Bankruptcy Blog

Chapter 7 bankruptcy, also known as a straight or liquidation bankruptcy, is a type of bankruptcy that can clear away many types of unsecured debts. When you file for Chapter 7 bankruptcy, the court places an automatic temporary stay on your current debts. This stops creditors from collecting payments, garnishing your wages, foreclosing on your home, repossessing property, evicting you or turning off your utilities. The court will take legal possession of your property and appoint a bankruptcy
Signage is displayed outside a JC Penney Co. store in Chicago, Illinois.Christopher Dilts | Bloomberg | Getty Images Through mid-October, there had been 46 retail bankruptcies in 2020, according to a tracking by S&P Global.More retailers are expected to file for bankruptcy after the holiday season.Bankruptcy doesn’t always mean the end.Retailers including J.Crew and Neiman Marcus have already emerged from bankruptcy court, having filed for Chapter 11 in 2020. For the dozens of American retailers
2021 is just around the corner and it is time to start thinking about how you want it to be different. Resolutions are nice, but they rarely succeed. Goals are better. Ones that are reachable with a plan and steps to get you there. If one of your goals for the new year is to get out of debt, it is time to start planning. Getting your plan in place before the end of the
The benefit of this chapter is that you repay some of your debts—but usually not all—over the course of a three- to five-year repayment plan. But before the court approves your plan, you must fill out the official bankruptcy paperwork and prove that you are: up-to-date on tax filingswithin debt amount limitationsemployed and have enough income to cover the required monthly payment, andan individual, not a business (however, all financial aspects of a sole proprietor’s
Chapter 11 vs. Chapter 7 First, if you expect your business to remain viable in the long-term but need relief from creditors now, a new option under Chapter 11 may be appropriate. This path allows a firm to remain operational and, generally speaking, renegotiate its debt and repay over a set amount of time, as well as take other steps to return to profitability. Called Subchapter 5, this route — it took effect in February