Category Archives: Bankruptcy

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adversary proceeding

A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court. A nonexclusive list of adversary proceedings is set forth in Fed. R. Bankr. P. 7001.

assume

An agreement to continue performing duties under a contract or lease.

automatic stay

An injunction that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.

bankruptcy

A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).

bankruptcy administrator

An officer of the judiciary serving in the judicial districts of Alabama and North Carolina who, like the U.S. trustee, is responsible for supervising the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure statements; monitoring creditors' committees; monitoring fee applications; and performing other statutory duties. Compare U.S. trustee.

Bankruptcy Code

The informal name for title 11 of the United States Code (11 U.S.C. 101-1330), the federal bankruptcy law.

bankruptcy court

The bankruptcy judges in regular active service in each district; a unit of the district court.

bankruptcy estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.)

bankruptcy judge

A judicial officer of the United States district court who is the court official with decision-making power over federal bankruptcy cases.

bankruptcy petition

The document filed by the debtor (in a voluntary case) or by creditors (in an involuntary case) by which opens the bankruptcy case. (There are official forms for bankruptcy petitions.)

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chapter 7

The chapter of the Bankruptcy Code providing for "liquidation,"(i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.)

chapter 9

The chapter of the Bankruptcy Code providing for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts).

chapter 11

The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)

chapter 12

The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," or a "family fisherman" as those terms are defined in the Bankruptcy Code.

chapter 13

The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)

chapter 15

The chapter of the Bankruptcy Code dealing with cases of cross-border insolvency.

claim

A creditor's assertion of a right to payment from the debtor or the debtor's property.

confirmation

Bankruptcy judges's approval of a plan of reorganization or liquidation in chapter 11, or payment plan in chapter 12 or 13.

consumer debtor

A debtor whose debts are primarily consumer debts.

consumer debts

Debts incurred for personal, as opposed to business, needs.

contested matter

Those matters, other than objections to claims, that are disputed but are not within the definition of adversary proceeding contained in Rule 7001.

contingent claim

A claim that may be owed by the debtor under certain circumstances, e.g., where the debtor is a cosigner on another person's loan and that person fails to pay.

creditor

One to whom the debtor owes money or who claims to be owed money by the debtor.

credit counseling

Generally refers to two events in individual bankruptcy cases: (1) the "individual or group briefing" from a nonprofit budget and credit counseling agency that individual debtors must attend prior to filing under any chapter of the Bankruptcy Code; and (2) the "instructional course in personal financial management" in chapters 7 and 13 that an individual debtor must complete before a discharge is entered. There are exceptions to both requirements for certain categories of debtors, exigent circumstances, or if the U.S. trustee or bankruptcy administrator have determined that there are insufficient approved credit counseling agencies available to provide the necessary counseling.

creditors' meeting

see 341 meeting

current monthly income

The average monthly income received by the debtor over the six calendar months before commencement of the bankruptcy case, including regular contributions to household expenses from nondebtors and income from the debtor's spouse if the petition is a joint petition, but not including social security income and certain other payments made because the debtor is the victim of certain crimes. 11 U.S.C. 101(10A).

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debtor

A person who has filed a petition for relief under the Bankruptcy Code.

debtor education

see credit counseling

defendant

An individual (or business) against whom a lawsuit is filed.

discharge

A release of a debtor from personal liability for certain dischargeable debts set forth in the Bankruptcy Code. (A discharge releases a debtor from personal liability for certain debts known as dischargeable debts and prevents the creditors owed those debts from taking any action against the debtor to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding the debt, including telephone calls, letters, and personal contact.)

dischargeable debt

A debt for which the Bankruptcy Code allows the debtor's personal liability to be eliminated.

disclosure statement

A written document prepared by the chapter 11 debtor or other plan proponent that is designed to provide "adequate information" to creditors to enable them to evaluate the chapter 11 plan of reorganization.

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equity

The value of a debtor's interest in property that remains after liens and other creditors' interests are considered. (Example: If a house valued at $100,000 is subject to a $80,000 mortgage, there is $20,000 of equity.)

executory contract or lease

Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed. (If a contract or lease is executory, a debtor may assume it or reject it.)

exemptions, exempt property

Certain property owned by an individual debtor that the Bankruptcy Code or applicable state law permits the debtor to keep from unsecured creditors. For example, in some states the debtor may be able to exempt all or a portion of the equity in the debtor's primary residence (homestead exemption), or some or all "tools of the trade" used by the debtor to make a living (i.e., auto tools for an auto mechanic or dental tools for a dentist). The availability and amount of property the debtor may exempt depends on the state the debtor lives in.

