Troutman Sanders

JANUARY 29, 2024

As background, in 2002, the debtor and her then-spouse jointly filed a “no asset” Chapter 7 bankruptcy petition. She listed 45 unsecured creditors in her schedules of assets and liabilities, including the $7,400 credit card debt at issue. The court found this argument contrary to the plain text of the Bankruptcy Code.

Bankruptcy 98

Bankruptcy Chapter 7 bankruptcy Credit Card Debt Garnishment 98

PBWT

DECEMBER 13, 2020

Because it was solvent at confirmation, the debtor proposed to pay secured creditors in full, with interest at the contract rate, and general unsecured creditors in full, with postpetition interest at the “legal rate,” or a rate determined by the Court that leaves the creditors unimpaired. [1]

Unsecured Creditor 65

Unsecured Creditor Bankruptcy Debtor Creditors 65

ABI

JANUARY 22, 2023

the United States Court of Appeals for the Ninth Circuit held that solvent-debtors are required to pay unimpaired creditors their bargained for post-petition interest rate. [1] 7] Generally, under the Bankruptcy Code, once a debtor files for bankruptcy, an unsecured claim no longer accrues interest. [8]

Debtor 40

Debtor Bankruptcy Creditors Unsecured Creditor 40

FFGN COLLECT NY

SEPTEMBER 8, 2022

Let’s say your company has a corporate debtor that owes your company a sizable debt. You are concerned that the debtor is in poor financial condition, and that by the time a lawsuit commences and a judgment is obtained, the debtor will not have any assets available to satisfy the outstanding debt.

Debtor 52

Debtor Unsecured Creditor Judgment Creditors 52

CICM

JULY 14, 2023

It can be in cases where you know the debtor has funds and the threat of insolvency is likely to make them respond. However, if the Statutory Demand does not prompt payment and you proceed to insolvency, you may not recover your full debt if you are an unsecured creditor.

Unsecured Creditor 52

Unsecured Creditor Credit Management Collection Agencies Collections Agency 52

Jimerson Firm

FEBRUARY 11, 2022

The bankruptcy automatic stay prohibits all creditors from proceeding with collection actions, lawsuits, and enforcement of judgments against the debtor. Instead, the property owner debtor will have the opportunity to either assume or reject the executory construction contract as part of the bankruptcy. See 11 U.S.C. §

Construction 98

Construction Bankruptcy Secured Creditor Debtor 98

PBWT

MARCH 2, 2021

” [1] Critically, the plan leaves all unsecured creditors unimpaired. There are only a handful of examples, and for many debtors it is not an option. Leaving trade creditors unimpaired, while not legally required, is an essential pragmatic consideration. But make no mistake: the one-day bankruptcy is still a rarity.

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