Bankruptcy guides – Bankruptcy Basics http://bankruptcy-basics.org/ Wed, 17 Aug 2022 10:01:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bankruptcy-basics.org/wp-content/uploads/2022/02/icon-160x141.png Bankruptcy guides – Bankruptcy Basics http://bankruptcy-basics.org/ 32 32 15 States Where Most People File For Bankruptcy https://bankruptcy-basics.org/15-states-where-most-people-file-for-bankruptcy/ Wed, 17 Aug 2022 07:32:47 +0000 https://bankruptcy-basics.org/15-states-where-most-people-file-for-bankruptcy/ dokurose / Shutterstock.com Editor’s Note: This story originally appeared on smartest buck. The COVID-19 pandemic has given many people in the United States an unexpected financial boost, but with the economy potentially facing a recession, households and businesses could have tough months and years ahead. And after years of encouraging downtrends, that could mean US […]]]>
dokurose / Shutterstock.com

Editor’s Note: This story originally appeared on smartest buck.

The COVID-19 pandemic has given many people in the United States an unexpected financial boost, but with the economy potentially facing a recession, households and businesses could have tough months and years ahead. And after years of encouraging downtrends, that could mean US bankruptcies will once again be front and center.

The impact of the pandemic on consumer debt has been a pleasant economic surprise. Amid government stimulus payments and forbearance policies, increased savings during COVID-19 shutdowns, and a tight labor market with opportunities for wage growth, Americans have made solid progress in debt repayment over the past two years.

But more recently, with inflation eating away at budgets, lenders raising interest rates and some industries suffering major layoffs, households are starting to feel increased financial pressures that could make it harder to pay off their debts.

To determine the states with the most bankruptcies in 2021, Smartest Dollar researchers calculated the number of bankruptcies per million residents. The data used in this analysis comes from the US Courts Administrative Office, the US Census Bureau and Experian.

Here are the states with the most bankruptcies per capita.

15.Missouri

Branson, Missouri
Donna Luck Hall / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 1,590
  • Business bankruptcies per million inhabitants (2021): 24
  • Non-commercial bankruptcies per million inhabitants (2021): 1,566
  • Average Credit Score (2021): 711
  • Unemployment rate (2020): 4.5%

14.Wisconsin

Madison, Wis.
MarynaG / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 1,598
  • Business bankruptcies per million inhabitants (2021): 33
  • Non-commercial bankruptcies per million inhabitants (2021): 1,565
  • Average Credit Score (2021): 735
  • Unemployment rate (2020): 3.6%

13. Illinois

Chicago, Ill.
f11photo / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 1,647
  • Business bankruptcies per million inhabitants (2021): 43
  • Non-commercial bankruptcies per million inhabitants (2021): 1,604
  • Average Credit Score (2021): 719
  • Unemployment rate (2020): 6.0%

12.Michigan

Detroit, Michigan
Harold Stiver / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 1,697
  • Business bankruptcies per million inhabitants (2021): 25
  • Non-commercial bankruptcies per million inhabitants (2021): 1,671
  • Average Credit Score (2021): 719
  • Unemployment rate (2020): 6.0%

11.Delaware

Wilmington, Delaware
Paul Brady Photography / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 1,723
  • Business bankruptcies per million inhabitants (2021): 691
  • Non-commercial bankruptcies per million inhabitants (2021): 1,031
  • Average Credit Score (2021): 714
  • Unemployment rate (2020): 5.8%

10.Utah

Utah
By Fotoluminate LLC / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 1,769
  • Business bankruptcies per million inhabitants (2021): 25
  • Non-commercial bankruptcies per million inhabitants (2021): 1,745
  • Average Credit Score (2021): 727
  • Unemployment rate (2020): 3.6%

9.Ohio

Columbus, Ohio
f11photo / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 1,783
  • Business bankruptcies per million inhabitants (2021): 30
  • Non-commercial bankruptcies per million inhabitants (2021): 1,753
  • Average Credit Score (2021): 715
  • Unemployment rate (2020): 5.3%

8. Arkansas

Little Rock, Arkansas
Henryk Sadura / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 1,824
  • Business bankruptcies per million inhabitants (2021): 41
  • Non-commercial bankruptcies per million inhabitants (2021): 1,783
  • Average Credit Score (2021): 694
  • Unemployment rate (2020): 5.2%