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insider (of individual debtor)

Any relative of the debtor or of a general partner of the debtor; partnership in which the debtor is a general partner; general partner of the debtor; or a corporation of which the debtor is a director, officer, or person in control.

insider (of corporate debtor)

A director, officer, or person in control of the debtor; a partnership in which the debtor is a general partner; a general partner of the debtor; or a relative of a general partner, director, officer, or person in control of the debtor.

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joint administration

A court-approved mechanism under which two or more cases can be administered together. (Assuming no conflicts of interest, these separate businesses or individuals can pool their resources, hire the same professionals, etc.)

joint petition

One bankruptcy petition filed by a husband and wife together.

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lien

The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.

liquidation

A sale of a debtor's property with the proceeds to be used for the benefit of creditors.

liquidated claim

A creditor's claim for a fixed amount of money.

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means test

Section 707(b)(2) of the Bankruptcy Code applies a "means test" to determine whether an individual debtor's chapter 7 filing is presumed to be an abuse of the Bankruptcy Code requiring dismissal or conversion of the case (generally to chapter 13). Abuse is presumed if the debtor's aggregate current monthly income (see definition above) over 5 years, net of certain statutorily allowed expenses is more than (i) $12,850, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $7,700. The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income.

motion to lift the automatic stay

A request by a creditor to allow the creditor to take action against the debtor or the debtor's property that would otherwise be prohibited by the automatic stay.

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no-asset case

A chapter 7 case where there are no assets available to satisfy any portion of the creditors' unsecured claims.

nondischargeable debt

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Bankruptcy Basics Glossary | United States Courts

MEDINA, Ohio (WJW) A Medina propane company that shuttered suddenly, leaving customers out in the cold, filed for bankruptcy last week, according to a statement issued Wednesday.

Its customers some of whom pre-paid thousands of dollars for propane service that wont be fulfilled may now see refunds through the companys Chapter 7 bankruptcy liquidation process, according to the statement.

In a Chapter 7 claim, customers claims take priority over other creditors, according to the statement. Through its bankruptcy proceedings, a trustee will be appointed to liquidate the companys assets, paying back its customers first.

The decision to file was made by Thriftys management only after long and serious consideration of all the options available to Thrifty, it reads. Thrifty was confronted with a cash flow crisis caused by several factors both internal and external, and governmental regulatory actions. Thrifty was ultimately forced to close its doors as a result of those actions.

Attorney General Dave Yost last month sued the propane supplier, citing numerous consumer protections violations. His office received more than 100 consumer complaints about Thrifty Propane this year alone.

In 2018, when Thrifty Propane was struggling to keep up with customers orders, FOX 8 reported on hundreds of other complaints against the company.

This summer they were trying to get people to give money. They sent emails stating they wanted you to pre-buy and only pay half of it so, to me, that was a major red flag, customer Lesley McDonald told FOX 8. I realize we live in a really unfair world, but they need to be held responsible.

The company in 2018 had about 50,000 customers in nine states, FOX 8 reported.

Read more here:

Cash crunch caused Thrifty Propane to file for bankruptcy: statement - WJW FOX 8 News Cleveland

Via AG Metal Miner

Is it all doom and gloom for Chinese steel manufacturing? Its hard to tell at the moment. Indeed, China finds itself in a precarious place financially. Whats more, a sizable section of global financial and stock analysts have predicted the crises will only get worse as the country prepares to face its toughest winter yet.

But that is only half the story. A financial downward spiral hit the Chinese economy hard. Among the most widely hit industries are its steel and iron ore sectors. The present crisis started about a year ago. Thats when a leading Chinese property developer, Evergrande, announced that it could no longer support some $300 billion in liabilities.

While that alone was enough to set off a panic, the Chinese authorities reaction time only worsened the situation. A few months ago, the Chinese government announced a fresh fiscal stimulus. However, many experts say it was too little too late. The countrys industries were already reeling from a fresh COVID-19 outbreak, frequent power cuts, and the Ukraine invasion.

What cant be argued is that China no longer appears like the global powerhouse it was just a year ago. Now global media, like this article in Forbes, say that what China is experiencing is a textbook illustration of how a financial crisis unfolds.

