Megan McArthur’s Post

Chapter 7 bankruptcy, also known as liquidation bankruptcy, offers individuals and businesses the chance to discharge most unsecured debts. This process involves selling non-exempt assets to pay creditors, which provides …

Navigating The Bankruptcy Process – A Step-by-Step Guide Overwhelmed by the complexities of the bankruptcy process? Filing for bankruptcy can be a daunting and overwhelming task, but with the right information and guidance, you can successfully navigate through it. In this step-by-step guide, we will break down the bankruptcy process to help you understand each stage and what to expect, ensuring you are well-prepared to take on this legal process.Types of Bankruptcy Before delving into the specifics of each type of bankruptcy, it is important to have a basic understanding of the different options available to individuals or businesses facing financial distress. There are several types of bankruptcy proceedings, each designed to address various financial situations and provide a path towards debt relief. Understanding the differences between these options is crucial in determining the most suitable course of action. Chapter 7: Liquidation Bankruptcy Chapter 11: Reorganization Bankruptcy Chapter 13: Wage Earner's Plan Special Types: Chapters 9, ... #Bankruptcy #Bankruptcyassistance #bankruptcyprocess #bankruptcysteps #DebtResolution #financialrecovery #Guide #LegalAdvice #legalconsultation #legalguide #navigatingbankruptcy #Process #stepbystepbankruptcy

Check out the client alert written by BAST AMRON LLP partner Scott Brown. One of The Biggest Misconceptions About Bankruptcy. Let's clear up a common misunderstanding about bankruptcy. It's often believed that corporations or LLCs can get a #chapter7 discharge to wipe out debts. But here's the truth: Chapter 7 discharges are only for eligible individuals. There are alternatives. A non-liquidating #chapter11 can discharge pre-petition debts, albeit at a higher cost. And with Subchapter V, small businesses with < $7.5M in debt have a simpler route. However, proceed with caution! Chapter 7 carries potential risks, including trustee investigations, clawbacks, and the possibility of facing litigation. Considering bankruptcy? Reach out to us first. Understanding your options is key. Click on the link to learn more. https://lnkd.in/g_X-A4_9. #insolvencylitigators #insolvencyandbankruptcy #insolvencyandrestructuring

This article is about a fairly new type of bankruptcy proceeding that can be an absolute game changer and life saver for the vast majority of financially distressed companies. “Regular” business bankruptcy is often too expensive and risky for all but very large businesses. This new type of bankruptcy to which I’m referring is subchapter V of chapter 11 of the Bankruptcy Code. The biggest ‘catch’ is that a company needs to have have no more than $7.5 million of liquidated and non-contingent debt (though that cap may decrease to just over $3 million for cases filed after June 21st).

Maximizing Protection: Navigating Your Bankruptcy Estate Effectively Navigating the complexities of a Bankruptcy Estate is a pivotal step for individuals and businesses grappling with financial hardship. When you file for bankruptcy, understanding the scope and implications of your bankruptcy estate becomes crucial. The Bankruptcy Estate encompasses all legal and equitable interests of the debtor in property at the time of bankruptcy filing. This broad definition includes everything from tangible assets like homes and cars to intangible assets such as stocks and intellectual property rights. Understanding the Bankruptcy Estate At the heart of any bankruptcy case is the creation of the bankruptcy estate, a concept central to the bankruptcy process. The estate is formed automatically upon the filing of a bankruptcy petition and includes all forms of the debtor's property interests. Critical for debtors, the Bankruptcy Estate is managed by a bankruptcy trustee, who plays a key role in overseeing the estat... #AssetLiquidation #assetprotection #BankruptcyCode #bankruptcyestate #bankruptcyfiling #bankruptcyprocess #bankruptcytrustee #Chapter11 #Chapter13 #Chapter7 #creditrebuilding #DebtRelief #debtoreducation #exemptions #FinancialManagement #financialrecovery #legalconsultation