7. Georgia

Atlanta, Georgia, autumn skyline from Piedmont Park
Sean Pavone / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 2015
  • Business bankruptcies per million inhabitants (2021): 45
  • Non-commercial bankruptcies per million inhabitants (2021): 1,970
  • Average Credit Score (2021): 693
  • Unemployment rate (2020): 5.6%

6.Kentucky

frankfurt kentucky
Real Window Creation / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 2,038
  • Business bankruptcies per million inhabitants (2021): 24
  • Non-commercial bankruptcies per million inhabitants (2021): 2014
  • Average Credit Score (2021): 702
  • Unemployment rate (2020): 5.4%

5. Mississippi

Gulf Coast in Biloxi, Mississippi.
Joseph Sohm / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 2,068
  • Business bankruptcies per million inhabitants (2021): 50
  • Non-commercial bankruptcies per million inhabitants (2021): 2018
  • Average Credit Score (2021): 681
  • Unemployment rate (2020): 7.1%

4.Indiana

Indianapolis, Indiana
Alexei Stiop / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 2,163
  • Business bankruptcies per million inhabitants (2021): 29
  • Non-commercial bankruptcies per million inhabitants (2021): 2,134
  • Average credit score (2021): 712
  • Unemployment rate (2020): 4.7%

3. Tennessee

Chattanooga, TN
Kevin Ruck / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 2,280
  • Business bankruptcies per million inhabitants (2021): 33
  • Non-commercial bankruptcies per million inhabitants (2021): 2,247
  • Average Credit Score (2021): 701
  • Unemployment rate (2020): 5.3%

2. Nevada

Reno, Nevada
Don Mammoser / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 2,308
  • Business bankruptcies per million inhabitants (2021): 75
  • Non-commercial bankruptcies per million inhabitants (2021): 2,234
  • Average Credit Score (2021): 701
  • Unemployment rate (2020): 6.6%

1.Alabama

Huntsville Alabama Cityscape Skyline
By Sean Pavone / Shutterstock.com
  • Bankruptcies per million inhabitants (2021): 3,053
  • Business bankruptcies per million inhabitants (2021): 32
  • Non-commercial bankruptcies per million inhabitants (2021): 3,021
  • Average Credit Score (2021): 691
  • Unemployment rate (2020): 5.6%

Methodology

A man studies financial data on his computer
NicoElNino / Shutterstock.com

The data used in this analysis comes from the US Census Bureau American Community Survey (2020)United States Court Administrative Office Bankruptcy filing statisticsand Experian FICO Credit Score by State database.

To determine the states with the most bankruptcies, Smartest Dollar researchers calculated the number of bankruptcies per million residents. The number of bankruptcies is for the year 2021, while the demographic data is for 2020, which is the latest data available. Note that the unemployment rates used for the analysis relate to persons aged 16 and over.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our stories.

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A Guide to Navigating the Impact of Bankruptcy on IP Licensing https://bankruptcy-basics.org/a-guide-to-navigating-the-impact-of-bankruptcy-on-ip-licensing/ Mon, 15 Aug 2022 20:10:00 +0000 https://bankruptcy-basics.org/a-guide-to-navigating-the-impact-of-bankruptcy-on-ip-licensing/ By Robert Eisenbach and Evan Lazerowitz (August 15, 2022, 4:10 p.m. EDT) — With a potential recession on the horizon, intellectual property licensees may increasingly find their licensors seeking protection in under Chapter 11 of the Bankruptcy Code. For many companies, especially those in the life sciences and technology sectors, intellectual property, including licensed intellectual […]]]>
By Robert Eisenbach and Evan Lazerowitz (August 15, 2022, 4:10 p.m. EDT) — With a potential recession on the horizon, intellectual property licensees may increasingly find their licensors seeking protection in under Chapter 11 of the Bankruptcy Code.

For many companies, especially those in the life sciences and technology sectors, intellectual property, including licensed intellectual property, can be their most valuable asset.

It is therefore essential that licensors and licensees of intellectual property understand how their licenses will be treated in the event of bankruptcy and consider ways to protect their license rights in the event of bankruptcy.