With every passing day, the Chinese economy gets weaker. And despite last-minute infrastructure spending by the government, they may not achieve their real economic growth rate goal of 5.5%.

The Chinese steel industry and those companies supplying it with raw materials like iron ore now face a bleak future. As they head into the second half of the year, the steel manufacturing industrys profitability has already dropped massively. In fact, less than 20% of companies announced a profit in July. When compared with the 80% who enjoyed profitability before March, its easy to see the grim outlook. In recently released forecasts, only about five of the 25 domestically listed steel companies estimated a rise in their profits for the first half of the year.

China is not only one of the worlds biggest steel manufacturers but also its biggest steel consumer. It took the mantle of the largest steel producer back in 1996, but production reached a record 1.07 billion tons as recently as 2020. Despite these impressive numbers, domestic companies account for around 95% of Chinese steel consumption. Without them, the steel simply has nowhere to go.

At present, Chinas steel production capacity is 1.2 billion tons a year, with annual consumption hovering around 1 billion tons. However, a lack of interest from real estate developers after the real estate crisis has caused many projects to shut down, reducing steel uptake. After all, real estate and auto manufacturing are some of the biggest steel consumers in the country. Meanwhile, around 29% of Chinese real estate companies claim to be nearing bankruptcy.

When the worlds biggest staple in steel manufacturing, China Baowu Steel Group, issued a warning at an internal meeting over the great challenges presented by tumbling sales, falling prices, and declining profitability, it raised a lot of red flags. In response, Chinese officials continue to try solution after solution.

Along with the fiscal stimulus, the government also set up a US $3 billion (20 billion yuan) state-owned China Mineral Resources Group. The aim was to jockey itself into a bargaining position in the world steel manufacturing market. This market remains dominated by four mining giants: Rio Tinto Group, BHP Group, Fortescue Metals Group, and Vale.

So, is 2022 the end of Chinese steel? According to a major section of analysts, the answer is yes. These men and women feel that Chinas demand for steel has peaked, and all that remains is a slow downward spiral.

But with Chinas financial crisis, the Politburo, Chinas chief policy-making body, is still fumbling over various counter-measures to their steel manufacturing woes For example, it recently said that local and provincial governments should take the lead in dealing with financial strains, which many see as just another example of passing the buck.

By Sohrab Darabshaw

More Top Reads From Oilprice.com:

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Chinese Steel Manufacturers On The Brink Of Bankruptcy - OilPrice.com

On September 19, 2022, the U.S. Bankruptcy Court for the Western District of Pennsylvania found that secured lenders could not hide behind a consent and a release to avoid the review of the commercial reasonableness of a pre-bankruptcy foreclosure sale. Prepetition, the debtor was a manufacturer of nutrition bars, protein bars and other baked good for various brands. KIND Operations was one of the debtors major customers. While the debtor, at various times, had substantial operations, at the time of its bankruptcy filing it was a non-operating shell company with no employees or assets. It did however have almost $30 million in debt.

Within a year prior to the bankruptcy filing, the debtors prepetition secured lenders, Cadence Bank, N.A. and Bank Hapoalim B.M., and others allegedly manufactured a private foreclosure sale of substantially all of the debtors assets at a below market price. After the chapter 11 case was converted to chapter 7 and the trustee assigned various claims to KIND, KIND commenced various adversary proceedings against the secured lenders, asserting claims for civil conspiracy, aiding and abetting breach of fiduciary duty, violation of Article 9 of the UCC because the foreclosure sale was not commercially reasonable, and avoidance of the pre-petition foreclosure sale as a fraudulent transfer. The lenders moved to dismiss on the ground that a consent and a release executed by the debtor in connection with the prepetition foreclosure sale barred the claims.

The bankruptcy court, finding that KIND stood in the shoes of the prepetition debtor and had no greater rights than the debtor, stated that a majority of the claims could potentially be dismissed. While there remained an issue as to whether the consent and the release could be avoided, and while the court believed that claims sounding in civil conspiracy and aiding and abetting a breach of fiduciary could be barred by the general releases (if not avoided), the court found that the advance blanket waivers and releases were unenforceable as to the Article 9 sale because a banks duty to conduct a commercially reasonable sale is not waivable by [certain] contract terms and that an agreement provision attempting to expunge a commercial reasonableness requirement is per se manifestly unreasonable. While the lenders argued there was no advance waiver in this case, the court disagreed because the consent and the release were drafted and executed before the foreclosure sale. Thus, the court concluded that the lenders could not hide behind the consent and the release to avoid a review of the commercial reasonableness of the pre-bankruptcy foreclosure sale.