Understanding Bankruptcy – What Are The Other Forms You Need To Know? It's crucial to have a comprehensive understanding of the various forms of bankruptcy when navigating financial difficulties. Beyond Chapter 7 and Chapter 13 bankruptcy, there are other important forms that individuals and businesses should be aware of. These additional forms offer different solutions and procedures to address diverse financial situations and obligations. Exploring the nuances of each bankruptcy form can provide invaluable insights into the best course of action for debt relief and financial recovery. From Chapter 11 for business reorganization to Chapter 12 designed for family farmers and fishermen, each form serves a distinct purpose with specific eligibility criteria and implications. Being well-informed about these other forms of bankruptcy is crucial in making informed decisions and seeking appropriate legal guidance.Overview of Bankruptcy Forms The Voluntary vs. Involuntary Bankruptcy Petitions Any individual or business entity can file for bankruptcy under two main categories: volunt... #Bankruptcy #BankruptcyForms #bankruptcyguide #bankruptcyoptions #Chapter13 #Chapter7 #DebtResolution #financialrecovery #FinancialStrategy #Forms #LegalAdvice #Understanding #understandingbankruptcy

I have had the privilege of serving as one of the first Chapter 11 Subchapter V bankruptcy trustees since the provision was enacted. It's disheartening to see that the debt limits provision did not get re-extended to the $7,500,000 limit. Many small businesses struggle to survive the pressures and costs of a full Chapter 11 filing, making Subchapter V a crucial lifeline. It has been a game-changer for numerous small businesses navigating financial crises, allowing them to not just survive but thrive. Through my involvement in various small business restructurings, I've witnessed firsthand how Subchapter V enables these businesses to restructure, retain employees, and ensure creditors receive a higher return compared to liquidation. It's truly a win-win-win for all parties involved. Read more about the impact of small business bankruptcy rules tightening: https://lnkd.in/eMVwfK3M

Understanding equity is crucial when facing bankruptcy. Equity is the portion of your property value that exceeds any debts or liens. It determines if you can keep your assets under Chapter 7 or Chapter 13 bankruptcy. In Chapter 7, non-exempt equity might lead to asset sale, while in Chapter 13, you're generally allowed to keep your assets but must repay creditors based on your non-exempt equity. Accurate equity calculation is vital, considering property market value and all claims against it. Consulting a bankruptcy lawyer ensures informed decisions and optimal outcomes. #BankruptcyLaw #DebtRelief #FinancialGuidance

Subchapter V within chapter 11 of the Bankruptcy Code was put in place to create a more cost-efficient and streamlined restructuring process. In response to COVID-19, the debt cap for eligibility was temporarily increased from $3 million to $7.5 million, which has allowed additional debtors to take advantage of the subchapter’s benefits. The American Bankruptcy Institute’s Subchapter V Task Force has issued a preliminary report recommending that the increased cap remain in effect permanently.    Patterson Belknap Partner Dan Lowenthal and Associate Kimberly Black discuss the report and explain the potential reasons behind subchapter v’s increasing popularity in the firm’s Bankruptcy Update blog: https://lnkd.in/egn2fu7b #bankruptcycode #americanbankruptcyinstitute #restructuring

Essential Steps To Successfully Navigate Bankruptcy Chapter 13 Many individuals facing overwhelming debt turn to bankruptcy as a way to regain control of their finances. Bankruptcy Chapter 13, also known as reorganization bankruptcy, offers a structured repayment plan to help debtors manage their obligations while retaining their assets. Understanding the key steps involved in navigating Chapter 13 bankruptcy is crucial to a successful financial reorganization. This informative guide will outline the necessary steps individuals need to take in order to effectively navigate the Chapter 13 bankruptcy process, from filing the petition to completing the repayment plan and obtaining a discharge. By following these steps diligently and seeking the guidance of a knowledgeable bankruptcy attorney, individuals can work towards a fresh financial start and a more stable future.Evaluating Your Financial Situation Before begining on the journey of filing for Chapter 13 bankruptcy, it is crucial to assess your current financial situation thoroughly. This evaluation i... #Bankruptcy #bankruptcyguide #bankruptcyplan #Chapter13 #Chapter13bankruptcy #DebtRepayment #Essential #financialrecovery #financialstability #LegalAdvice #legalconsultation #Navigate #navigatebankruptcy #successfulbankruptcy