Recent Posts in Bankruptcy Law Category

Earlier this week it was reported that a proposed reorganization plan for the Tribune Company has fallen apart.  The plan was supposed to lead the company out of bankruptcy.

It is reported that negotiations failed between the Tribune Company and its creditors on a consensual reorganization plan.  Tribune Company owns broadcasting group WGN as well as several newspapers, including the Chicago Tribune.

Attorneys for the company are telling a judge in the Delaware bankruptcy court that the company has been unable to bring parties together through negotiations.  Recently, JP Morgan Chase debt specialist, Angelo, Gordon and Company have chosen to drop out of the original settlement agreement that would have made them the new owners of the Tribune Company. 

Soon, the attorney for the Tribune Company says that the organization will file amendments to its plan in a final attempt to gain support from its creditors. If the amendments do not work, Tribune Company could file a lawsuit over fraudulent transfer claims related to its 2007 leveraged buyout.

If you are filing for bankruptcy in San Antonio, contact the Malaise Law Firm and speak with a San Antonio bankruptcy lawyer.

After people have filed their Chapter 7 or Chapter 13 bankruptcy petitions, a bankruptcy trustee will be appointed to their cases.  Essentially, a bankruptcy trustee is designated to oversee people's bankruptcy proceedings.

Chapter 7
When people file for Chapter 7, a trustee will be selected from a random panel of lawyers.  During liquidation, the trustee will sell property and give the proceeds to people's creditors.  The trustee will also sit down with bankruptcy petitioners during a 341 meeting to ask questions about their income, debts and overall finances.  After the 341 meeting, the trustee reviews the bankruptcy paperwork and asks questions about nonexempt property. 

Chapter 13
When people file for Chapter 13, the bankruptcy trustee will still have a 341 meeting and discuss people's assets and finances.  However, instead of taking assets and going through the liquidation process, the trustee will assess people's repayment plans to see if it meets requirements and is feasible.  The trustee may also offer financial counseling or financial management services.

Are you filing for Chapter 7 or Chapter 13?  If so, contact the Malaise Law Firm  and speak with a San Antonio bankruptcy lawyer.

In the United States, consumers may file for chapter 13 bankruptcy if they:

§  are a U.S. resident

§  have a source of proven, regular income

§  owe less than $290,525 in unsecured debts

§  owe less than $872,550 in secured debts

Often times, people who choose to file for chapter 13 do so for two reasons.  The first reason people consider chapter 13 is because they make too much to file for chapter 7 according to the means test.   Anytime people choose to pursue bankruptcy, they must take the means test.  This test determines which type of consumer bankruptcy people may file for. 

The second reason people may choose to file for chapter 13 is because they wish to repay the debt they owe instead of simply having it discharged.  People who file for this type of bankruptcy will have 3 to 5 years to repay the debt that they owe to their creditors.

If you have additional questions about chapter 13 or bankruptcy eligibility requirements in Texas, contact the Malaise Law Firm and speak with a San Antonio bankruptcy attorney from our team.

In Wilmington, Delaware, it is reported that Washington Mutual Inc. delayed its hearings to discuss the company's chapter 11 bankruptcy proceedings.  The company is working to satisfy its shareholders that are seeking information about its reorganization pan.

Earlier, a Delaware judge had postponed consideration of the disclosure statement that would describe WaMu's reorganization plan till Thursday of this week.  However, the organization's attorneys requested that the hearing be moved until July 8^th.

It is reported that the shareholders want information about a proposed settlement of lawsuits that place JP Morgan Chase & Co, Federal Deposit Insurance Corp. and WaMu against one another.  In 2008, the FDIC took Washington Mutual's flagship bank and sold it to JP Morgan Chase for a reported $1.9 billion.

Now, shareholders say they are in negotiations with WaMu, but many issues are yet to be resolved.

Filing for chapter 11 in San Antonio?  If so, contact the Malaise Law Firm to discuss your filing with a San Antonio bankruptcy attorney.

What is foreclosure?
Foreclosure is a process that occurs when a homeowner falls behind on his or her mortgage payments to lenders or financial institutions.  Once homeowners fail behind on their monthly payments, lenders initiate legal proceedings to regain possession of the homeowners' properties. 