With respect to the other state law claims (civil conspiracy and aiding and abetting a breach of fiduciary duty), the court declined to dismiss them, finding they could be avoided as fraudulent transfers. While KIND did not specifically seek to avoid the consent and release in its pleadings, the court found that KIND did seek to avoid the pre-petition foreclosure sale, and the consent and release were integral to that transaction. The court found, if appropriate, it could collapse multiple transactions into one integrated transaction. If the prepetition foreclosure sale was ultimately avoided, the consent and release would also be avoided. Accordingly, the court denied the lenders motion to dismiss as it related to the Article 9 violation claim, and deferred ruling on the appropriateness of dismissing the other state law claims. The court did state that, if the lenders ultimately prevailed in their defense to the fraudulent transfer claim, the civil conspiracy and aiding and abetting a breach of fiduciary duty claim would be dismissed.

The case is KIND Operations, Inc. v. Cadence Bank, N.A. (In re PA Co-Man, Inc.), No. 21-ap-2061 (Bankr. W.D. Pa. Sept. 19, 2022). KIND is represented by Bernstein-Burkley, P.C. Cadence Bank, N.A. is represented by Riemer & Braunstein LLP and Buchanan Ingersoll & Rooney PC. Bank Hapoalim B.M. is represented by Herrick Feinstein LLP and Dentons Cohen & Grigsby, P.C. The order is available here.

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Pennsylvania Bankruptcy Court Finds That Consent and Release Do Not Protect Against Wrongful Foreclosure Claim - JD Supra

Republican candidate for Virginias 7th Congressional District Yesli Vega, who has campaigned on a theme of fiscal responsibility, filed for personal bankruptcy more than a decade ago, the Prince William Times first reported, and one of her biggest debts was student loans.

Vega has accusedher Democratic opponent incumbent Abigail Spanberger and President Joe Biden of reckless spending.

Court records obtained by News4 show Vega and her husband, Rene, filed for bankruptcy in Maryland in 2009. The Vegas had liabilities of more than $96,000. About $2,500 was owed in Maryland and Virginia taxes, but nearly half of that total almost $46,000 was for unpaid student loans.

Vega has been sharply critical of the presidents student loan relief program. She also recently ran an ad with her father saying shed cut federal spending.

Spanberger said the bankruptcy disclosure reveals inconsistencies in Vegas positions.

The reality of what we continue to see with my opponent are examples of her hypocrisy and examples of where the ideas and the things that she advocates for are very different from her own lived experiences, Spanberger said.

In a written statement, Vega explains she and her husband once ran a small real estate business. She blames the recession for theirfinancial woes.

Washington, D.C., Maryland and Virginia local news, events and information

She goes on to say:There is no comparison between my husband and I suffering the consequences of filing for bankruptcy and working to rebuild our lives, and Joe Biden and Abigail Spanberger illegally forcing people who did not go to college to pay off the debts of those who chose to earn advanced degrees just because they think it will benefit them politically.

Political analyst Stephen Farnsworth said word of the Vegas bankruptcy is bad news for the campaign but may not actually influence that many voters because many are already firmly aligned.

Theyre either very much in the Democratic camp or the Republican camp and they forgive their side and have no forgiveness for the other, Farnsworth said. "The issue of this latest disclosure is not helpful to the Vega campaign, and for the sliver of voters who might be genuinely undecided at this point, this could be another reason to decide one way or the other.

Vegas full statement:

My husband and I had a small real estate business, just the two of us. During the Great Recession in 2008, like many other people, we really struggled. Sadly, as the markets collapsed under [Barack] Obama and Biden, our small business went under, and we were forced into bankruptcy. I know a lot of other people who are struggling under similar circumstances today and I understand their fear and pain because Ive lived it, too. There is no comparison between my husband and I suffering the consequences of filing for bankruptcy and working to rebuild our lives, and Joe Biden and Abigail Spanberger illegally forcing people who did not go to college to pay off the debts of those who chose to earn advanced degrees just because they think it will benefit them politically.

