.This problem must be solved notably when the bankrupt company wantsto act against a Swiss bank for its potential liability in thefraud or the laundering of its proceeds.

First, it should be noted that the principle of territorialityapplies in Swiss bankruptcy law. Accordingly, foreign bankruptcydecisions have generally no direct effect on Swiss territory.

Whether the foreign bankruptcy administrator can act and seizeassets on behalf of the foreign bankruptcy estate in Switzerland isthen determined according to Swiss private international law, i.e.the Federal Private International Law Act(PILA).

Prior to recognition, the foreign bankruptcy administrator wouldonly be entitled to request recognition of the foreign bankruptcydecision and protective measures. In this context, case law isclear that the foreign bankruptcy administrator is not entitled tobring an action against a Swiss debtor or to file a claim in thebankruptcy of a Swiss debtor. The reason is that the acts mentionedwould circumvent the system designed by the PILA, which aimsnotably to give preference to creditors domiciled inSwitzerland.

However, even when the foreign bankruptcy decision is recognizedin Switzerland, the PILA and the case law of the Swiss FederalSupreme Court also strongly limit the scope of action of theforeign bankruptcy administrator in Switzerland. We can mention thefollowing hypotheses of actions:

According to the Swiss Federal Supreme Court, if the foreignbankruptcy administrator were granted the same powers as theancillary bankruptcy administrator, in particular the power tobring an action directly against a Swiss debtor, the admission ofthe action would have the effect of taking assets away from theSwiss creditors admitted to schedule of claims of the ancillarybankruptcy, which would be contrary to the purpose of the systemestablished by the PILA.

Therefore, when assets are in Switzerland and the foreignbankruptcy decision has been recognized, the enforcement of a claimcan take place through the following channels:

Thus, Swiss law takes a restrictive approach to the powers ofaction that a foreign bankrupt administrator may bring to recoverassets located in Switzerland through civil proceedings when theforeign company was victim of a fraud. It cannot itself actdirectly in Switzerland against its debtor, since this competenceis in principle exercised by the ancillary bankruptcyadministrator. The foreign bankruptcy administrator is drasticallylimited in its powers of action when it follows the classic path ofPILA (recognition of the foreign decision and subsequent opening ofancillary bankruptcy proceedings). The foreign administrator has,however, more proactive options, such as to request the assignmentof the claim or the waiver of the ancillary bankruptcy, which givethe foreign bankruptcy administrator more room for maneuver andcontrol.

II. Participation of the foreign bankrupt company in criminalproceedings

In addition to civil proceedings, the defrauded company willhave an interest in participating in criminal proceedings inSwitzerland against third parties who were part of the fraud or thelaundering of its proceeds. For example, when criminal proceedingsare initiated against a bank employee who took part in the fraud,it will be important for the company to access all the documentsgathered by the Public Prosecutor to obtain evidence in support ofactions for damages or other actions.

In Switzerland, the status of party to criminal proceedingsgives access to various rights, including the right to be heardprovided for in Article 107 of the Swiss Code of Penal Procedure(CPP), which includes notably the right to inspect the documentsrelating to the criminal proceedings, to take part in proceduralacts and to submit requests for further evidence to be taken.

According to Article 104 para. 1 CPP, the plaintiff isconsidered a party to the criminal proceedings and therefore hasthese procedural rights.

The question of whether the foreign bankrupt company can beconsidered a plaintiff must be examined in the light of severalprovisions of the Swiss Code of Penal Procedure.

According to Article 118 para. 1 CPP, a plaintiff is a personsuffering harm who expressly declares that they wish to participatein the criminal proceedings as a criminal or civil claimant.Indeed, in the criminal proceedings, the person suffering harm caneither request the prosecution and punishment of the personresponsible for the offense (criminal complaint) or requestcompensation for his damage (civil claim), or both (art. 119 al. 1CPP).

The concept of "person suffering harm" is thereforeessential in criminal law since it is a condition to be aplaintiff.

Article 115 para. 1 CPP defines the person suffering harm as aperson whose rights have been directly violated by the offense.Therefore, the person who wants to be a plaintiff must prove thatthe damage suffered is plausible and that there is a link betweenthe damage and the offense. When a property-related offense iscommitted against a company, only the latter suffers damage and canclaim to be the injured party. This is not the case for itsshareholders or beneficial owners.

Therefore, when the company goes bankrupt, it may be grantedplaintiff's status if it can prove that its rights have beendirectly violated by the offense under investigation.

