4 Things that Happen after Filing Bankruptcy

Filing for bankruptcy protection is your right under the bankruptcy code.  There are many advantages of filing for bankruptcy, not least of which is the chance to eliminate your debts and start anew in good financial standing.  However, there are some things that will take place once you file for bankruptcy.

1. The court issues a stay on all your properties and debts
Once bankruptcy is filed, the court issues an automatic stay on your properties and debts that prevent your creditors from making any further efforts on collection.  Normally, the bankruptcy court will issue a release after 60 to 70 days following the first meeting of creditors.
2. Your credit ratings will be affected for the time being
It is inevitable that bankruptcy will affect your credit rating.  However the good news is that it can be repaired.  Your bankruptcy will go on record with the credit rating bureaus for a period of 6 years.  After this time, if you wish to apply for a loan, you would still have to declare your previous bankruptcy.
3. You can still be granted a loan after your bankruptcy
As soon as you exit bankruptcy, you can apply for any loan or mortgage.  In fact, at times even before the bankruptcy is over you can qualify for loans at good rates, terms and conditions.  As long as you remain prompt in repaying even small amounts of credit, you can eventually restore your good credit status.
4. You cannot file for bankruptcy again until after a certain period of time
In order to qualify to file for bankruptcy for the second time, you need to wait for at least 6 years to elapse.
In the case of filing for Chapter 7 bankruptcy, you cannot file again up to 8 years after your previous filing.  You cannot file another Chapter 13 bankruptcy unless you received a completion discharge under Chapter 7 more than 4 years ago or under Chapter 13 more than 2 years ago.
If your bankruptcy plea is rejected, you can only re-file your plea after 180 days.
If you are currently in a Chapter 13 bankruptcy but cannot or no longer wish to complete it, there are provisions in the law to convert it into a Chapter 7 bankruptcy.  This might occur if you lose your job that provides you the income to repay your debts under Chapter 13, for instance.
If you are contemplating bankruptcy as a means to discharge your debts and give you a new start, call us at (813) 200-4133 for a free consultation.  Alternatively, you can visit our website at http://tampabankruptcy.pro.

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12 Debts that Cannot be Discharged by Bankruptcy

It is undeniable that the rate of bankruptcy filings in the country has skyrocketed.  The reasons are obvious – the bad economy, loss of jobs, spiraling costs of services like healthcare, inflation, mounting debts, the credit squeeze, the list goes on.

If you are facing similar problems, look no further than bankruptcy for a solution.  Bankruptcy is a provision under the bankruptcy code that protects you from the harassment of creditors, eliminates your debts or allows you to repay them over an extended period of up to five years.  It is a right that you should claim.  You do not have to suffer the constant threats, encroachment on your property, wastage of your time imposed on your by your creditors – financial institutions, individuals, the IRS etc – once you file for bankruptcy protection.
There are 2 types of bankruptcies for both individuals and companies according to the bankruptcy code.  Firstly, the one that is applicable to both individuals and corporations is Chapter 7 bankruptcy.  Filing for bankruptcy under Chapter 7 allows you to eliminate most of your unsecured debts (medical bills, credit card debts, payday loans etc).  Your assets will be liquidated to pay off as much of your debts as possible and after that all the remaining unpaid debts are discharged.  The bankruptcy code governs what kinds of unsecured debts can be eliminated and which cannot.  Likewise, it also states which of your assets can be liquidated and which cannot.  Don’t worry, you won’t lose the roof over your head or the shirt on your back.
Secondly, the alternative type of bankruptcy for individuals is Chapter 13 bankruptcy.  Essentially, this type of bankruptcy is a payment plan governed by the bankruptcy court that allows you to repay your debts under better terms than you are under at present.  The repayment term will be up to five years, usually without a wage garnishment.  For companies, the equivalent type of bankruptcy is Chapter 11 bankruptcy.
While bankruptcy is designed to eliminate most debts and give you a new start, it cannot discharge all types of debts.  Here are the ones that bankruptcy typically does not forgive:
1. Debts from a prior filing for bankruptcy

2. Debts resulting from fraud (including false financial statements), misuse of funds, cheating, or robbery

3. Debts for certain taxes

4. Certain debts that result from the purchase of comfort goods or cash advances

5. Debts arising out of a divorce or separation

6. Student loans

7. Orders of restitution and debts resulting from willful and malicious injury

8. Legal fines and restitution (including drunk driving convictions)

9. Obligations not listed on the debtor’s bankruptcy schedules

10. Debts for spouse maintenance, alimony and child support

11. Debts owed to certain tax-advantage retirement plans

12. Debts for certain condominium or cooperative housing fees
While the law in each state may make some differences to this list (which is not exhaustive), the above generally spells out the types of debts that are non-dischargable through bankruptcy.
If you need help in eliminating your debts, call us at (813) 200-4133 for a free consultation on how bankruptcy can give you a new start or visit http://tampabankruptcy.pro.