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Congressional Candidate Critical of Loan Forgiveness Sought to Have Student Debt Cleared Via Bankruptcy - NBC4 Washington

ARLINGTON, Va., Oct. 17, 2022 /PRNewswire/ -- Bloomberg Tax & Accounting today announced the release of a new Tax Management Portfolio, Employee Benefits in Bankruptcy. Authored by James D. Newell, William H. Schorling, and Mark Pfeiffer of Buchanan Ingersoll & Rooney PC, and Matthew D. Clyde of Cozen O'Connor, P.C., the Portfolio addresses the interplay of benefits and bankruptcy law.

The Portfolio offers guidance for the frequent instances in which the goals of the Employee Retirement Income Security Act of 1974 (ERISA) are in conflict with the goals of the United States Bankruptcy Code (the Bankruptcy Code). While ERISA is designed to encourage the continuation and maintenance of voluntary private pension plans for the benefit of their participants and to provide for the timely and uninterrupted payment of pension benefits, the Bankruptcy Code is designed to provide a fresh start to honest but unfortunate debtors unable to pay their obligations.

This Portfolio addresses the impact of insolvency and bankruptcy on the termination of pension and welfare benefit plans and the treatment of pension and welfare benefit plans and claims in bankruptcy. The interplay of benefits law and bankruptcy has resulted in significant litigation. The Portfolio addresses the court decisions, especially when the courts have disagreed.

"We are proud to develop one of the industry's most comprehensive and up-to-date portfolios to provide direction regarding the intersection of bankruptcy and pension law," said author James Newell. "While the two areas are often in conflict, the new portfolio delivers practitioners of the legal and tax industries with the timely information needed to make informed decisions that maximize the returns to their clients."

"When the economy falters, more employers may choose or be forced into bankruptcy," said Heather Rothman, vice president of analysis & content, Bloomberg Tax & Accounting. "The expert guidance provided by the authors of this Portfolio gives tax practitioners the information they need to understand obligations and options related to ERISA plan benefits and plan termination in and outside of the bankruptcy arena."

To schedule a Bloomberg Tax product demonstration, visit http://onb-tax.com/TENl50LbPsl.

About Bloomberg Tax & Accounting Bloomberg Tax & Accounting provides practitioner-driven research and technology solutions that deliver timely, strategic insights to enable smarter decisions. From our unparalleled Tax Management Portfolios to technology designed to streamline the most complex planning and compliance scenarios, we deliver essential news and analysis, practical perspectives, and software that help tax and accounting professionals around the globe mitigate risk and maximize business results. For more information, visitBloomberg Tax.

SOURCE Bloomberg Tax & Accounting

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Bloomberg Tax Introduces New Portfolio Addressing Employee Benefits and Bankruptcy - PR Newswire

As a jury in Connecticut Wednesday announced damages totaling nearly $1 billion against conspiracy theory-spreader Alex Jones, the far-right personality proclaimed his poverty.

Aint going to be happening, aint no money, Jones asserted on his livestream.

Few believe that, of course. One expert testified in an earlier trial that Jones and his companies were worth between $130 million and $270 million. Still, Jones and his lawyers have taken extraordinary steps in an apparent effort to obfuscate the amount and location of his wealth, leading many to wonder if the plaintiffs in the Sandy Hook defamation cases will ever see even a fraction of the judgment they fought for years to win in court, assuming it holds after post-trial motions and appeals.

The families could collect Jones current assets and future earnings, as long as theyre willing to pay attorneys to chase down and untangle his financial dealings, financial dispute experts told Grid.

It becomes a cat-and-mouse exercise, said James E. Berger, a partner at DLA Piper and an expert in judgment enforcement and asset recovery. The legal tools available to plaintiffs can sometimes be plodding and slow, but the statutory tools are in place to ensure that a judgment creditor can find whats out there.

The familys attorneys seem plenty willing to try.

We are going to chase Alex Jones to the ends of the earth, Joshua Koskoff, an attorney representing the Sandy Hook families, told MSNBC.

Some assets would seem easy to spot. For instance, Jones owns five houses in the Austin, Texas, area worth a combined $7.5 million, Forbes reported. Early this year, as the defamation trials neared, Jones transferred one of these homes, with an estimated worth of over $3.5 million, to his wife, Erika Wulff Jones, according to reporting by the New York Post.

But Jones has tied up much of his wealth in a complex knot of entities, financial transactions and bankruptcy proceedings. Jones primary corporate entity, Free Speech Systems, declared bankruptcy in July, a move widely interpreted as an effort to frustrate efforts to collect legal judgments against him. Also, Jones and his relatives have set up an alphabet soup of holding companies, some of which appear to exist only on paper, with opaque purposes. The families claim Jones has used the entities to shuffle money around and mask his true wealth.