In a decision rendered in 2017, the Geneva Court of Justiceexamined the capacity to appeal of a bankrupt Lithuanian bank whosestatus as plaintiff was disputed.

First of all, the offenses denounced by the foreign bankruptcompany - unfair management and money laundering - could be invokedby it, since it had been directly injured by those allegedacts.

In the case at hand, the bankruptcy administrator of theLithuanian company had obtained in Switzerland the recognition ofthe Lithuanian bankruptcy decision and the opening of an ancillarybankruptcy, administered by the Swiss Financial Market SupervisoryAuthority. The latter had assigned, according to article 260 DEBA,to the foreign bankruptcy administrator, the rights that the estateof the ancillary bankruptcy had renounced to enforce.

According to the Court of Justice, despite the assignment, theforeign bankrupt company was still a "person sufferingharm" within the meaning of Article 115 CPP and a plaintiffaccording to Article 118 CPP. It therefore remained a party to theproceedings and had a right to support the prosecution and toappeal against the order to abandon the proceedings issued by thePublic Prosecutor.

Swiss law therefore adopts a more flexible approach in criminalproceedings than in civil proceedings, as it directly allows thedefrauded foreign company to be a plaintiff against the third partywho committed the offense.

The foreign company that goes bankrupt can therefore act on itsown without the need to obtain the approval or the assignment ofrights by the ancillary bankruptcy. In this way, it acquiresprocedural rights that could prove advantageous, particularly whenthere are parallel proceedings in Switzerland that require theprovision of evidence.

It should be pointed out that - even if the foreign bankruptcompany is a plaintiff in the criminal proceedings - the ability toobtain civil compensation for the damage caused by the offense(whether before the criminal court or in a separate civil action)remains with the ancillary bankruptcy administrator or the foreignbankruptcy administrator in case of assignment or waiver of theancillary bankruptcy.

In conclusion, the bankruptcy of a foreign company with links toSwitzerland is likely to trigger numerous administrative, civil orcriminal proceedings.

Swiss law offers several legal avenues to obtain compensation incase of fraud.

The powers of the parties entitled to intervene in theseproceedings - in particular the foreign company or the foreignbankruptcy administrator - will depend on the type of proceedingsand the specific circumstances of each situation. Coordinationbetween the various proceedings and the many actors involved, aswell as the establishment of a recovery strategy, is thereforecrucial to increase the chances of recovering assets.

A different version of this article had already beenpublished in FIRE Magazine.

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

See the article here:

The Powers Of The Foreign Bankrupt Company And The Foreign Bankruptcy Administrator To Act Before The Swiss Authorities In Case Of Fraud -...

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

If youre looking for a way out from under overwhelming credit card bills and other debt, bankruptcy could wipe out your balances and offer a fresh start. But filing for bankruptcy has downsides, so you might consider debt consolidation as a way to simplify your finances and pay off debt faster.

Debt consolidation and bankruptcy are two very different things, though both can provide relief when debt seems hopeless. Understanding the differences between debt consolidation and bankruptcy can help you make the right choice if you find yourself buried under bills.

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Debt consolidation is a financial strategy for paying off debt. Though it might be considered a form of debt relief, you wont be forgiven any of your debt; instead, you trade it all in for one new loan, often at a much lower cost.

Debt consolidation might involve getting a personal loan from a bank or credit union, taking out a home equity loan or line of credit (HELOC), or applying for a 0% APR balance transfer credit card to swallow up your existing balances.

Another form of debt consolidation is offered by consumer credit counseling agencies: debt management. If youre having trouble paying your debts and your credit score isnt good enough to qualify for a debt consolidation loan, you can enlist a credit counselor to work with your creditors to make your debt easier to pay off.

There are a few good reasons to pursue debt consolidation:

Lets take a closer look at a few types of debt consolidation and how they work:

Debt Consolidation Loan: You could reorganize your debts by replacing them with a single debt consolidation loan, which might take the form of a personal loan or home equity loan. You pay off your existing debts, then roll them into the consolidation loan. Debt consolidation simplifies your debt and can cut your interest costs if you qualify for a lower APR (annual percentage rate) than youve been paying on your previous debts.

Credit Card Balance Transfer: If you have good enough credit, you might be able to consolidate debt by transferring your existing balances to a 0% APR balance transfer credit card. Note that the cards are interest-free for a limited time, so you need to make sure you pay off the entire debt before the regular (and often high) APR kicks in.

