How a Creditor Can Get the Most (or at Least Not the Least) Out of a BankruptcyJames S. Carr
For instance, a creditor can take steps to force repayment for debts such as: alimony child support back taxes a federal student loan, or a money judgment for some other unpaid bill (like a credit card balance or personal loan). Before the creditor can garnish your wages, most must sue ...
Yes, you read that right – a creditor can force abusiness debtor(and sometimes, awealthy individual) into bankruptcy under certain circumstances. If a business debtor owes your company money, consider filing an involuntary bankruptcy case on its behalf. Read on to find out when filing an invol...
Nietzche points out that if a consumer is able to maintain monthly payments to the original creditor through a debt management program, that’s much better for their credit than intentionally falling behind on their bills to build leverage for trying to settle the debt for less than they owe. ...
though some states permit collection for up to 15 years. After this period, a creditor cannottake legal actionto force payment, but they may still attempt to collect the debt voluntarily. Even afterthe statute of limitationsexpires, some creditors may try to contact you or sell your debt to ...
Bankruptcy—the legal process for companies or individuals when they can't pay their debts—can be a pretty negative situation for those going through it. But for investors who are willing to do some research, it can present opportunities. Here, we'll take a look at exactly what happens dur...
Even if your company is conservatively managed and well-capitalized, you can be adversely affected by thefinancial distressof others. As a turnaround consultant, I have seen many instances where the distress of key stakeholders trickled over to the client, causing their own eventual bankruptcy. Cu...
Upon recognition of a foreign "main" proceeding, section 1520(a) of the Bankruptcy Code provides that certain provisions of the Bankruptcy Code automatically come into force, including: (i) the automatic stay preventing creditor collection efforts "wit...
Second, you may already have a consolidation loan if you have a home equity loan or a home equity line of credit. If you have an unsecured loan, you can consolidate it into a secured loan, where the creditor can take your home if you don’t pay back the loan....
(Chapter 7) or reorganization (Chapter 13). In both cases, the bankruptcy court can discharge certain debts, but not all types of debt. Once a debt has been discharged, the creditor can no longer take action against the debtor, such as attempting to collect the debt or seizing any ...