A map of companies connected to Alex Jones, their owners, and select financial transactions. Sources: Court filings; OpenCorporates. (Grid; Saul Loeb/ Getty)

As well, Jones has reportedly moved millions into a family trust and repeatedly refused to comply with court-ordered discovery about the transactions, further complicating efforts to understand his financial status.

Until bankruptcy proceedings for Free Speech Systems are sorted out, assets connected to Jones or his companies will be virtually untouchable by the families. But those companies and their financial activities will come under increased scrutiny by the families attorneys and investigators.

Hes going to have to maintain his lifestyle, and in order to do that, you have to have access to money, said Christopher Weil, managing partner at Mintz Group, an investigative firm that specializes in global asset tracking. Thats the interesting piece here paying attention to what he does and what kinds of fingerprints he leaves.

Youll find the assets, even if its a painstaking process, said Berger. Whenever you have a high-profile judgment debtor who is very well known, there are likely to be both public sources of information and people who may be willing to talk, all of which can be very helpful to investigators.

Weil concurred. A lot of people will probably be willing to speak, its just about finding them.

The historic judgment against Jones is the result of Jones years of claims that the shooting was a false flag. Regardless of the amounts Jones ultimately pays out, experts agreed the judgment will likely follow Jones and his businesses for the rest of his life.

Bankruptcy Judge Christopher M. Lopez has authorized increased scrutiny of Jones companies due to their lack of candor during the bankruptcy proceedings.

In a subpoena filed the same day as the Connecticut verdict, the trustee overseeing the Free Speech Systems bankruptcy demanded information from several of the companies controlled by Jones and his family members; from Jones father, David Jones; from a company controlled by his sister, Marleigh Jones Rivera; and from Jones personal trainer and associate Patrick Riley.

Riley has come under recent scrutiny in the case because of a $400,000 payment and transfer of warehouse operations to his company, Blue Asension [sic] Logistics. The trustees subpoena came in response to the court directing them to investigate Free Speech Systems books.

Jones and his attorney, Norman Pattis, did not respond to a request for comment, but Jones has denied the fraud allegations to other publications. Jones and his attorneys have claimed there is nothing unusual about the companies he has set up and that any recent transfers of money were for Jones estate planning.

Sensing opportunity, Jones used the verdict as an opportunity to shake his proverbial tin cup at his online followers, promising them their donations were shielded from paying out his awards.

The money you donate does not go to these people, it goes to fight this fraud, and it goes to stabilize the company, Jones said on his show Wednesday as the judgments against him were read aloud. As of Monday, Jones donation page had over $230,000 donations, with more flowing every couple of minutes.

Not so fast, said lawyers with whom Grid spoke.

The Sandy Hook families may be entitled to future earnings of Free Speech Systems. Theres a catch: Pursuing future earnings could tie the size of their payouts to the success of the InfoWars empire. The families may not find that tolerable.

The bankruptcy court could also order the company to liquidate its assets, which would then go to the families and any other creditors, according to Avi Moshenberg, an attorney representing the families in the bankruptcy case in Texas.

Jones is transparent about his strategy to counter the families collection efforts: delay, appeal, frustrate.

For hundreds of thousands of dollars, I can keep them in court for years, I can appeal this stuff, we can stand up against this travesty, against the billions of dollars they want. Its a joke, Jones told his audience last Wednesday.

Perhaps, say experts. But keeping that strategy going can be harder than it sounds.

Its very easy to build complex structures. Its very hard to maintain them, explained Weil of the Mintz Group. What we find is that the people who have helped maintain these things have to be paid. They have to be induced to continue to operate the [businesses]. If money is drying up, if theres a big award out there, that will cause problems, Weil said. Peoples professional and personal interests wont align anymore.

Thanks to Lillian Barkley for copy editing this article.

View post:

Alex Jones claims bankruptcy: How will Sandy Hook families get paid? - Grid

If you are like most people, when you borrow money, you have every intention of paying it back. When something unexpected happens, such as a serious illness or loss of job, you may find yourself unable to keep up with your payments. Bankruptcy may be an option available to help you eliminate your debt.