Debt Consolidation Through Credit Counseling: A nonprofit consumer counseling agency can put you on a debt management plan that will consolidate your debt into one big monthly payment to the agency, which then pays your creditors. You get points for making on-time payments, your credit score wont be affected, and you can save on interest and fees.

Instead of taking out a new loan or working with a credit counseling agency, you could try to renegotiate your debts with your creditors, maybe by asking for a payments pause or a lower interest rate. Theres no guarantee theyll say yes.

Another option is debt settlement, which involves working out a deal with your creditorseither on your own or with the help of a debt settlement companyto pay off your debt in a lump sum for less than you owe. Debt settlement can be risky and can hurt your credit, so its generally not the smartest option.

Bankruptcy is a legal procedure that can wipe out your debts and give you a clean slate, or provide you with a plan to pay off your creditors within three to five years.

The downside is that bankruptcy can stay on your credit report as a black mark for up to a decade, making it harder for you to take out new loans. Not all debts can be discharged, or eliminated, through bankruptcy; back child support, alimony, past-due taxes and student loans usually cannot be erased.

Bankruptcy has consequences and can be an emotionally difficult and lengthy process. However, if your debts are unmanageable and unpayable and you want to make a fresh start at rebuilding your finances, bankruptcy might be the best choice.

Bankruptcy is a form of legal protection for borrowers; its part of the social safety net for consumers who get into money trouble or suffer financial setbacks. But many people might prefer to find another way to deal with overwhelming debt.

Americans usually have two bankruptcy options to choose from: Chapter 7 and Chapter 13 bankruptcy.

Chapter 7: This type of bankruptcy is intended for people who lack the financial means to make debt payments. Chapter 7 puts a halt to collection efforts and can eventually cancel many kinds of debt. In exchange, the debtor must agree to give up some personal property so it can be sold to pay off creditors, though most assetsincluding home equity, cars and jewelryare usually exempt.

Chapter 13: Often called repayment plan bankruptcy or wage earners bankruptcy, Chapter 13 requires you to agree to make payments to your creditors over the course of three to five years. Once the repayment plan is completed, remaining debt may be forgiven. Debts typically discharged through Chapter 13 bankruptcy include credit card balances, medical debts and other unsecured personal debts.

As part of the bankruptcy filing process, debtors are required to take a credit counseling course. But turning to a nonprofit consumer credit counseling agency is a good idea long before you decide to seek protection from your creditors through the bankruptcy courts.

Credit counseling can help you evaluate your options and explore whether a debt management plan could help you get out of debt without having to go through the bankruptcy process.

Other alternatives to dealing with debt through bankruptcy include: selling some belongings youre no longer using to help pay down what you owe; taking on a part-time job or side hustle to boost your income; and borrowing money from family and friends to repay your creditors. But be careful with that last one, because if you dont pay back a friend or relative you risk ruining the relationship.

Bankruptcy marks you in the eyes of the financial industry as a borrower who is not creditworthy, and that negative mark stays on your credit report for seven years in the case of Chapter 13 bankruptcy, and 10 years when you file Chapter 7.

Meanwhile, debt consolidation can help improve your credit. A debt consolidation loan pays off your existing balances and leaves you with one monthly bill. A loan with a lower APR can allow you to save money and find extra room in your monthly budgetmaking your debt easier to handle.

To answer that question and make the right choice for your situation, compare your options side by side.

When debt is a problem, you may find that neither debt consolidation nor bankruptcy is the right solution.

Heres another idea: Consult a consumer credit counseling agency. These nonprofit organizations can help you understand your options and will recommend a plan to get you out of debt.

If you dont have good credit and may have trouble qualifying for a lower-APR debt consolidation loan, a credit counselor can provide expert advice and work with you to come up with a debt management plan. The counselor also can help you explore whether bankruptcy is the best choice for your situation.

Free, No-commitment Estimate

Filing for bankruptcy is a multistep process that requires you to pull together tax returns and other documents, attend mandatory credit counseling sessions, fill out lots of forms, and go to the U.S. bankruptcy court for your ZIP code with your paperwork and required fees (again, $338 for Chapter 7 and $313 for Chapter 13) in hand.

You can file for bankruptcy on your own, without an attorney, but thats not recommended. Free legal assistance may be available if you qualify.

