THE BANKRUPTCY SITE » file bankruptcy

File For Bankruptcy

bankruptcysite — Thu, 22 Jul 2010 23:21:11 +0000

In the last few months, due to the recession, many of us have become very familiar with the words credit, debt, loans, interest, bankruptcy, etc. This is the worst crisis we have seen since the Great Depression. Many people sustained huge losses due to the still ongoing recession. In many cases the losses were so great that they had to file bankruptcy.

Mortgages being defaulted was what intitially led to all these problems. The rising rates of interest played a major role behind the growing amount of people defaulting on their mortgages . This in turn lead to the credit crunch which affected several industries. A major industry that was affected by the credit crunch was the automobile industry. That automobile which depends on credit sales such as hire purchase agreements and leasing, lost a large portion of its revenue and therefore started to crash.

The United States being one of the most important countries in terms of international trade eventually had its inevitable effect on the rest of the world. As a result, other countries had similar effects. Growing rates of unemployment, increase in prices of goods etc.People all around the world struggled to pay their mortgages and keep their houses.

Many people in the retirement age, existing off pension funds have been greatly affected due to the increase in prices of goods, high interest rates on their mortgages and had to give up their homes and again in many cases were forced to file bankruptcy.

With regard to filinf bankruptcy, financial experts are of the view that this is not absolutely necessary. The first measure a person can take to prevent having to file bankruptcy is to destroy credit cards. Credit cards are one of the major causes of excess debt. Credit cards encourage splurging and a majority of the public usuallylose control of their spending habits. This excess spending, results in huge credit bills and evetually results in having to bankruptcy files. Secondly, it is best to avoid buying more houses than one can afford. Interest on mortgage payments can be really expensive and in the event of the person not being able to pay, they will either have to give up the house or other securities, or file bankruptcy.

Most experts recommend credit counselling for people to become more aware the choices available to them.

Samsonite Retail Unit Filing Bankruptcy

Bankruptcy-Site.com — Sun, 06 Sep 2009 13:55:47 +0000

The world-renowned luggage maker Samsonite Co. retail stores have filed bankruptcy as part of its reorganization plans.

Filing bankruptcy by the company was due to the effects of the global economic recession which lead to consumers cutting down on their budget for leisurely trips. The company’s bread-and-butter is with travel gears which makes it a direct target of this situation.
Samsonite Co. has listed $1.5B in debts and $233M in assets as of July 31 in US Bankruptcy Court in Wilmington, Delaware based on reports.

The move of filing bankruptcy aims to repay the company’s creditors and lenders. There is a meeting scheduled to discuss about the handling of the store-closing sales as part of the reorganization. Further developments on the company’s bankruptcy filing are expected to happen within the next few weeks or months.

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The Bankruptcy Lawyer

Bankruptcy-Site.com — Sat, 29 Aug 2009 08:01:05 +0000

Bankruptcy process takes a great amount of time before it is granted to an individual or corporation seeking for it. In most cases, details of how a bankruptcy works appear to be complicated due to the fact that bankruptcy law is very technical in a sense. For an individual filing for bankruptcy, he has the option to represent himself during a bankruptcy proceeding given that he is able to provide a complete list of what is required by the court and at the same time, he is capable of speaking for himself once meetings are held with his creditors. Many individuals feel that they can only do the paper works but actual meetings where they need to answer several questions about the bankruptcy protection they seek are a bit difficult to do single handedly. Thus, a bankruptcy lawyer is hired to do these things.

A corporate bankruptcy process is a different scenario. Once a company files for bankruptcy, there are more documents that need to be gathered especially if the company is a large one and has been operating for many years since its establishment. A bankruptcy lawyer or lawyers are hired to take over the company’s bankruptcy requirements. Much like having an accounting team with a head who supervises his staff, a bankruptcy lawyer for large companies also work with other office heads of the company in order to expedite the collection of needed requirements. He also handles creditors who are keen on being paid back.

A bankruptcy lawyer is employed by individuals or corporations knowing that his assistance can make the whole bankruptcy process work smooth and fast. Not doing so may mean more time is wasted by not meeting the standard procedure required by bankruptcy law. Time wasted is tantamount to more money lost from expenses or longer court proceedings. This is the last thing that a company or individual can take especially during a financial crisis. With this, many bankruptcy firms are extending their services to whoever needs their assistance.

Filing for Bankruptcy

Bankruptcy-Site.com — Sat, 29 Aug 2009 08:00:00 +0000

A company or individual who decided to file for bankruptcy now faces the reality of the beginning of the bankruptcy process. Basic as it may seem, many are not aware of the initial steps in filing for bankruptcy. A legal process such as this requires careful steps to meet each requirements required by the courts.