While declaring bankruptcy might seem like the perfect solution, bankruptcy ruins credit, makes it difficult to keep bank accounts and credit cards, can cause the loss of valuable possessions and makes it difficult to get on with the necessities of life, such as buying or renting a home or car, getting insurance or finding a job. In fact, most financial advisors look at bankruptcy as a last resort - one that should only be carried out with the counsel of an experienced bankruptcy attorney - and only when budgeting, credit counseling or other efforts have failed.

If you plan to file for bankruptcy protection, you are required to take a credit counseling class from a government-approved organization within 180 days before you file. You also have to complete a debtor education course before your debts can be discharged. For more information on these courses and to verify if the course is government-approved, please visit the United States Courts website at http://www.uscourts.gov/services-forms/bankruptcy/credit-counseling-and-debtoreducation-courses.

Generally, bankruptcies can be divided into two types: liquidation (Chapter 7) and reorganization (Chapter 13). These types are explained below.

Chapter 7 bankruptcy comes under the liquidation category. It's called liquidation because the bankruptcy trustee may take and sell ("liquidate") some of your property to pay back some of your debt. However, you may keep property that is protected (also called "exempt") under state law. Not everyone can file for Chapter 7 bankruptcy. For example, if your disposable income is sufficient to fund a Chapter 13 repayment plan, after subtracting certain allowed expenses and monthly payments for certain debts, you won't be allowed to use Chapter 7 bankruptcy. However, if you do file Chapter 7 it typically lasts three to six months.

In Chapter 7 bankruptcy, some of your property may be sold to pay down your debt. In return, most or all of your unsecured debts (that is, debts for which collateral has not been pledged) will be erased. You get to keep any property that is classified as exempt under the state or federal laws available to you (such as your clothes, car, and household furnishings). Many debtors who file for Chapter 7 bankruptcy are pleased to learn that they can keep some of their personal property.

If you owe money on a secured debt (for example, a car loan for which the car is pledged as a guarantee of payment) you have a choice of allowing the creditor to repossess the property, continuing your payments on the property under the contract (if the lender agrees), or paying the creditor a lump sum amount equal to the current replacement value of the property. Some types of secured debts can be eliminated in Chapter 7 bankruptcy.

There are several types of reorganization bankruptcies, but Chapter 13 is the most common type for consumers. In Chapter 13 bankruptcy you keep all of your property, but must make monthly payments over three to five years to repay all or some of your debt.

In Chapter 13 bankruptcy you must have a reliable source of income that you can use to repay some portion of your debt in order to file for Chapter 13. When you file for Chapter 13 bankruptcy, you must propose a repayment plan that details how you are going to pay back your debts over the next three to five years. The minimum amount you'll have to repay depends on how much you earn, how much you owe, and how much your unsecured creditors would have received if you'd filed for Chapter 7 bankruptcy. Your debts must be within limits set by the federal government. If you have secured debts, Chapter 13 gives you an option to make up missed payments to avoid repossession or foreclosure. You can include these past due amounts in your repayment plan and make them up over time.

Both Chapter 7 and Chapter 13 bankruptcy have many rules, and exceptions to those rules, regarding which debts are covered, who can file, and what property you can and cannot keep. Though bankruptcy can eliminate many kinds of debts, such as credit card debt, medical bills, and unsecured loans, there are many types of debts, including child support and spousal support obligations and most tax debts, that cannot be wiped out in bankruptcy. You may want to consult with an attorney if you have questions regarding the types of bankruptcy and whether it is a good option for you.

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Bankruptcy - Michigan

State-run Power Finance Corp. plans to file an insolvency plea against RattanIndia Powers 1350MW Nashik power plant within this year, said two people aware of the development.

The plant has a 8,000 crore debt, while PFC, the lead financier in the project, has an exposure of around 3,000 crore.

Most of our stressed plants have been resolved. The one which needs to be resolved is the Sinnar (Nashik) project. We have to take it to NCLT (National Company Law Tribunal). We will take it to NCLT this year. The debt of the project is about 6 crore per megawatt," said one of the two officials.

The Nashik thermal power plant in situated near Sinnar, 40 km from Nashik city in Maharashtra. The plant has an installed capacity of 1,350MW, with coal linkages from Coal India Ltd (CIL) subsidiaries.

The other official noted that PFC was in talks with the Maharashtra government to take over the stressed project but that the state government was not interested.

The officials noted that Nashik is the last major project where PFC is the lead financier and needs to be taken for insolvency.

The move follows PFCs successful resolution of the 600 MW thermal power project of Jhabua Power Ltd, situated in the Seoni district of Madhya Pradesh, last month.