Whether you file for Chapter 7 or Chapter 13 bankruptcy, the process is complex and can take anywhere from a few months to more than a year.

In a Chapter 7 proceeding, the judge might require you to surrender some personal possessions to pay creditors. In a Chapter 13 case, youll have to agree to a repayment plan to give back some of the money you owe over the next few years.

A bankruptcy attorney can navigate you through it all, and help you understand what to expect.

A Chapter 7 bankruptcy stays on your credit report as a black mark for up to 10 years. A Chapter 13 bankruptcy will remain on your credit report as negative information for as long as seven years.

Theres no specific limit on the number of times you can file for bankruptcy, though you can receive debt relief from bankruptcy only once every several years.

For example, if you filed for Chapter 7 bankruptcy, you cannot discharge debts again via Chapter 7 for eight years. If you used Chapter 7 previously, you must wait four years to try to discharge more debts via Chapter 13.

Rolling your debts into a lower-interest debt consolidation loan is trickier if you have bad credit. A lender may look at your lackluster credit score, assume youll have difficulty repaying the loan and reject your application. The best debt consolidation loans for bad credit tend to come from online lenders that are more willing to say yesif youre willing to accept a higher interest rate.

See more here:

Debt Consolidation Vs. Bankruptcy: What Is The Difference? Forbes Advisor - Forbes

Where to even begin? No mixing of hyperbole in declaring this week as momentous. Id like to say were all bloody agreed on that.

Starting the week sharing jokes at AEWs expense with their interim champions and ended it with a new interim CEO & chairwoman of WWE. Unprecedented times in the wrestling world as we verge on a potential major shift.

I normally ramble into proceedings with these intros, but with the seriousness of the first topic this weeks column is already long enough. So no beating around the bush, skipping the pleasantries today as we get straight in to the biggest talking point of the week.

Hush Money, Dont Say A Word

of course he is.

The image of a live crowd cheering and bowing to Vince McMahon amid hush money allegations will stay with me for a long time.

An ego driven company CEO & Chairman on a power trip in the middle of the ring. Stood telling us the most important word of the WWE Then. Now. Forever slogan is Together. Before dropping the mic in a strutting off statement that hes not going anywhere.

The Wall Street Journal dropped a bombshell of an article on Wednesday. Reporting on pending WWE Board investigations into Vince McMahon for paying an alleged $3m settlement to keep an ex-employee quiet about their sexual relationship.

Link To The Wall Street Journal Article

The boards investigations not just finding a copy of the agreement, but also emails detailing how the ex-employees salary was doubled after the relationship began. The former was paid for out of Vinces own money, but the increased salary? Yeah, that came out of company funds.

The board discovering multiple other McMahon settlements from over the years, as well as misconduct from other company heads such as John Laurinaitis for whom its quoted that the ex-employee was passed to like a toy.

On Friday the WWE said Vince McMahon had voluntarily stepped back from his responsibilities. Saying Stephanie McMahon would be stepping in as interim CEO and chairwoman, but Vince will still retain his role and responsibilities related to WWEs creative content.

Then came the announcement that Vince would be opening Friday nights SmackDown. A move that according to Fightful Select had multiple staff members and top talent reacting from confused to enraged backstage. Whilst Vince was in a reportedly happy mood, no-selling that anything was wrong and going along business as usual.

Just think about that for a second. The boss himself accused of paying off employees of which hed had sexual relations with breaking the companys code of conduct multiple times over in the process then went on national TV in character and flexed his muscles to the board.

Thats insanity. No denials, just a I cant be taken down like that, you should remember that this is my house! statement of power. His appearance promoted to garner a rating, trying to grab a viewership number with the man in the middle of sexual misconduct allegations.

Even Succession wouldnt write this for its unbelievability.

The man bathing in his cult-like appreciation whilst surrounded in an aura of dissatisfaction. Vince vs The World a tried and trusted tactic. Making it out like theres bad people just out to get him, like hes done nothing wrong. The worst part is this will work, a section of his viewership will eat it all up and become adamant supporters.

I fully expect Vince will do whatever he can to never have to face accountability. But is that a mistake for what is now a public trading company? This isnt the same family business WWE that faced the steroids trial in the 90s. Were talking having to convince boards and investors that Vinces image wont damage their profits.

What weve seen so far is an early stage reaction to a scandal like this, shifting pieces about to help negate the seriousness of the allegations. More chess moves will come as this really is just the beginning. You know the seriousness of this given the way the reactions have played out. There has been no denial, just promises that this is being met with full cooperation.

