Another Bankruptcy Court Weighs in on Postpetition Interest

PBWT

2] In this case, unsecured creditors argued that they were “impaired” because the plan did not require the debtor to pay postpetition interest at the contractual rate or a higher state law judgment rate. [3]

Section 1126 of the Bankruptcy Code and the Dangers of Sleeping on Your Rights as a Creditor

PBWT

This is especially true if you’re a creditor in a chapter 11 case. Two mortgage companies held more than $800,000 in secured claims, and 33 creditors had unsecured claims totaling about $1.1 Just seven unsecured creditors voted on the plan, all in favor.

Sixth Circuit Rules that Monthly 401(k) Contributions can be Excluded from “Projected Disposable Income” Under a Chapter 13 Plan

Foster Swift

A Chapter 13 bankruptcy plan requires a debtor to satisfy unsecured debts by paying all “projected disposable income” to unsecured creditors over a five-year period.

What Are Debentures? Everything You Need To Know

Hudson Weir

In the case of insolvency or liquidation, a floating charge would give the lender priority over unsecured creditors in the order of repayment. Preferential creditors are next, including employees owed arrears of wages and holiday pay.

Your Commercial Debtor Just Went Bankrupt — Can You Still Get The Money You’re Owed?

Debt RR

Even in a best-case scenario — as a secured creditor — you could be waiting up to six years to receive payment. These will contain a listing of the amounts owed to each creditor, whether secured or unsecured. If the customer purchased something from you within 20 days of filing for bankruptcy, you might be able to elevate your claim to priority status over other unsecured creditors. For some creditors, that level of involvement might just be too much.

The Final Say: Conversion from Chapter 11 to Chapter 7 is Not a Given

PBWT

Unsecured Creditors Committee et al. , Bankruptcy Court for the District of New Mexico confirmed a plan that had been proposed by the unsecured creditors' committee.

Putting Personal Money Into A Limited Company: What You Should Know

Hudson Weir

When businesses do enter liquidation, by putting personal money into a limited company, if director’s loan accounts are in credit, then the directors count as creditors. Be aware though, that they are classed as unsecured creditors.

Using a Preliminary Injunction to Restrain Debtor’s Funds

FFGN COLLECT NY

In order to obtain a preliminary injunction on a debtor’s accounts, a creditor has to show a: Likelihood of success on the merits in the underlying case. Let’s say your company has a corporate debtor that owes your company a sizable debt.

What If My Income Increases During Chapter 13?

Sawin & Shea

Additionally, if your Chapter 13 plan pays back all of your unsecured creditors, the court will likely not require you to make increased payments. Filing for Chapter 13 bankruptcy can be both challenging and stressful.

Chapter 13 Bankruptcy and Student Loans

Sawin & Shea

This stay prohibits creditors, including your student loan lenders, from contacting you to collect any debts. Reduces payment amounts: Amounts paid to your student loans and other unsecured creditors will often be significantly lower through a Chapter 13 bankruptcy.

Crypto Exchange Platforms Grapple with Consequence of Filing Bankruptcy

PBWT

Since companies facing bankruptcy usually try to keep an anticipated filing quiet in order to prevent creditors from taking adverse actions, customers may unexpectedly lose control over their crypto assets.

What Is Nonexempt Property In Bankruptcy, And Why Does It Matter?

Debt Free Colorado

They then exercise control over the merchandise sold to satisfy creditors. They will sell them and use the revenues to pay for the bankruptcy’s fees , charges, and expenditures before paying creditors. ” The Trustee has the authority to seize and liquidate non-exempt property to benefit creditors. Additionally, creditors may take such property if a judgement against the debtor is entered. You’ve undoubtedly heard of bankruptcy.

Cutting through the insolvency paperwork jargon – A guest blog by Menzies LLP

CICM

In this week’s guest blog, the Menzies LLP Creditor Services team highlight the areas you should be looking for on receipt of insolvency paperwork and, most importantly, whether there will be a dividend. The priority of payments in a company insolvency determines where creditors rank in terms of likely return. Below is a non-exhaustive list of priority: Secured creditors – with a fixed charge. Secondary preferential creditors – some HMRC arrears. Unsecured creditors.

Failed Private School was owed £51k in Unpaid School Fees

UK debt collections

The church run Ockbrook School owed creditors more than £2 million pounds when it was forced to closes its doors due to financial issues this summer. The School has over 140 creditors listed and administrators have warned they may never get what they are owed.

The Return of the Crown Preference – A blog by Menzies

CICM

The Enterprise Act 2002 came along, and we saw this abolished and replaced with the Prescribed Part – a pot of money ring fenced for the unsecured creditors. This was a redistribution of the wealth as it meant HMRC’s debt became ‘unsecured’ like everyone else, but they still got a return from floating charge assets. At the same time, it was seen as fairer because all the other unsecured creditors also received a slice. A long, long time ago….

It’s Getting Chilly: The “Cryptowinter” Marches On

PBWT

In addition, one major cryptocurrency exchange platform recently warned investors that, in the event of bankruptcy, its users’ assets may be treated as property of the estate, which would leave users in the unfortunate position of being treated as unsecured creditors.

What Happens to Investment Real Estate in Bankruptcy?

Sawin & Shea

The process involves liquidating non-exempt assets property to pay creditors. You can surrender the property to creditors and discharge the debt associated with the investment property. Filing for bankruptcy is an important step for many individuals looking to overcome debts.

Recent Decision on Derivative Standing by a Creditors’ Committee to Challenge a Lender’s Liens

PBWT

In many chapter 11 cases, creditors’ committees can play a vital role in maximizing the recoveries of unsecured creditors. But the powers of creditors’ committees are circumscribed by both the Bankruptcy Code and case law.