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Duchess of York Fights Bankruptcy

Sarah Ferguson, the Duchess of York and ex-wife of Prince Andrew, is fighting to stave off bankruptcy.  The Duchess’ debts at one point hovered around a whopping £5 million, mostly due to failed business dealings.  Her debts are growing by the day as interests accumulate over the outstanding amounts.  It was rumored that she did not even have enough means to repair her £130,000 Bentley Continental Flying Spur, a gift from her Norwegian friend Geir Frantzen, which is lying idle in the garage at the Royal Lodge in Winsor.

Admittedly, the situation has improved somewhat when her ex-husband, the Duke of York gave her £1.5 million and she settled most of her personal debts.  However, despite these remnants of respite, she is still about £2 million in the red, due to mostly business debt.
Understandably, the Queen has expressed her deep concern and even the Prime Minister has discussed the matter with Her Majesty.  Senior Buckingham Palace officials have advised the beleaguered Duchess to file for personal bankruptcy.  If she does, she will be the first Royal to do so.
The main bulk of the Duchess’ debt is in the United States.  Her publishing, media and licensing company, Hartmoor closed down last year under the burden of about £650,000 in debts.  The Duchess also cancelled her contract with WeightWatchers in America worth £1.25 million.

Recently, she was sued for £200,000 by a legal firm for allegedly not paying their fees.  However, reliable sources revealed how the Duchess has often been taken advantage of.  “Lawyers have abused her by stacking up astronomical fees for just a few hours’ work”.  A car rental company has confiscated the Ford and Vauxhall the Duchess used because of unsettled debts.
A spokesperson to the Duchess claims that all her personal debts have been settled, except for a disputed amount of £65,000 owed to a personal trainer.  All other debts are business ones.
Prince Philip has advised his younger brother Andrew to wash his hands completely off his ex-wife for good.  But Andrew argued that their two daughters, Beatrice and Eugenie would be the ones to suffer most if their mother goes bankrupt.
Meanwhile, a tabloid revelation that the Duchess asked for £500,000 from a reporter pretending to be a businessman for access to her ex-husband did further damage to her reputation and her earning capacity plunged even further.If you are struggling with insurmountable debts, call us at (813) 200-4133 for a free consultation on how bankruptcy can help eliminate your debts.  Alternatively you could visit http://tampabankruptcy.pro.

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Cards Reduce but Bankruptcies Rise

The recession has radically changed the spending habits of Americans.  Not only are people trying to be more prudent in spending, but they have also been more cautious in spending on credit.  This is reflected in a significant 26% drop in new credit card applications over the last 3 years in the country according to the credit review bureau, Experian.  “This implies that many Americans consumers are relying less on cards and potentially trying to pay down debt,” explained Michele Raneri, Senior Director of Analytics in Experian.

According to the same Experian report, New Yorkers carry the most cards on average – 3.77 cards per person – more than any other part of the country.
Since the inception of the Credit Card Accountability, Responsibility and Disclosure Act, many consumers have found it easier to manage their credit card debts because this Act contains provisions that make it easier to reduce your credit card balance.
But despite the drop in the issuance of new credit cards, statistics show that the number of American cardholders who opted for bankruptcy to clear their credit card debts has risen.  The latest National Bankruptcy Research Center (NBRC) report shows that 139,000 cardholders applied for bankruptcy protection in July, compared to 127,000 in June.  In addition, a vast majority of these (75%) were applications for Chapter 7 bankruptcy which allows for consumers to completely discharge their debts through liquidation.  This type of bankruptcy is usually undertaken when credit card debts become too high for the consumers repay.
The other 25% of the bankruptcy filings come under Chapter 13 of the bankruptcy code that provides for a court-appointed trustee to oversee a payment plan for the debtor to clear the debts on a more affordable basis.  The NBRC report shows that the states where more than 90% of the bankruptcies are filed under Chapter 7 are Iowa, New Mexico, West Virginia and South Dakota.
In a separate report by the American Bankruptcy Institute (ABI), postulations show that the number of bankruptcies in the US could reach 1.6 million by the end of this year if the current pace of bankruptcy filings continue.
If you are struggling to pay off your credit card debts (or other debts), bankruptcy is a viable option.  Many have found bankruptcy to have given them a new start financially and you can discover that, too.  Call us at (813) 200-4133 for a free consultation or visit http://tampabankruptcy.pro.