Call me pessimistic, but I dont expect much to alter no matter the findings. How can that man still be in power? Ill say, answering my own question with the words I phrased it with. A change has been called for within WWE for years, instead weve seen more doubling down on the older generation running the shop.

John Laurinaitis controversial rehire emblematic of the toxic culture we were previously told WWE had moved on from. Sean Ross Sapp reporting multiple accounts of staff and wrestlers alike feeling uncomfortable with his return to the company.

The story from AJ Lees book immediately coming to mind. A man is his 60s telling a 20-something old girl that guys wanted to hang out instead of having sex with her and that was a problem. PISS OFF with that shit.

Ember Moons recent account in an interview with Chris Van Vleet, talking of classes teaching the female talent how to make more revealing gear and to dress sexy like Mandy Rose. Toni Storm opening up about having to fight off getting stripped down to her underwear on national TV. THIS IS A CULTURE.

Nothing will change until the top does.

Going off a report from Fightful Select, Stephanie McMahon is apparently beloved by those she works with. Something which is fantastic to hear, but the moves so far tell me the chess pieces are all being moved to protect the King. How much change will there be when none of these actions are actually there to instigate it?

Not forgetting we havent even gotten to what on Earth all the other NDA agreements will reveal. Arguing in defence of Vince against this story being serious is almost a pointless exercise, because youre going to have to do that with all the other hush settlements uncovered.

Never mind if already known stories from Vinces past rear their heads once more with the spotlight on bright: WWEs first female referee Rita Chatterons accusations of rape (LINK) and being accused of forcing himself on a tanning salon worker in 2006 (LINK) come to mind.

The degree of reaction tells me how severely this has hit too big to be swept under the rug but the fear of McMahon whipping up his base into a support frenzy is all too real. Wielding the company control of creative he went on national TV and delivered a Wolf Of Wall Street-Succession threat consider the alarm bells of concern fully ringing.

Qualifying For The Bank

Good luck with this tonal shift, Imp

Hey, do you remember the tranquil waters of this past Monday? The sound of the waves lapping, the promise of ladders buckling. Its the most ladder-ful time of the year! I was thinking. Oh the innocence! How its cloud eventually rains in a downpour and drowns us all.

Thinking back to my excitement of adding another multi-person climbing kerfuffle to my routine list of re-watches. Im always hyped for new ladder standouts, having worn out the proverbial internet tapes of Money In The Bank 2011 and initial WrestleMania editions.

The chaos, the carnage, the crashes. Feed me those inventive ladder stunts and Ill keep gleefully eating like the constant consumer that I am. The promise of promotion literally hanging above the heads of employees as they fight it out for a contract in a suspended briefcase. If this was in a film I might think this match concept was saying something but who cares? I love every second!

In a Battle Royal movie Id be the guy watching with a paid subscription.

The prestigious briefcase game being afoot also results in WWEs telly shows themselves getting a jolt of short term direction. The lads and lasses doing what they can to qualify in exciting back n forth contests, as its slowly unveiled who well see climbing the ladders this year. A top notch excuse to feature awesome talents launching themselves at each other in the name potential glory.

This week featured an absolute banger between Seth Rollins and AJ Styles, with the former right on trajectory to solidify himself as Monday Nights focal villain. Arguably the favourite to walk away with the briefcase, especially after his stellar work elevating Cody Rhodes to the star WWE so desperately needed him to be.

This match with Styles playing out so perfectly. Constantly changing control and moment, before ending in a manner that really nailed the feeling that it could have been either one of them that walked away with the win. Seth was just able to better AJ on this day, setting him up nicely for Ladders In Las Vegas.

Talking of favourites, Liv Morgan also continued her strong run of momentum as she successfully teamed with Alexa Bliss to qualify. Morgan really developing into a fan favourite as she increasingly shows her ability to improve and impress. Money In The Bank either the perfect time to crown her rise more substantially, or set her into a programme to sink her teeth into.

I say this as if WWE are thinking that long term ahead right now. Even if they are looking forward only a tad, setting the wheel in motion to cement Liv Morgans elevation seems the clearest of objectives.

RAW was mostly forgettable this week, but we did get some enjoyable Money In The Bank set up.

The Road Rages On!

Why Christian? Why?? Oh yeah its AEW, we know exactly why. This has been set up for months.

