Bankruptcy Lawyer Bryan W. Stone answers the question: “Can I get credit after filing personal bankruptcy?”
If you pay much attention to the news you’ve likely heard about Donald Trump and his past financial problems. Though Trump claims he’s a billionaire many times over, his opponents enjoy pointing out his repeated financial distress. The claim from rivals is that the man has filed for bankruptcy four times before. The argument often made is that because he presided over so many bankruptcies of his own, he shouldn’t be trusted to watch out for the financial security of a country far larger and more complex than any of his businesses.
Bankruptcy Lawyer Bryan W. Stone answers the question: “What is Chapter 13 bankruptcy?”
Most people choose to file bankruptcy because they need to lessen their debt burden. A Chapter 13 bankruptcy is one good way of doing that, with the court overseeing an agreement between the debtor and creditors on a repayment plan. The creditors agree to cooperate because it is better to get something in a repayment plan than nothing should the filer instead pursue a Chapter 7 bankruptcy. Debtors like Chapter 13s because they can restructure their debts and hopefully pay less over the course of the plan than what’s owed.
Bankruptcy Lawyer Bryan W. Stone answers the question: “What is Chapter 11 Bankruptcy?”
Many people have heard about and may even be familiar with Chapter 7 and Chapter 13 bankruptcies. These two chapters are used by individuals who are in debt and looking for a way to start fresh, either through liquidation (Chapter 7) or reorganization (Chapter 13). But what about Chapter 11? To find out more about Chapter 11 bankruptcies, keep reading.
Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 11 Bankruptcy?”
The recent Republican presidential debate drew millions of viewers and nabbed headlines for a variety of reasons. One of those is because of a question that Donald Trump was asked about bankruptcy. Though many felt the question was intended to embarrass the notoriously egomaniacal businessman, Trump responded in a way that many experts agree with, by pointing out that those who seek legal protection from creditors should not be demonized or lampooned for having done so.
Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Will I lose my property if I file for bankruptcy ?”
Bankruptcy observers say if United States Bankruptcy Judge Robert C. Drain’s August ruling in the Chapter 11 bankruptcy of Momentive Performance Materials Inc. holds up, it could dramatically alter the playing field for debtors and even junior creditors who seek to restructure debts held by senior lenders at so-called cram-down interest rates.
Cram-down interest rates are interest rates that are considered below market value. In the Momentive bankruptcy, the debtor—Momentive—crafted a reorganization plan that would pay senior lien holders “with new long-term debt, at below-market interest rates,” according to Law 360.
The senior lien holders had an opportunity to accept a cash-out option and fight the restructuring plan, but turned it down. Momentive sought to enforce the restructuring plan, and in August, Judge Drain ruled that the senior lien holders could be paid based on the so-called “Till rate.”
The “Till rate” was formulated in a 2004 Supreme Court case that involved an individual debtor. Momentive marks the first time that the “Till rate” was adopted in a corporate Chapter 11 bankruptcy. In the Momentive case, the effect of the ruling on senior lien holders was dramatic. Immediately after the decision, the senior lien holders lost as much as $100 million in trading value on their Momentive notes.