This article explores some of the important questions left open by the United States Supreme Court’s landmark 2019 decision in Mission…

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Ex-Kerkhoven mayor, Willmar lawyer faces jail time for bankruptcy fraud – West Central Tribune https://bankruptcy-basics.org/ex-kerkhoven-mayor-willmar-lawyer-faces-jail-time-for-bankruptcy-fraud-west-central-tribune/ Fri, 12 Aug 2022 21:06:00 +0000 https://bankruptcy-basics.org/ex-kerkhoven-mayor-willmar-lawyer-faces-jail-time-for-bankruptcy-fraud-west-central-tribune/ ST. PAUL — The former mayor of Kerkhoven and the Willmar attorney who represented him face jail time after reaching plea deals in federal court in Minnesota for fraud. James Alan Rothers, 56, who resigned as mayor of Kerkhoven in early 2017 amid controversy over a rezoning request and a tower he erected, reached a […]]]>

ST. PAUL — The former mayor of Kerkhoven and the Willmar attorney who represented him face jail time after reaching plea deals in federal court in Minnesota for fraud.

James Alan Rothers, 56, who resigned as mayor of Kerkhoven in early 2017 amid controversy over a rezoning request and a tower he erected, reached a plea deal in court of the United States District of Minnesota in November 2019 in which he pleaded guilty to a charge of fraud concealing bankruptcy assets. He is expected to be sentenced in December, according to information from Assistant US Attorney David MacLaughlin’s office.

The offense is punishable by up to five years in prison. According to the plea agreement, the sentencing guidelines call for a sentence of 18 to 24 months in prison, but the sentence is at the discretion of the court.

Gregory Anderson

Contributed

Attorney Gregory Alan Anderson, 63, represented Rothers in a Chapter 7 bankruptcy petition. Anderson reached a plea agreement in federal district court on August 8 in which he pleads guilty to one count of fraudulent concealment of bankruptcy assets. One count of conspiracy to commit mail and wire fraud would be dismissed.

His offense is also punishable by a five-year prison sentence. According to Anderson’s plea agreement, sentencing guidelines call for a jail term of 24 to 30 months, but that’s also at the court’s discretion.

As part of the agreement, Anderson agrees to be voluntarily excluded from the practice of law. He also agrees to testify honestly at upcoming plea and sentencing hearings. Anderson began practicing law in 1987 but is currently retired.

Rothers filed for Chapter 7 bankruptcy in November 2015 in court. The charges allege that he and Anderson fraudulently concealed from court $1,242,484 in assets belonging to Rothers.

jim-rothers.jpg

An undated handout photo of Jim Rothers, the former mayor of Kerkhoven who pleaded guilty to fraudulent concealment of bankruptcy assets.

Contributed

The charges say Rothers hid the following: $100,000 in gold coins in Fargo, North Dakota; approximately $686,000 in an ABC Bin Company deposit at Northwest Bank in Iowa; and cash receivables, in the form of uncashed checks, totaling $455,484.25.

An original motion for disciplinary action against Anderson accused him of representing Rothers in various business and personal matters beginning in 2003.

“The Respondent worked with Mr. Rothers to assist Mr. Rothers in hiding assets from his creditors and his wife,” the petition states. He alleges “that he knowingly misrepresented facts, knowingly and dishonestly omitted material facts and failed to take reasonable corrective action when the defendant knew that Mr. Rothers had made material misrepresentations of facts to a court”.
According to federal court documents, Anderson created false liabilities to make it appear that Rothers was insolvent when, in fact, Rothers could easily have paid all of his creditors.

Specifically, Anderson arranged for a sham suit to be filed against Rothers, and then ordered Rothers to default in that suit. This created a judgment of approximately $608,000 against Rothers to make it appear that he was insolvent.

Anderson also created documents showing that an Iowa company had loaned Rothers $240,000 and that Rothers had an obligation to repay that loan. The loan was entirely bogus and created to bolster Rothers’ appearance of insolvency.

In Chapter 7 bankruptcy, a trustee liquidates a debtor’s assets, other than certain exempt property, and uses the proceeds to pay creditors.

James Rothers is pictured on the far right presiding as mayor over a 2017 Kerkhoven city council meeting where his rezoning request and tower were debated.