A company or individual filing bankruptcy now hires a bankruptcy attorney to assist in the bankruptcy process. A personal bankruptcy is a little less difficult to manage since this involves the individual’s household assets and liabilities whose documents may take less time to gather. A corporation, on the other hand, that flies for bankruptcy will need more time to collect its financial documents due to a much bigger operations it is involved with. The financial documents include, but not limited to, list of all debts, assets, liabilities, tax documents and loans. Forms are also filled up which will be submitted along with all these financial documents.

The type of bankruptcy should be determined based on what grounds is appropriate for the petitioner(s). Chapter 7 may be filed by an individual, proprietor and corporations seeking for the discharge of most debts. Chapter 11 is for corporations and partnerships and Chapter 13 only caters to individuals. Both chapters generally require the petitioners to provide a re-organization or re-payment plan to be presented to the trustee and creditors for the hope of regaining their financial control of finances over a period of time.

As mentioned, a bankruptcy attorney may best represent a petitioner filing for bankruptcy for its technicalities. Missing out on important areas during the bankruptcy process will only cause delays and further financial expenses for the petitioners.

Consequences of Filing Bankruptcy

Bankruptcy-Site.com — Sat, 29 Aug 2009 07:49:00 +0000

Filing bankruptcy just to save a company from its financial problems is not a reasonable thing to do. Bankruptcy is not an easy way out. There is a lot information saying that bankruptcy poses certain effects which may not be entirely beneficial for your company.

Looking at bankruptcy’s good points, this is a guarantee that it will free the company from its financial debts. There will be no more harassment from creditors or long list of loans to pay even if the company is not earning anymore. This is if a company is granted a Chapter 7 type. In other cases, although some companies may not be eligible for Chapter 7, another petition may be filed under Chapter 11 which will also take away a huge chunk of financial obligations from the company, at least temporarily, until it is able to re-organize and rebuild its operations. In due time, a company can repay all its debts to its creditors.

A company considering filing bankruptcy should also take an effort to look at its consequences. One is the negative effect of bankruptcy for your business. Imagine, a potential investor or client will hesitate in doing business with a company who has a history of bankruptcy. The bankruptcy consequences extend until after the company has been cleared of its debts. The stigma created by filing bankruptcy will definitely stay a long time. Another of bankruptcy consequences is the fact that creditors will no longer provide flexible loan payment terms for you. You are considered a high risk for financial institutions. Higher interest rates will also be carried on each loan you take as part of bankruptcy consequences .

No matter how difficult a company experiences on the financial side, its owners should exhaust all efforts to sustain it through other possible options like debt consolidation and the likes. If bankruptcy is the only solution possible in some dire cases, being aware about bankruptcy consequences is the first step to do in order to know what to expect from filing bankruptcy.

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Colonial BancGroup File Bankruptcy Chapter 11

Bankruptcy-Site.com — Wed, 26 Aug 2009 10:29:13 +0000

The Alabama-based bank holding company, Colonial BancGroup, voluntarily filed bankruptcy chapter 11 based on reports. The move was done 11 days after the company was seized by the government and was taken over by BB&T Corp., a Northern Carolina lender.

Colonial BancGroup has a reported $380 million of debts and only $45 million in assets based on its filing. It is one of the largest banks that have sought the protection of chapter 11 bankruptcy in the US. Funding of the Taylor and Whitaker Mortgage Corp. should have saved Colonial BancGroup but the former has filed bankruptcy as well.

The company’s collapse was believed to have been led by its ventures which were affected by foreclosures and others from loses from default construction loans to Florida developers.

The case is In re Colonial BancGroup Inc, 09-32303, U.S. Bankruptcy Court, Middle District of Alabama.

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Bankruptcy Exemptions under Chapter 7

Bankruptcy-Site.com — Fri, 03 Apr 2009 11:58:41 +0000

Filing bankruptcy under Chapter 7 allows you to carry on the ownership of certain properties or assets as described under the federal and/or state bankruptcy exemption laws. The petitioner will list all his non-exempt and exempt properties during the bankruptcy process. The finality of which properties or assets are exempted will be stated on the property exemption report filed by the trustee.

Each state has its own exemptions based on state codes it follows. In general, assets which are possible to be exempted includes, but not limited to, life insurance proceeds, health or disability benefits, property of business partnerships, IRAs deposited over 1 year before filing bankruptcy and public employees retirement and disability benefits. For personal property it includes burial plots, books, clothing, furniture and residential condominium deposits. Other assets include wages, homestead and tools of trade.

Chapter 7 bankruptcy is probably the most sought after provision of the bankruptcy law due to the fact that most debts can be discharged using it. However, it is still important to check with a licensed and experienced bankruptcy lawyer on the many other prerequisites and law provisions of Chapter 7 before one file under it.

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