Now to shift on to AEW and try remember that mid-week feeling of watching a top notch wrestling show with no controversy surrounding it oh wait no, this week started with the whole Jeff Hardy thing! How am I forgetting?

What an exceptional episode of Dynamite for my birthday. Always knew Tony would come through! He reads my cliff notes on the invoices after all.

Huge pops for Jericho vs Ortiz, the amazing visual of Wardlow destroying 20 lads, a downright impressive match between Ospreay and Dax, Tanahashi & Moxley bleeding into JAS & Suzuki-Gun versus the BCC, Miro in his dominant return honeymoon period, Hangman Page attacked by the new IWGP Heavyweight Champion and an exceptional tag team ladder main event that finally saw Christian turn heel.

A show so great you have to rattle down the card like Excalibur himself. A nonstop run as we zoned in on the Forbidden Door and all the unique cross-promotional set up that comes with it. Next week promises more NJPW names as previously unannounced spots get filled, but this week filled in the direction for some already announced names.

The biggest of those being the return of Orange Cassidy to challenge for Will Ospreays IWGP United States Heavyweight Championship. The Essex man only winning the title at Dominion last Sunday, but already finding himself having to defend on previously forbidden shores. A huge return pop for the denim clad man, a ridiculously over wrestler who just so happens to be perfectly beatable for New Japans new champion.

I guested on the Keeping It Strong Style podcast this week before Dynamite had aired and voiced my lack of excitement at the prospect of an Ospreay vs Trent match. A match against the Freshly Squeezed one himself though? Count me all the way in! PAC vs Orange Cassidy is one of my favourite AEW matches, an astoundingly fun bout I consistently return to. The perfect encounter for those times where you just need a smile on your face.

Orange Cassidy may not be the biggest dream name you could conjure up, but his match with Ospreay is damn sure going to be an entertaining one. Ill be eating that one up as much as the live crowd.

Its Sting!

Shortly after this photo, Kyle ORiley with a 10/10 baseball bat to the dick sell

A perfectly harmlessly fun edition of Rampage this week. If anything a welcome change of pace following the insanity that was Friday.

An hour where I was able to turn my brain off and enjoy some solid wrestling. Ending on a lovely pop for the returning beloved Icon. A delightful note to close on given everything else.

Darby Allin and Bobby Fish with a solid main event, the former set on getting his revenge on those dastardly ReDragon boys. But it was all a set up for the man himself to return and swing a bat into Kyle ORileys penis. Setting up Darby for our full circle moment: Coffin Dropping onto Bobby Fishs ankle as its wrapped in a steel chair.

Revenge exacted for the duo taking out Sting, now them boys are in real trouble!

Elsewhere we had Jade Cargill remaining dominant with a win over the loveable Willow and Max Caster answering the call to deliver a line on the NDA news given they were recording the night the news broke.

There wasnt really a lot to talk about off of this weeks Rampage. Heres some more wrestling if you would like to see it. An enjoyable hour of wrestling, the easiest watch of the week. But also the least consequential if you happen to miss it.

RAW Grade Forgettable, but with a Rollins vs Styles banger in the middleDynamite Grade Road Raging in style on the road to the Forbidden Door!SmackDown Grade Vinces hush money and creative bankruptcyRampage Grade A delightfully fun, easy watch to end the week on

Comment below. Ill be here to reply and chat this weird wrestling world.

Toodles, chaps.

Contact Imp:Twitter Email [emailprotected]

Previous columnsImps Week In Wrestling The Forbidden Door Swings and Championship WinsImps Week In Wrestling Banks & Naomi, MJF/Wardlow and Disappointing the fans

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Imps Week In Wrestling Vince McMahon: Hush Money and Creative Bankruptcy - Wrestling Headlines

Mere hours after TPC Group announced it filed for bankruptcy protection in a Delaware courtroom, Beaumont attorney Brent Coon held a news conference to explain how his firm would continue working to recuperate funds for more than 1,000 Southeast Texans who filed claims against the chemical plant.

Coon said lawsuits filed against the company also included other groups affiliated with TPC, such as engineering firms and chemical companies.

A large number of Coons clients still have damage and unpaid medical bills and have yet to receive any compensation, he said.

After the explosion occurred, TPC initially set up a compensation program to pay property owners that program lasted a couple of months, then TPC quit that program, he said. The reason they quit the compensation program was because they ran out of the money to do so.