Are there alternatives to foreclosure?
Yes, there are several alternatives to foreclosure.  Some of these alternatives include loan modification, debt settlement and in some cases, filing for consumer bankruptcy.

Can bankruptcy stop foreclosure?
In some cases, filing for bankruptcy may put a stop to the foreclosure process.  However, the answer to this question will vary person-to-person.  For this reason, it is advised that people facing foreclosure in San Antonio consult with a San Antonio bankruptcy lawyer that can review their individual financial situations.  

Are you facing foreclosure?  If so, contact the Malaise Law Firm and arrange a consultation with an attorney from our team.  We would welcome the opportunity to speak with you and will provide you with reliable advice.

This past Friday, Dallas based Blockbuster said that it has plans to file for Chapter 11 bankruptcy.  The video store giant told news sources that it currently has enough cash flow to support operations for only the next 12 months. 

After its securities filings, the company made a public announcement.  Blockbuster said that if financial obligations could not be met, the company would have no choice but to file for Chapter 11.  It also said that by law, it is required to use cautionary language due to a possible bankruptcy.

In its latest filings with the SEC, Blockbuster said that it had "a successful implementation" of its cash management strategy.  Still, it was not able to achieve desired revenue targets and would have to either close more stores or pursue liquidation, financing or move toward filing for Chapter 11.

If you are noticing signs of bankruptcy and thinking about filing in the city of Dallas, contact a Dallas bankruptcy attorney from the Malaise Law Firm that can help you understand your options.

Most people who are halfway honest like to keep their financial agreements and pay their bills whenever possible. We feel better when we are able to meet our obligations and keep on top of things. Life, however, sometimes gets in the way of our plans, and like a powerful ocean undertow, can pull us down and we begin to drown. Unexpected things happen such as illness, injury, or loss of a job and before we know it, the bills keep piling up and sleepless nights set in. Creditors begin calling, credit scores gets ruined due to late payments and the bills fall further behind. Pretty soon, the only bills that get paid are the very basic ones, food, rent and utilities. This creates more tension for everyone involved, the husbands, the wives, and it most certainly affects the children. It is a known fact that most divorces occur due to financial problems in the family. When things get too rough, bankruptcy is sometimes the best solution.

Is Bankruptcy Really Moral?

Many people might ask themselves, "Is this really the right thing to do, is it moral?"  The answer is yes, it sometimes is the best option. The concept of bankruptcy actually dates back to the time period of the Old Testament. It refers to the ancient Hebrews having their debts forgiven every seven years. There comes a point when a person has to ask himself, what is more important, my (or my family's survival) or going under. Discharging one's debts IS sometimes the more ethical and moral solution.The concept of debt relief is not new.

When things have turned around and one gets more affluent, he can then repay some of those debts or make donations to charitable organizations to offset any feeling of indebtedness to society. One would also want to ensure that the situation did not happen again and get further educated on handling finances and money.

If you are in financial trouble and need help filing for bankruptcy, set up an appointment with a Houston bankruptcy attorney at our firm to discuss your situation.You can contact the Malaise Law Firm by calling 800-226-5787.

Advantages of filing bankruptcy

One of the main advantages of filing for bankruptcy is that it takes the immediate overwhelming amount of stress out of the picture as creditors will stop harassing you and you can put more attention on being productive to handle life, your job and your family. There are different kinds of bankruptcy filings and the correct one will need to be determined on an individual basis. Filing for bankruptcy is a form of responsibility of handling debts and one should be able to look at it from that viewpoint. A bankruptcy filing can also stop wage garnishments. If you are facing a foreclosure on your home, it is wise to not delay a filing so as to prevent losing your home. If you have tax problems, filing sooner rather than later can prevent more problems and complications from occurring.

Disadvantages of filing bankruptcy

A bankruptcy will affect your credit and will stay on your report for ten years. (Spouses by the way, can be kept off of a bankruptcy if so requested, depending on the type of bankruptcy you need to file.) A person may feel embarrassed or may feel a blow to his pride after filing, but this not unusual.

As long as one continues to take action to better his life, and recognizes that life goes on, he will pull through regardless. Debt relief can bring peace of mind.

Per the law, you have to list all of your debts, be they personal, or to companies. For personal ones, you can tell your creditors what you are going to do and let them know that you will repay them after you get back on your feet.