Burr & Forman Expands Across the Southeast with Addition of Five Attorney

Burr Forman

Burgess joins the firm’s Orlando, FL office as Associate in the Creditors’ Rights & Bankruptcy practice group. Burr & Forman LLP is pleased to announce the addition of Andrew T. Spence, Rita M. Mairs, Andrew T. Petrey, Kelsey E. Burgess, and Kate A. Hamilton. Andrew T.

As Chapter 11 Bankruptcy Filings Surge, Here’s What Creditors Need to Know to Protect and Enforce Their Rights

Fraser

Creditors of a bankrupt company must be aware of the various deadlines and procedures that govern the chapter 11 process in order to protect and enforce their rights. For creditors to maximize their recoveries, they must stay informed and take action during a bankruptcy proceeding.

International Debt Recovery Report reveals trickiest countries to recover from

UK debt collections

International Debt Recovery has always been a challenge for those involved in the importing and exporting of goods. The collect of a debt in Los Angeles is obviously going to be more of a headache than debt collection in London.

Bankruptcy Chapter 7 vs 13: Which Is The Best Option?

Debt Free Colorado

Consider your income, assets, creditors, expenditures, and your ability to pass the means test while selecting between Chapter 13 and Chapter 7. Creditors are prohibited from contacting you after your petition is filed. While bankruptcy law forces you to sell some assets to repay unsecured creditors, the majority of Americans keep all of their property because of bankruptcy limits on the categories of assets that may be used to settle debts.

Losing Momentum:  Houston Bankruptcy Court Holds that Make-Whole Claims are Not the Economic Equivalent of Unmatured Interest Subject to Disallowance; Solvent-Debtor Exception Lives

PBWT

2] The Fifth Circuit also instructed Judge Isgur to determine whether the creditors were entitled to post-petition interest at the contractual default rates under the “solvent-debtor” exception. [3]

Dealing With Debt From COVID-19

Debt Free Colorado

Below you’ll find some strategies for working with your creditors and deciding which bills are the most important if you can’t pay them all. Reach out to your creditors. How do I pay my Bills if I’m out of Work due to a Stay-At-Home Order?

Debtor Allowed to Make Voluntary Contributions to Retirement Fund While Repaying Creditors

ABI

American Bankruptcy Institute Law Review Staff. . In In re Marlena Joy Pizzo , the United States Bankruptcy Court for the District of South Carolina held that a debtor may voluntarily contribute to her retirement plan while paying creditors under a bankruptcy plan. [1] Siegan, an unsecured creditor, objected to the plan arguing that Pizzo should be required to pay creditors in full before being allowed to fund her retirement plan. [2] Jennifer Hepner.

Critical Vendors Aren’t Immune from Lawsuits to Recover Preferential Transfers

PBWT

Accordingly, critical vendors often recover more on their pre-petition claims than other unsecured creditors. In other words, critical vendors could receive a full recovery, while other creditors only receive a fraction of what they are owed.

A Primer On Administrative Expense Claims From An Oil And Gas Bankruptcy Case

PBWT

Some of Whistlers’ creditors also filed an involuntary chapter 11 petition against Whistler. The claim drew objections from Whistler, one of its secured creditors, and the unsecured creditors’ committee.

Will Bankruptcy Erase ALL of My Debt?

Sawin & Shea

There are exemptions depending on the property and how essential it is, but anything considered nonexempt will likely be sold to help pay off your creditors. That money will go to your Chapter 13 trustee, who will then distribute it amongst your creditors.

What Are Preference Shares During Insolvency?

Hudson Weir

The next steps for an insolvent company working with an IP could include entering into administration, a company voluntary arrangement (CVA) or a creditors’ voluntary liquidation (CVL). The first priority is to repay all secured creditors, unsecured creditors and preferential creditors.

What Should Construction Contractors Do When a Property Owner Files For Bankruptcy?

Jimerson Firm

When a property owner files for bankruptcy, a “Notice of Commencement of Case” will be sent to all creditors listed in the owner’s bankruptcy petition to let them know that the bankruptcy has been filed and to provide deadlines for key events in the bankruptcy.

Court Dismisses Bankruptcy Case to Enable Debtor to Seek a Paycheck Protection Loan

PBWT

The debtor’s motion to dismiss drew creditor opposition. With respect to the DIP loan, the debtor noted that as an unsecured creditor, RT was in the same position as if the debtor had a secured loan outside of bankruptcy.

All in a Day’s Work. Belk Achieves Confirmation of Pre-Packaged Plan in Record Time

PBWT

” [1] Critically, the plan leaves all unsecured creditors unimpaired. We posit a few of those here: Broad Creditor Support. Leaving trade creditors unimpaired, while not legally required, is an essential pragmatic consideration.

Can I Put My Property in My Spouse’s Name and File for Bankruptcy?

Sawin & Shea

In most cases, a judge will reverse the transfer, especially if it is apparent that it was done to evade creditors. If the property is taken, the trustee responsible for selling the property to pay your creditors will pay your spouse the value of their interest in the property.

Can I Put My Property in My Spouse’s Name and File for Bankruptcy?

Sawin & Shea

In most cases, a judge will reverse the transfer, especially if it is apparent that it was done to evade creditors. If the property is taken, the trustee responsible for selling the property to pay your creditors will pay your spouse the value of their interest in the property.

HMRC facing £65bn Debt Collection challenge

UK debt collections

The position is further complicated as from 1 December 2020 HMRC is now treated as a preferential creditor in any insolvency , meaning it is entitled to be paid ahead of unsecured creditors and floating charge lenders.