November 2023

What is Chapter 7 bankruptcy?

Filing Chapter 7 bankruptcy is a serious financial decision for individuals who have large amounts of debt they likely won’t ever be able to repay. 

Though filing for Chapter 7 ultimately gives you a fresh financial start by eliminating debt, it may come with serious consequences, including negatively impacting your long-term personal credit health and the loss of valued personal possessions.

What is Chapter 7 bankruptcy? 

Chapter 7 bankruptcy is liquidation bankruptcy that will discharge most of your unsecured debts. 

“Among other actions, a bankruptcy court will issue a temporary stay on collection activities, so collectors will stop calling and wage garnishments will cease,” said Derek Jacques, bankruptcy attorney with The Mitten Law Firm in Southgate, MI.

Types of collection activities that may be halted temporarily include evictions, garnishments and repossessions.

“With Chapter 7, the court will take ownership of your assets, and assign a trustee to oversee the proceedings,” Jacques said. “The trustee will review your finances, debts, income, and assets.”

The court may sell non-exempt property to help pay back your creditors and also run a meeting between you and your creditors where you’ll answer questions about your filing. 

Certain types of debts can be discharged In Chapter

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November 23, 2023 by ATTORNEY

A Third J&J Bankruptcy Attempt Won’t Resolve Victims’ Talc Claims

In my many years as an attorney seeking to protect consumers from defective products, I’ve never felt a responsibility as heavy as the one I bear for the thousands of women suffering from ovarian cancer and mesothelioma, conditions linked to Johnson & Johnson’s tainted talc products. The profound pain and suffering they and their families endure is immeasurable.

Dozens of peer-reviewed scientific studies have revealed the correlation between talc use and these devastating diseases, with evidence pointing to the disturbing presence of asbestos, a notorious carcinogen, within talc.

Rather than acknowledge the mounting scientific evidence and provide fair compensation to the victims, J&J resorted to evasion and legal trickery.

By adopting the disreputable and now notorious Texas Two-Step bankruptcy strategy, J&J did a major disservice to both victims and J&J shareholders.

If the company’s bankruptcy scheme had succeeded, it would’ve been a gross miscarriage of justice. Victims would be robbed of their rightful day in court and forced to accept grossly inadequate compensation.

This maneuver by J&J was a gamble on perceived vulnerabilities within our multi-district litigation system. The wheels of justice often turn slowly, and J&J’s bankruptcy strategy brought the process to a screeching halt.

J&J expected

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November 22, 2023 by ATTORNEY

My Bank Wouldn’t Offer Me a Loan After Bankruptcy, But a Credit Union Would

This column is the fourth in a series of articles that offer insights into personal experiences with the products and services that you read about on Investopedia every day.

When I needed a personal loan to help buy a used car, I went to my local bank, where I was a long-time customer. This was two years after my husband and I had filed for bankruptcy due to his business debt, and the bankruptcy had been discharged. So, I thought my best option would be to work with my local bank. When it turned me down, I was forced to look to other institutions. Thankfully, a credit union was willing to lend to us. 

2 Years After Bankruptcy, My Bank Wouldn’t Offer Me a Loan

A few years ago, my husband had to file for bankruptcy due to his business debt. I was devastated when our bankruptcy attorney told me I had to be included in the proceeding because I prided myself on managing our personal finances.

As soon as the bankruptcy was discharged, I set out to rebuild my credit as quickly as possible. This was a tough task given how long it takes to boost your credit

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November 18, 2023 by ATTORNEY

Bankruptcy Court OKs Terminating Santa Barbara News-Press Employee Retirement Plan | Local News

In another blow to former Santa Barbara News-Press employees, the bankruptcy trustee is terminating the company’s 401(k) retirement plan and will pay the fees out of their accounts.

When Ampersand Publishing owner Wendy McCaw filed for bankruptcy in July, the News-Press stopped publication, and Managing Editor Dave Mason told employees their jobs were eliminated.

McCaw claims in court documents that the parent company has about $5 million in debts, including payments to former employees and vendors, and much less in assets.

Last month, U.S. Bankruptcy Court Judge Ronald A. Clifford III approved terminating the Nationwide Financial 401(k) employee benefit plan because the business no longer exists.

Bankruptcy trustee Jerry Namba and his attorneys said former News-Press employees “have apparently been contacting (plan administrator Latitude Retirement) to inquire about the status of their 401(k) accounts and how the funds will be distributed.”

Requests to distribute the money couldn’t be processed because of the bankruptcy filing, bankruptcy attorneys wrote in court documents.

Former News-Press sports writer Mark Patton said he’s been trying to roll over his 401(k) into an IRA account “and have been getting nothing but a total run around from everybody,” including Nationwide, Latitude, and the bankruptcy attorneys.

“I’m

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November 17, 2023 by ATTORNEY

Prison healthcare company restarts mediation after bankruptcy judge Jones quits

Prison healthcare company restarts mediation after bankruptcy judge Jones quits
Prison healthcare company restarts mediation after bankruptcy judge Jones quitsbankruptcy judge, under ethics review, steps back from major cases”/

U.S. Bankruptcy Judge David Jones speaks during an interview with Reuters in this screen grab taken from a Reuters video on October 13, 2023. REUTERS TV via REUTERS Acquire Licensing Rights

  • Mediator had resigned after admitting relationship with lawyer
  • Judge urged a full review of medical malpractice settlement
  • Tehum Care will renew mediation on Nov. 27

Nov 14 (Reuters) – Prison healthcare company Tehum Care Services received court approval on Tuesday to proceed with a new mediator who will replace former bankruptcy judge David Jones, who resigned from the bench over his romantic relationship with an attorney involved in the negotiations.

Tehum Care, which filed for bankruptcy in February to address prisoners’ medical malpractice lawsuits against its corporate predecessor Corizon Health, had reached a mediated bankruptcy settlement which would have allocated roughly $8.5 million to settle prisoners’ and former prisoners’ claims.

But before the deal was approved, attorneys for prisoners and the U.S. Department of Justice’s bankruptcy watchdog argued that the settlement was tainted because Jones, while serving as a mediator in the case, failed to disclose that he shared a home with attorney Liz Freeman, who represented Tehum’s

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November 16, 2023 by ATTORNEY
November 2023
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