James Rothers is pictured on the far right presiding as mayor over a 2017 Kerkhoven city council meeting where his rezoning request and tower were debated.

Contributed

The investigation that led to the charges against Rothers and Anderson follows a complaint filed in January 2017 by the trustee of creditors involved in Rothers’ bankruptcy filing.

Montevideo attorney Richard Stermer accused Rothers of having “hidden assets in the bankruptcy on behalf of corporations or with his significant other, Stephanie Voxland.”
Among the allegations against Rothers in federal court were allegations that he placed assets in bogus companies and set up an offshore company on the Caribbean island of Nevis.

Rothers resigned as mayor just months into his term in 2017. He sued the city over a 54-foot-tall concrete tower he built on his property along the US Highway 12 in Kerkhoven. The city council had denied his request to rezone the commercial property he had remodeled and made his home.

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What happens if you declare bankruptcy in Singapore? https://bankruptcy-basics.org/what-happens-if-you-declare-bankruptcy-in-singapore/ Wed, 10 Aug 2022 02:40:44 +0000 https://bankruptcy-basics.org/what-happens-if-you-declare-bankruptcy-in-singapore/ In 2021, there were around 3,100 bankruptcy applications in Singapore. The number had increased from the previous year, due to the negative economic impact of the COVID-19 pandemic. However, the good news is that the number of bankruptcy cases has dropped by more than 20% since the 1990s, and that number has been falling ever […]]]>

In 2021, there were around 3,100 bankruptcy applications in Singapore. The number had increased from the previous year, due to the negative economic impact of the COVID-19 pandemic. However, the good news is that the number of bankruptcy cases has dropped by more than 20% since the 1990s, and that number has been falling ever since.

Declaring bankruptcy is often considered a last resort. In fact, in many Asian countries, parents would often joke with their children about how they would sell them to avoid going bankrupt.

However, bankruptcy shouldn’t be as taboo as it deserves. In reality, it’s actually a financially sound decision to pay off your debts, in order to save yourself a lifetime of financial hardship.

What does it mean for someone to declare bankruptcy?

Simply put, bankruptcy is when someone owes more money than they can pay.

According to Bankruptcy Act (Chapter 20), a person can declare bankruptcy as long as they owe and cannot repay debts greater than $15,000. However, filing for bankruptcy can be involuntary because it is also possible for creditors to take legal action against the borrower, if the latter is unable to repay his debts.

In 2020, due to Covid-19, the threshold for action against debtors was temporarily raised. The debt threshold for individual bankruptcy has been increased from $15,000 to $60,000. Individuals also have 6 months, instead of just 21 days, to respond to requests from creditors before being deemed unable to repay their debts.

However, please note that these measures ended on October 19, 2020 and are no longer in effect.

After assessment by the High Court, a person can be declared legally bankrupt within 4-6 weeks of application, either by themselves or their creditors.

Although many people see bankruptcy as the end, it is not. Instead, it’s a “reset,” where debtors are protected to rebuild their finances from scratch.

Bankruptcy achieves this in three ways:

  • It effectively freezes your debts, suspending any further interest charges on your capital.
  • It offers you an alternative payment plan. This means payments are likely to be more manageable, unlike before when you probably struggled to keep up with high interest rate payments.
  • It protects you from being sued for your debts. Bankrupts are protected by law from lawsuits by creditors to recover debts incurred.

How will bankruptcy affect you?

Finances controlled on a tight leash

A portion of a bankrupt’s income will be deducted and paid into his bankruptcy estate. Contributions accumulated in the bankruptcy estate will be distributed to their creditors upon discharge from bankruptcy.

For the rest of their salary, a strict registration will have to be made in an inventory. A court-appointed officer, otherwise known as an Official Assignee (OA), will perform periodic checks.

This means that every expense will require documentation, and for those deemed unnecessary or excessive, strong justification will be required. For example, if a bankrupt needed to pay for a taxi instead of taking the bus, there would have to be a very good reason why they would do so – perhaps an emergency medical situation might do the trick.

By documentation, it also means that receipts for anything purchased must be kept and accounted for, which is downright inconvenient.

In addition, bankrupts must seek permission from their official assignee or the High Court to run a business or hold a position as a director in a business.