Rocketplane in Bankruptcy

Rocketplane, a pioneer in the space tourism industry has filed for Chapter 7 bankruptcy protection last month in Wisconsin, where it relocated after shutting down its operations in Oklahoma.  The company, started by CEO George French, was initially based in Oklahoma’s Will Rogers World Airport with its hangar at Oklahoma Spaceport in Burns Flat.

In addition to filing bankruptcy for Rocketplane, CEO French filed bankruptcy for himself also, plus 2 other associated companies, namely Rocketplane Global and Rocketplane Kistler.  In bankruptcy papers, French was listed to have debts of about $8.2 million, Rocketplane’s debts amounted to some $3.7 million, Rocketplane Global debts came up to $2.6 million and finally Rocketplane Kistler owes about $7.4 million.
On the other hand, the company’s assets include structural components and the intellectual property from the company’s design of a spacecraft to transport tourists into space, which was patented.  These design patents may now have to be sold as part of the Chapter 7 bankruptcy liquidation process.  French confirmed that the company had reached the ‘preliminary design review’ stage in its efforts to build the world’s first tourist spacecraft.
When it was first formed in 2003, the company received an $18 million state tax credit (called the Space Transport Vehicle Provider Credit) to offset its taxes.  The tax credit was later sold to the Bank of Oklahoma and expired at the end of the year.  Besides the state tax credit, Rocketplane received numerous investments from individuals and companies.
The bankruptcy filing listed creditors that include individuals, financial institutions and other businesses throughout the U.S. and overseas.
Some of the local creditors include:
1. $1,464.64 to Four Points by Sheraton hotel in Oklahoma City.
2. $447.60 to Thrifty Car Rental in Oklahoma City.
3. $43,780.45 to Tulsa accounting firm Woodrum Kemendo Tate & Westemeir.
4. $47,981.65 to Oklahoma City accountants Cole & Reed.
5. $62,553.44 to former program manager David Faulkner.
6. $897.26 to Oklahoma Office Systems.
7. $260 to the Petroleum Club of Oklahoma City.
CEO French himself is a creditor in one filing, as he’s owed a deferred salary of more than $735,500.
All the money Rocketplane received went primarily to a few expenses.  The most expensive item was the building of the spacecraft itself.  A lot of money was spent on jet engines to power the spacecraft and on a contract with a rocket engine manufacturer to build a liquid oxygen/kerosene engine.
Then came administrative expenses like the payroll.  Rocketplane had about 50 employees in 2006.  About $18 million was spent on “employees’ 200,000 hours of design work,” according to French.  When funding started to ebb in 2007, the company struggled to stay afloat.  Nevertheless, French expressed optimism that Rocketplane will emerge from bankruptcy and return to Oklahoma.
If you or your company are struggling to stay afloat in your business, consider bankruptcy as a way out.  Call us at (813) 200-4133 for a free consultation or visit http://tampabankruptcy.pro.

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How will Bankruptcy affect Texas Rangers

The Texas Rangers baseball team has finally come out of bankruptcy after being bought by a consortium lead by Hall of Famer Nolan Ryan and his business partner, attorney Chuck Greenberg.  Ryan and Greenberg won the auction after an intense battle with many rival groups, primarily the group led by Mark Cuban, owner of the Dallas Mavericks.  The final price paid was around $590 million, inclusive of taking over the team’s current debts of about $208 million.

With the end of the bankruptcy saga of the popular baseball team, many pundits and the general baseball-loving fans would be asking, “How will the Texas Rangers perform now?”
To get an idea of this, it’s good to evaluate the performances of other sports teams who have been in similar situations in the past.  In 1993, the Baltimore Orioles were on the verge of bankruptcy when it was bought over by a group led by attorney Peter Angelos.  The purchase price was $173 million.  Angelos was a native of the area and hence his move won the praises of many in the League.  However, the Orioles have only once won the American League East (in 1997) and this season seem to be headed for a 100-loss record.
On the other hand, NHL team Pittsburgh Penguins was about $100 million in debt in 1998.  The team would have folded up if not for the business acumen of one of its players, Mario Lemieux who was owed some $30 million.  He teamed up with Ron Burkle and together they bought over the team.  Ten years after their purchase, the Penguins won the Stanley Cup in 2008.
It appears the ownership factor does play a significant role in the success of the team.  Like Lemieux, Nolan Ryan is a former player who used to pitch for the Rangers.  He was also the team president just before the sale was finalized.  With such an owner who has both financial and personal stake in the team, you would expect the Texas Rangers to start making a serious challenge for major honors in Major League baseball.  Furthermore, the team also comprises of exciting talents like Josh Hamilton, Michael Young and Nelson Cruz.  The team has improved their starting pitch with recent additions, Cliff Lee andRich Harden.
It appears that the prospects for Texas Rangers seem bright.
If you are in financial difficulties in these tough economic times, bankruptcy can provide you with a way out of your debts.  Many others have sought bankruptcy protection (which is your right under the law) and successfully eliminated their debts.  So call us at (813) 200-4133 for a free consultation or visit http://tampabankruptcy.pro.

