Bankruptcy is an important tool that allows people to regain control of their finances and alleviate overwhelming debt obligations that they are unable to pay. Not all claims are dischargeable in bankruptcy, however. For example, the United States Supreme Court recently held that judgments against non-debtor cannot be discharged. If…
People with all-consuming debt will often seek financial relief by filing for bankruptcy. Bankruptcy can help many people regain control of their finances, but if they do not proceed carefully, they may incur additional debt. This was demonstrated in a recent California bankruptcy case in which the court sanctioned debtors…
Businesses grappling with debts they are unable to pay can often seek relief via bankruptcy. The United States Bankruptcy Code sets forth the requirements and relief available for debtors under various chapters. Many businesses choose to file Chapter 11 bankruptcy actions, as it allows them to maintain operations and assets.…
People saddled with unbearable debts are often able to take advantage of the United States bankruptcy laws and seek relief by filing a petition for bankruptcy. If they do, however, they must be cognizant of any procedural rules; otherwise, their bankruptcy petitions may be dismissed. For example, the Bankruptcy Code…
The filing of a bankruptcy action triggers an automatic stay in litigation against the debtor, which, in many instances, helps them protect their assets. If a bankruptcy action is dismissed, the stay will be lifted, though, leaving property vulnerable to credits. A debtor can argue that an action was dismissed…
In Chapter 11 bankruptcy cases, trustees are typically entitled to receive compensation for their services, which is subject to approval by the bankruptcy court. These fees can vary but are typically determined based on the complexity of the case and the extent of the trustee’s responsibilities. To ensure fairness and…
Bankruptcy courts are courts of limited jurisdiction; generally, they only handle bankruptcy matters. While they can exercise jurisdiction over other claims, their authority is limited to claims that are related to or arise under or in bankruptcy. Thus, if a party attempts to bring a claim before a bankruptcy court…
In bankruptcy actions, debtors are typically protected from claims from creditors. The bankruptcy code only protects debtors from personal liability, however, not claims to property interests in a partnership, as demonstrated in a recent California ruling issued in a bankruptcy case. If you need assistance managing your debts, it is…
Bankruptcy actions generally offer people relief from significant financial burdens, as most debts are discharged in bankruptcy. There are exceptions to the general discharge rule, however. For example, claims arising out of willful misconduct, such as fraud or intentional injury, will often be deemed non-dischargeable. Recently, a California court analyzed…
One of the many benefits of filing a bankruptcy action is that it automatically stays any parties from pursuing civil claims against the debtor. Generally, a stay will last for the duration of the bankruptcy case. In some instances, though, the stay will expire after a much shorter time period.…