Public disclosure of your bankruptcy status

When declaring bankruptcy, the name of the bankrupt will be entered Singapore Bankruptcy Register, which is open to the public to search freely. This can include potential employers, clients and family members.

If one is already employed, their employers will be notified. Although this usually does not result in dismissal, it can eventually ruin career prospects. For example, a company is unlikely to promote a bankrupt to a management position. On the other hand, finding another job will be difficult, because bankruptcy will be a huge stain on our CV.

Overall, your career prospects will definitely be negatively affected.

No overseas travel

Bankrupts will need to obtain approval from their official assignee if they wish to travel internationally. Outside of employment reasons, this is rarely approved.

A bankrupt who travels abroad without permission may be prevented by the Immigration Controller from leaving Singapore and their passport confiscated by the Immigration and Checkpoints Authority (ICA).

Credit score affected

Bankruptcy will cause a drop in credit score. This will severely affect their ability to apply for loans, credit cards and mortgages even if the bankrupt was discharged years ago.

With a terrible credit score, it’s hard to start any type of business without being able to qualify for a business loan. It can take many years, even decades, for a bankrupt to slowly rebuild their credit rating, and even so, there is no guarantee that they will be able to achieve their rating prior to bankruptcy.

So what are the different levels of credit risk ratings assigned to individuals? Our guide here explains this in detail.

Coming out of bankruptcy

two people discussing legal

Fortunately, bankruptcy is not an irremovable mark on your record. Under the right circumstances, you can be discharged from bankruptcy, or even have it canceled altogether.

A bankruptcy discharge means that you retain your previous bankrupt status. The cancellation of the bankruptcy file will only take place after five years and all debts have been paid.

Meanwhile, an annulment means being treated as having never been declared bankrupt. Your name will also be struck from the bankruptcy register, which is perhaps the most important part of an annulment, and will go a long way towards getting your life back on track.

You can get out of bankruptcy in three ways:

Method
Results
  • Repay the entire debt in full, or
  • Make a settlement offer accepted by a majority of creditors representing at least 75% of the total debt due
A cancellation certificate will be issued
Ask the High Court to grant a discharge order. The High Court will consider the views of the official assignee and creditors, as well as other factors. If approved: A release order will be issued.
The official assignee may discharge a bankrupt after considering many factors, provided that:

  • At least three years have passed since the beginning of the bankruptcy
  • Proven debts do not exceed S$500,000
A discharge order will be issued.

However, most people don’t see discharge as the end of bankruptcy. What usually follows a discharge or cancellation is an extensive bankruptcy rehabilitation process to repair your credit, under the guidance of credit counseling singapore.

Is declaring bankruptcy worth it to escape debt?

debt in front of coins

Declaring bankruptcy gives you immunity from prosecution for non-repayment of your debts, stops debt collection actions against you, as well as the suspension of the interest rate on your debts. As a result, many people might view bankruptcy as an attractive solution to their growing payments.

The answer is largely no.

Apart from the massive inconveniences that bankruptcy status brings, such as restricting and tracking your expenses, it also imposes great restrictions on your salary and travel. Your possessions (anything of value belonging to you) will be seized and sold, even though they may have sentimental value to you.

However, some assets are protected by law from seizure, and they include:

  • Your HDB apartment
  • Money in your CPF account
  • Life insurance policies held in trust for your spouse or children
  • Equipment or tools needed for your job
  • Furniture required for your family’s daily needs

So unless you are willing to give up anything else except the above, bankruptcy is not the right solution to escaping debt. Moreover, after declaring bankruptcy, your credit score as well as your public reputation will be severely damaged, which will lead to even more problems down the road.

Instead, there are better alternatives to debt reduction. Bankruptcy is certainly not one of them, unless you really have no more options.

Conclusion

Ultimately, bankruptcy is a painful but sometimes necessary step to lighten your financial situation. The important thing is not to see it as a terminal condition, but to take steps to recover. Part of this is improving your credit score – which applies to all of us, not just bankruptcy victims. You can learn more about increasing your score in no time with our guide here.

