Should I File for Bankruptcy? – Reasons Why Bankruptcy May Be Right for You

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The decision to file for bankruptcy is a tough one no matter how you cut it. Going through the bankruptcy process takes time and money. Once a petition is filed, a person’s entire financial situation is a matter of public record and open to others. The process will take an emotional toll on the filer and his/her family and loved ones as well. So – again – the decision to file for bankruptcy is a tough one. One that should not be taken lightly and Read More +

Bankruptcy Abuse Prevention & Consumer Protection Act of 2005 (bapcpa) Part Ii

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Part II – Changes in Bankruptcy Law [See related articles on this blog: The Bankruptcy Abuse Prevention & Consumer Protection Act (BAPCPA), “Part I, Rationales” &Part III The “Means Test in Bankruptcy”] The enactment of the Bankruptcy Abuse Prevention & Consumer Protection Act (BAPCPA) in April, 2005, wrought significant changes in the law embodied in Chapter 7 of the United States Bankruptcy Code. Changes were also affected in Chapter 13 of the code, but such changes in that section were not as broad or as Read More +

Gibson Brands, Inc. Dba Gibson Guitars Secured Bondholder Recovery in Bankruptcy Court

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*** SECOND UPDATE *** According to a filing in U.S. Bankruptcy Court, the secured bondholders of Gibson Brands, Inc. bonds are set to receive 56 cents on the dollar for the $383 million in debt that they hold in the iconic guitar maker’s business. Senior secured bondholders, led by KKR & Company, were informed in a court filing yesterday (July 12, 2018) that such recoveries will come from Gibson under its Chapter 11 reorganization plan. The same bondholders are currently providing financing to Gibson during Read More +

Business Bankruptcy

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A business bankruptcy can take a number of forms. In a Chapter 7, a corporation may file bankruptcy in order to seek the orderly liquidation of its enterprise. In a Chapter 7 bankruptcy, generally the corporation is liquidated and ceases its business functions. The assets of the business are sold and distributed among the creditors of the corporation. Despite the belief of many, including many bankruptcy attorneys, a corporation does not receive a discharge in a Chapter 7 bankruptcy. There are benefits for a corporation Read More +

What is Chapter 12 Bankruptcy?

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Chapter 12 bankruptcy is a type of bankruptcy specifically fashioned to either family farmers or fishermen seeking to reorganize or consolidate their debts through bankruptcy proceedings. The most commonly filed Chapters of bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 12 bankruptcy is probably one of the least commonly filed forms of bankruptcy. Even Chapter 11 bankruptcy or corporate reorganization, is probably more commonly filed than Chapter 12 bankruptcy. Chapter 9 bankruptcy, which involves the reorganization of the debts of a municipality, may Read More +

Weinstein Company Bankruptcy – Harvey Weinstein Pleads “not Guilty”

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*** FURTHER UPDATE *** In a further development related to the Weinstein Company’s Chapter 11 bankruptcy case, disgraced former CEO Harvey Weinstein today entered “not guilty” pleas to several charges in the State of New York Supreme Court in Manhattan. The pleas apply to one count of first-degree criminal sexual conduct and one count each of first-degree and third-degree rape. Weinstein’s attorney, Benjamin Brafman told reporters that the two sexual encounters alleged in the case were “consensual acts that do not amount to sexual criminal Read More +

Chapter 11 Bankruptcy Filings – 770 As of March, 2018 – Highest in 7 Years

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*** UPDATE *** (See prior article on this blog – “Chapters in Bankruptcy, a Short Primer…”) The number of Chapter 11 (“reorganization” bankruptcy) filings has reached an all-time high since 2011. In that year, there were 789 Chapter 11 filings as the nation was still trying to recover from the “great recession” of 2008 – 2009. According to data from the American Bankruptcy Institute (“ABI”), the year-over-jump (that tracks the number of such filings in comparison to previous reporting periods) was the second highest to be Read More +

Exceptions to Credit Counseling Course Requirement in Bankruptcy

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One of the requirements for filing a petition with the Bankruptcy Court is to take a credit counseling course. Under Title 11 U.S.C. Section 521(b) debtors are require to file with the court a certificate from the approved nonprofit budget and credit counseling agency, which must have been completed within 180 days before the filing of your petition. The purpose of the credit counseling course is to tell you if you really need to file for bankruptcy or whether there is an alternativeoption available to Read More +

Leveraged Buyouts… Bain Capital… and the “art” of Bankrupting Companies

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lev·er·aged buy·out ˌlev(ə)rijd ˈbīˌout/ – noun Plural noun: leveraged buyouts The purchase of a controlling share of a company by its management, using outside capital A leveraged buyout (“LBO”) is the acquisition of one company (or division of a “target” company) by another outside company using a significant amount of borrowed money to finance the acquisition. The purpose of a leveraged buyout is to allow companies to make very large acquisitions without having to commit a lot of upfront capital. The assets of the “target” Read More +

Gibson Brands, Inc. Dba Gibson Guitars Files for Chapter 11 Bankruptcy Protection

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*** UPDATE TO PREVIOUS ARTICLE *** Ending months of speculation concerning the future of the once iconic guitar manufacturing company, Gibson Brands, Inc., the parent of Gibson Guitars, filed for Chapter 11 Bankruptcy protection earlier this week. The Nashville, TN-based company is said to have in excess of $100 million in outstanding debt (some reports say that such figure is at least five times greater than the reported amount). In a statement released by the company on Tuesday, CEO Henry Juszkiewicz said, “We are working Read More +