In early October 2014, the Eleventh Circuit Court of Appeals in Atlanta, GA (which governs bankruptcy cases in Florida too), decided the case of Failla v. Citibank N.A. The Court held that debtors who "surrender" their house in a bankruptcy case may not later oppose a foreclosure action against that house in state court.
We encounter personal injury judgments in two contexts: (1) the injured party or injured party's insurance company has a judgment against you for a car accident, or (2) whether personal injury judgments can be wiped out in a bankruptcy case. The simple answer is that, yes, personal injury judgments can be discharged, or eliminated, by filing bankruptcy.
The simple answer is yes, you can file bankruptcy if you own a business. I'm not referencing a business that is failing that needs to file bankruptcy - that would be a Chapter 7 or Chapter 11. Instead I'm referencing someone who needs to file bankruptcy, either Chapter 7 Liquidation or Chapter 13 Reorganization, but they own a business; the debtor owns either an LLC or Corporation, either 100% or jointly with other owners.
I recently released a blog and related podcast about the bankruptcy code being broken into 9 chapters, all odd numbered except for one even numbered chapter. That post failed to mention a Chapter 6.5, which you won't find in the bankruptcy code, and you won't even find it mentioned in the halls of the bankruptcy court as slang (unless this post goes viral). So what the heck is a Chapter 6.5?
The Bankruptcy Code is broken into nine chapters, eight of them are odd-numbered and one is even-numbered. While the reason for odd numbered chapters is to allow for expansion of the Bankruptcy Code, when a new chapter was added in 2005 by the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), it was added at the end, as the next odd numbered chapter - Chapter 15!
A while back, I wrote a blog titled "What Chapter of Bankruptcy is Right for Me?" This blog is meant to supplement, or even precede that blog as we explore whether someone should even file bankruptcy. The determination on whether to file is largely based upon the debtor's income and non-exempt assets.
Thank you to one of our podcast listeners, Tiffany, on a great question, or questions: "Why should I hire a bankruptcy attorney?" and "What are some different tips on hiring the RIGHT bankruptcy attorney?"
Imagine that you've made the hard decision to file bankruptcy, to erase your debt and get a fresh start. To determine what chapter of bankruptcy is right for you, please read "What Chapter of Bankruptcy is Right for Me?". In every bankruptcy case, approximately thirty days after the filing date, the debtor and counsel must appear at a meeting of creditors under Section 341 of the Bankruptcy Code (the "341 Meeting.")
Okay, so these may not necessarily reflect your attorney's biggest frustrations, but they represent mine. While we are sympathetic, there are some clients or some prospects that we are unable to help, because:
Bankruptcy has a negative connotation or stigma and although it is a great tool to eliminate or consolidate debt, many people find it is too stressful or intimidating to file more than once. Unfortunately, sometimes, it is necessary to file bankruptcy more than once in the debtor's lifetime.