The project was resolved through the Corporate Insolvency Resolution Process (CIRP) mechanism, with ownership being transferred to a consortium of NTPC Ltd, PFC, REC Ltd and other lenders.

Last month, PFC successfully resolved the countrys largest stressed asset in the power transmission sector South East UP Power Transmission Company Ltd.

The transaction involved a one-time upfront settlement amount of 3,251 crore along with a payout of part of the existing cash balance.

The board of PFC, on 12 August 2022, approved the creation of Power Asset Management Co. (PAMC) to take over stressed power assets.

PAMC will be a 50:50 joint venture between PFC & REC. The REC board also approved the proposal for subscribing to 50% equity in PAMC on 5 August.

PAMC will be a professional organization which will have the expertise to acquire stressed power assets and operate, maintain and complete them.

Other projects under CIRP include the 3,600MW KSK Mahanadi Power project and the 1,920MW Lanco Amarkantak Power project. Bids have come for Lanco Amarkantak but the committee of creditors (CoC) are yet to select the winning bid.

For KSK Mahanadi, PAMC, the consortium of PFC and REC, along with NTPC, plan to jointly submit a bid as the CoC has sought fresh bids for the project.

The process is being restarted, and there is time for bid submission till October-November. PFC, REC and NTPC together will put in the bid. We have kept NTPC as a partner in that. We need technical expertise also. We are a financial institution. We will look into the structuring, but the operations will have to be done by someone else, and so NTPC would also take a stake in that," said the first official mentioned above.

This is a decision to ensure that none of the projects are taken at throwaway prices," the official added. PMAC has also bid for the Amarkantak project.

Queries sent spokespeople for PFC, RattanIndia, NTPC, REC and the union ministry of power remained unanswered till press time.

rituraj.baruah@livemint.com

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PFC to take RattanIndia plant to bankruptcy court this year | Mint - Mint

New fees are soon to be introduced by The Insolvency Service in respect of the insolvency deposit required to commence a creditors bankruptcy petition and winding-up petition which will make it harder for many businesses to collect their debts.

Each bankruptcy or winding-up order administered by the Official Receiver is partly funded through a deposit paid by the creditor when filing the petition. The deposit contributes towards the Official Receivers administration costs, which include liaising with the bankrupt or insolvent company and investigating their assets. The Official Receivers remaining costs are recovered through fees charged against assets realised during the bankruptcy or winding-up proceedings. If there are sufficient assets to recover all the fees and costs, then the insolvency deposit is returned to the creditor that initiated the bankruptcy or winding-up proceedings.

The Insolvency Service has recently confirmed that the insolvency deposit for the purpose of obtaining a bankruptcy or winding-up order will be increasing in all cases where a petition is filed at court on or after 1 November 2022. Although, there will be no change to the adjudicator petition deposit where the individual debtor applies for their own bankruptcy.

Changes being made to deposits

The changes will mean the overall fee to issue the above petitions (including the court fee) will be:

Bankruptcy Petitions - increase from 1,292 to 1,802

Winding-Up Petitions - increase from 1,902 to 2,902

The Insolvency Service has clarified that these increases will be implemented as a direct result of the number of insolvency cases falling to a historically low level in recent years and the remaining cases having insufficient asset values to recover the Official Receivers administration costs. It is noted that the fees have remained the same since April 2016 and the current low level of cases is still a result of the temporary measures introduced regarding the presentation of winding-up petitions following the COVID-19 pandemic. These temporary measures were removed and the insolvency regime returned to its pre-pandemic position with immediate effect from 1 April 2022.

It is anticipated that the fee increases will enable the Insolvency Service to continue to administer and investigate insolvencies effectively, maximising outcomes for creditors whilst mitigating the risk of cost recovery being passed on to the taxpayer.

These fee increases may deter creditors from presenting bankruptcy and/or winding-up petitions. We are therefore encouraging creditors to take prompt action whether by way of issuing a bankruptcy or winding-up petition without further delay to take advantage of the current fee levels prior to the 1 November 2022 implementation date. For any creditors with outstanding debts or problematic debtors, there is benefit in acting prior to the 1 November 2022 date.

We can assist creditors and provide cost-effective advice following the fee increase announcement. We offer a fixed fee service in respect of the presentation of bankruptcy and winding-up petitions which may reduce the impact of the insolvency deposit fee increases.

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Significant Fee increases for Bankruptcy and Winding-Up Petitions on the way - Lexology