The long term results

Bankruptcy basically gives you a "time-out." Time out to get another job, time out to get back to a better state of health, time to do what you need to do to get your life back in order so you won't wind up back in the same situation. It also gives your credit a re-boot or fresh start. Just keep in mind that sometimes we have to look at what is the best solution, as well as which solution will be the most advantageous to everyone involved.

The U.S. Supreme Court has ruled it is not a violation of federal law for bankruptcy attorneys to advise their clients to acquire more debt before filing for bankruptcy, nor is a new provision to the bankruptcy code unconstitutional.

The case came to the Supreme Court after a Minnesota Law firm challenged a provision in the 2005 bankruptcy laws that said it was an abuse of the bankruptcy system to encourage clients to take on more debt before filing for bankruptcy. The firm argued that sometimes taking on more debt is the best and most practical thing to do to help the client.

The law firm also argued that the law was a violation of attorneys' constitutional rights to freedom of speech. The attorney who addressed the court said he feared the law infringed on their right to provide their clients with "unfettered, candid advice."

The Supreme Court ruled that bankruptcy attorneys can give their clients whatever advice they'd like, as long as it does not lead to an abuse of the bankruptcy system. The Supreme Court also ruled that the provision of the bankruptcy code is not unconstitutional and that it does not violate attorneys' First Amendment right to freedom of speech.

Considering Filing for Bankruptcy in San Antonio?

The Malaise Law Firm offers experienced and trusted legal counsel to people throughout the San Antonio area who need help filing for bankruptcy. If you're interested in learning more about filing for bankruptcy or how the new bankruptcy laws might affect your petition, please do not hesitate to contact our office today to schedule a consultation with an experienced San Antonio bankruptcy lawyer!

Passing the Means Test

The Means Test is a formula designed to identify debtors that can afford to pay some of their unsecured debts (for instance, credit card debt) and encourage repayment of these debts through a Chapter 13 repayment plan.  Debtors that “fail” the Means Test are disqualified from filing Chapter 7 bankruptcy.

The Means Test is actually two tests.  The first part of determines whether your current monthly income is less than your state’s median income for a household of your size.  The current state median income figures can be found at the U.S. Trustee’s website: http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm

If your family’s income is less than your state’s median income for a family of your size, you PASS the Means Test.  There is no other testing and you can proceed with a Chapter 7 bankruptcy.

If your family’s income is more than your state’s median income, you must complete the Means Test worksheet to calculate if you have (or should have) money to repay unsecured creditors.  In the end if you are able to pay a significant portion of your unsecured debt, you will FAIL the Means Test and cannot file a Chapter 7 bankruptcy.

The truth is that very few debtors fail the Means Test.  Many debtors earn significant incomes and still qualify for Chapter 7 bankruptcy.  Debtors with large monthly secured debt payments (e.g. house, car) often pass the Means Test as there is no extra money at the end of the month to pay unsecured creditors.

If you are contemplating a bankruptcy filing, it is in your best interest to consult with an experienced bankruptcy attorney as soon as practical.  The Means Test is a new and complex feature of the bankruptcy laws, and, consequently, its application and interpretation varies from jurisdiction to jurisdiction.  By examining your case early, a skilled bankruptcy attorney can identify whether you are able to pass the Means Test now or in the future.

“This purpose of the act has been again and again emphasized by the courts as being of public, as well as private, interest, in that it gives to the honest but unfortunate debtor . . . a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”

The idea of giving a poor, but honest debtor a “fresh start” is not a modern concept.  The Bible also contains debt forgiveness laws:

“At the end of every seven years you shall grant a release of debts.  And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the Lord’s release.” Deuteronomy 15:1-2.

Under modern bankruptcy law a debtor is entitled to a Chapter 7 bankruptcy discharge once every eight years.  However, this is not a clean slate.  A Chapter 7 bankruptcy can stay on your credit report up to 10 years, and you may encounter other obstacles after filing bankruptcy (e.g. obtaining credit).  Several bankruptcy courts have described the Chapter 7 discharge as giving honest but unfortunate debtor a fresh start, not a head start.

Bankruptcy is a safety net when you are at the end of your rope.  The Chapter 7 discharge provides a second chance and a new beginning free of creditor harassment.  If you are burdened with debt, consult with an experienced bankruptcy attorney and discover how a fresh start under the law can help you.