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Bankruptcy Sales of a Nightclub and Baseball Team

Love Files for Bankruptcy

Popular nightclub Love in Washington DC is filing for bankruptcy to protect itself from creditors while its owners negotiate the sale of the establishment.  Park Place Inc, the owners of Love nightclub, have listed liabilities of between $1 million and $10 million to about 15 creditors, including music and equipment vendors and up to $50,000 worth of assets in their bankruptcy filing.  Park Place also owns The Place at 14th, a second establishment it opened in 2007.
Marc S. Barnes, the chairman of Park Place is unable to state when negotiations to sell the nightclub would be concluded.  “It’s been taking a little bit longer to negotiate the sale than we expected. It could be (completed) any day or it could take another two months”.  Creditors of the nightclub have refused to budge on their demands to clear the way for the completion of the sale.
Barnes and his wife Anne have also filed for bankruptcy protection as individuals under Chapter 11 to protect their residential property and the two businesses.
It has been a difficult year for Love, a classy establishment that together with The Place at 14th, are frequently used for political functions and have drawn big name performers like Beyonce and Jay-Z since opening its doors in 2001.  Earlier this year, the authorities issued an order for Love to cease operations for three months following a stabbing that took place there on New Year’s Day.  The Alcoholic Beverage Control Board of Washington DC also banned Barnes’ liquor license because of the stabbing and other incidents.
Since its reopening in March, the nightclub has primarily been used for special events.

Group Buys Texas Rangers in Bankruptcy Auction

A group that included Hall of Famer Nolan Ryan successfully bid for the Texas Rangers baseball team, outbidding rival bidder Mark Cuban, owner of the Dallas Mavericks baseball team.  Ryan and his partner, attorney Chuck Greenberg, bid $385 million for the team and offered to assume its debts amounting to $208 million at the auction at a Fort Worth, Texas courthouse.
Shortly after the winning bid was made, Cuban pulled out of the auction.  His lawyer, Clifton Jessup congratulated Ryan and Greenberg.  US Bankruptcy judge D. Michael Lynn is expected to give his approval to the sale.  Under Major League Baseball rules, the sale would also require the approval of 75% of the team’s 30 owners.  The owner’s are due to hold a meeting of their own later this month.
If you own a business that is burdened with debts, consider filing for bankruptcy as a way out.  Bankruptcy is a legal right under the law that offers protection from creditors and allows you to either eliminate or pay off your debts under a payment plan.
Call us at (813) 200-4133 for a free consultation or visit http://tampabankruptcy.pro.

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Corporate Bankruptcies

In a statement made by oilfield services company Trico Marine Services, the company said that may need to file for bankruptcy due to poor second quarter results.  As at June 30, Trico Marine had $32 million but certain EBITDA liquidity requirements might mean the company still needs to seek bankruptcy protection despite successful talks to restructure its debt position.  It successfully readjusted its second quarter EBITDA from $7 million to $9 million but this is not likely to be sufficient for the company to meet its financial obligations.  It had notes payments that were due in June for which it had insufficient funds to pay.

In general, the company’s forecasted cash and available credit capacity are not expected to be sufficient to meet its other commitments as they come due over the next year.  Trico Marine is at present negotiating with some of its lenders over the terms and conditions of debtor in possession loan commitments.

General Motors Adds 6,900 Workers Post-bankruptcy

Since emerging from bankruptcy last year, General Motors has added or recalled 6,900 workers back to its operations, mostly (about 1,100) in Michigan.  In addition, GM’s second financial report, due out this month, will report the auto company’s first quarter results of an $865 million profit for the period ending March 31.

In a telephone interview, vice chairman Steve Girsky said the expected people to be encouraged by the results.  Out of the 6,900 jobs, about 1,100 of them are in Michigan at the Delta Township plant near Lansing, a new battery plant in Brownstown Township and other GM facilities in Bay City and Warren.  The company has also increased its workers in 3 Canadian facilities by 2,700 since its bankruptcy.

In the United States, the total number of employees General Motors has on its payroll dropped drastically by 45,000 over the past 3 years.  The number was 122,000 as at the end of 2006 but it fell to only 77,000 in 2009.

If you or your company are struggling with debts in this economic recession, consider bankruptcy as a means to eliminate them.  Bankruptcy is a provision in law that allows you to write off or pay your debts over a period of time, while protecting you from creditors’ harassments.  Call us at (813) 200-4133 for a free consultation or visit http://tampabankruptcy.pro.

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