Payouts began soon after a major loss of containment of butadiene produced a vapor cloud that ignited at 12:56 a.m. Nov. 27, 2019. The explosion caused damage to homes, schools and other structures in the immediate area, with debris as far as Bridge City. A second explosion the following day forced a mandatory evacuation for a four-mile radius.

Coon said his firm has been looking over TPCs financial records for a while, and also has been working with procure bankruptcy counsel for more than a year in the event TPC filed for bankruptcy.

The company, he said, filed thousands of thousands of pages of documents requesting relief. That, he added, meant TPC would still be setting aside huge amounts of money for ongoing operations and business relationships.

TPC released a statement soon after the bankruptcy announcement saying unprecedented events such as COVID-19, supply chain issues, higher energy costs and Winter Storm Uri caused financial strain. The 2019 explosion was also cited.

We have been working diligently to address the impacts of these events in close coordination with our financial stakeholders to consider the best path forward for our business and our stakeholders to ensure we strengthen our capital structure and position us to be a stronger, more competitive business, setting us up for long-term success and future growth opportunities, the company said in the statement.

To that end, today, TPC Group took the next step in our journey to secure a stronger financial future by filing for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code to begin the transformational recapitalization of our business. This process will allow us to expand upon the progress weve already made as we work to put TPC Group on the path to sustained, profitable growth and achieve the potential we know our business has with an appropriate underlying financial structure.

TPC said the action will allow for stronger business in the future.

TPC Group is dedicated to continually improving all aspects of our operations and driving our environmental performance to meet or exceed regulatory requirements and industry practice, the statement said. Our commitment to community, being a good neighbor, and operating safely and in an environmentally sound manner is unwavering.

Coon disagreed.

TPC hasnt been good to our community, he said. They abandoned our community.

Link:

TPC Group files for bankruptcy with thousands still awaiting payouts; attorney Brent Coon responds - Port Arthur News - The Port Arthur News

This entry is part of Nelson Mullinss ongoing Bankruptcy Basics blog series that is intended to address foundational aspects of bankruptcy for non-bankruptcy practitioners and professionals. This entry will discuss lease rejection in chapter 11 bankruptcy cases.

One critical component of chapter 11 bankruptcy cases is the debtors ability to assume or reject certain executory contracts, including leases of nonresidential real property. Under section 365 of the Bankruptcy Code, a chapter 11 debtor has 120 days (currently 210 days pursuant to an extension in the CARES Act) to assume or reject leases. This assumption/rejection window can be extended by court order for an additional 90 days. Any further extension requires agreement of the debtor and the landlord.

Assumption of a lease in chapter 11 allows for the lease to remain ongoing throughout the life of the bankruptcy case. In order to assume a lease, the debtor must cure any arrears and show adequate assurance of future performance under the lease.

Similarly, a debtor may assume and assign a lease. Assumption and assignment may occur under the Bankruptcy Code even if the lease includes a clause preventing assignment. Assumption with an intent to assign still requires curing all arrears and a showing by the assignee of adequate assurance of future performance. If cure and adequate assurances are satisfied, the lease will be assumed under the current terms of the lease.

If a lease is not assumed in the timeframe provided by the Bankruptcy Code, it shall be deemed rejected. Rejection results in the termination of the lease. Upon rejection, either by affirmative action by the debtor to reject the lease or by expiration of the assumption window, the lease is deemed terminated as of the date that the debtor filed for bankruptcy. The landlord may retake possession of the property upon rejection and is owed breach damages to be calculated starting from the petition date.

Rejection damages are subject to a statutory cap under Bankruptcy Code section 502(b)(6). This statutory cap is intended to ensure that potentially large landlord rejection damages do not disproportionately affect other unsecured creditors upon rejection. The cap is the greater of (1) one years rent or (2) the rent for 15 percent, not to exceed three years, of the remaining term of the lease. Typically, the cap takes the place of mitigation factors, as courts treat the imposition of the cap as a form of mitigation, meaning that other mitigation issues are not considered when calculating the capped damages.

In sum, the Bankruptcy Code allows for a debtor to assume or reject commercial leases in a chapter 11 bankruptcy. The debtor can also freely assign leases, provided the cure and adequate assurances of future performance are provided. The decision to reject a lease may result in substantial, albeit capped, rejection damages claims for any landlord whose lease is rejected.

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Bankruptcy 101: Lease Assumption, Assignment, and Rejection - Bankruptcy Basics for New and Non-Bankruptcy Attorneys - JD Supra