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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]

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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.

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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.

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New Consumer Bankruptcy Reform Act Implications and the 2023 Congressional Outlook

Troutman Sanders

Finance and Restructuring Partner Deb Kovsky represents secured and unsecured creditors and other key stakeholders in bankruptcy cases, out-of-court workouts, and distressed M&A transactions.

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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.

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Bankruptcy Court Issues Ruling on Ownership of Celsius Account Assets

PBWT

The concept of “property of the estate” is important in bankruptcy because it determines what property can be used or distributed for the benefit of the debtor’s creditors.

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A Primer on Avoidance Actions in the Context of Crypto Bankruptcies

PBWT

A big question in these cases is whether there will be any money to satisfy unsecured creditor claims. If there are funds to distribute, then the creditors’ claims will become more valuable, and the cases will become even more interesting.

Debtor 61
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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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3 Things To Do When a Client Files for Bankruptcy

Taurus Collect

Under the law, creditors cannot communicate with the debtor if they have filed for bankruptcy. If that is the case, it becomes impossible for them to pay back all their creditors. Under Chapter 13, the business will follow a court-approved plan to pay back the creditors.

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Five Burr Attorneys Named to Lawdragon’s 2022 “500 Leading Bankruptcy & Restructuring Lawyers” List

Burr Forman

In addition, he serves as the Atlanta Office Managing Partner while practicing in the firm’s Creditors’ Rights and Bankruptcy and Lending Practice Groups. Hall was named in the Bankruptcy & Creditors’ Rights, including Litigation specialty.

Lawyers 52
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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….

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Troutman Pepper Weekly Consumer Financial Services Newsletter

Troutman Sanders

To help you keep abreast of relevant activities, below find a breakdown of some of the biggest events at the federal and state levels to impact the Consumer Finance Services industry this past week: Federal Activities. State Activities.

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How to Prevent Bad Debts in 2023. Tips from a Debt Collector

Debt Recoveries

As a result, it is significantly safer than an unsecured creditor in the case of insolvency. . How to Prevent Bad Debts in 2023. Tips from a Debt Collector .

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Solvent Debtors Must pay the Contractual Post-Petition Interest Rate on Unimpaired Claims

ABI

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] 5] The reorganization plan classified these claims as “unimpaired,” [6] and consequently, such creditors were deemed to accept the plan and not entitled to vote on the plan. [7] 7] Generally, under the Bankruptcy Code, once a debtor files for bankruptcy, an unsecured claim no longer accrues interest. [8]

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Ex TV Channel boss banned from being a Company Director

UK debt collections

But five unsecured creditors – owed a total of £347,860 – are unlikely to see the return of any of their money. A Plymouth based businessman has been banned from being a company director for eight years.

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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]

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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.

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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.

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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?

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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.

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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.