Read also :

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New restructuring regime in Hungary – Insolvency/Bankruptcy https://bankruptcy-basics.org/new-restructuring-regime-in-hungary-insolvency-bankruptcy/ Tue, 09 Aug 2022 18:25:28 +0000 https://bankruptcy-basics.org/new-restructuring-regime-in-hungary-insolvency-bankruptcy/ August 09, 2022 Wolf Theiss To print this article, all you need to do is be registered or log in to Mondaq.com. The arrival of the long-awaited restructuring law Due to the transposition of Directive (EU) 2019/1023 through the Restructuring Act, which entered into force on July 1, 2022, a new preventive restructuring […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

The arrival of the long-awaited restructuring law

Due to the transposition of Directive (EU) 2019/1023 through the Restructuring Act, which entered into force on July 1, 2022, a new preventive restructuring framework under Hungarian law is now applicable.1

Objective of the restructuring in general

The essence of restructuring is that companies in financial difficulty, when there is a risk of insolvency with a view to preventing insolvency and ensuring the economic viability of the company, enter into negotiations with all or part of their creditors and include the results of these negotiations of a restructuring plan.

The novelties of the new act in brief

  • According to the new restructuring rules, the debtor can decide on the restructuring if there is a risk of insolvency. A probability of insolvency means a situation in which there are reasonable grounds to believe that the debtor will not be able to meet its outstanding payment obligations when due, unless other measures are taken.

  • The request for the opening of restructuring proceedings is submitted by the debtor. Creditors cannot initiate restructuring proceedings, but in the rest of the proceedings creditors are granted special procedural rights.

  • Suspension of individual proceedings (moratorium) means a temporary suspension, granted by the court, of the right of a creditor to assert a claim against a debtor. The debtor can ask the court to order a moratorium (a moratorium is not an automatic consequence of the opening of restructuring proceedings). The moratorium may be general, covering all creditors, or it may be limited, covering one or more individual creditors or categories of creditors specified by the debtor. This demonstrates the debtor’s significant control over the restructuring process. The duration of the stay is defined by the debtor, but it is limited to a maximum period of 4 months. The total duration of the moratorium, including extensions and renewals, cannot exceed 12 months.

  • The objective of restructuring is to adopt and implement a restructuring plan with all or some of the creditors and thus prevent the future insolvency of the debtor and ensure the financial viability of the debtor. Classes of creditors vote on whether or not to accept the proposed restructuring plan, and final confirmation is up to the court. In the restructuring procedure, it is possible to replace dissenting creditors with a majority of creditors (“cross-class cram-down”).

  • For the purposes of the adoption of the restructuring plan, the claims of the creditors concerned are grouped into the following categories: (i) claims of secured creditors, (ii) claims of creditors linked to the economic activity of the debtor, (iii) claims other creditors, and (iv) claims of creditors resulting from a transaction that affect the debtor. This order of classes of creditors does not constitute a satisfaction order.

  • The court appoints, upon request or in the cases and under the conditions provided by law, a restructuring practitioner who assists the parties in the negotiation and development of the restructuring plan and supervises the debtor’s activities during the negotiations of the plan. of restructuring.

  • The restructuring runs from its start date until the closing date of the implementation of the restructuring plan or until the failure of the restructuring.

Expected effects on practice

The new Restructuring Act provides the missing legal framework in the area of ​​insolvency proceedings. In the restructuring procedure, the objective of the restructuring plan is new, and the concept of “interclass cram-down” and the test of “creditors’ interest” are also new.

This new set of rules offers a number of tools to ensure successful restructuring, including:

  • the intervention of a restructuring practitioner,

  • the new financing provided by the creditors for the implementation of the restructuring plan,

  • and interim financing provided by creditors to allow the debtor to continue its activities while individual lawsuits are suspended.

It remains to be seen whether the new restructuring procedure will change the approach of debtors and creditors, as the procedure can be largely controlled by the parties unlike bankruptcy and liquidation procedures.

For more information on the subject of restructuring, you can access the Wolf Theiss Guide – Changing restructuring frameworks.

Footnote

1 Restructuring Act No. LXIV of 2021, Implementing Directive (EU) 2019/1023 on Restructuring and Insolvency

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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Tuesday morning (TUEM) shares explode 32% amid bankruptcy talk https://bankruptcy-basics.org/tuesday-morning-tuem-shares-explode-32-amid-bankruptcy-talk/ Tue, 09 Aug 2022 15:25:58 +0000 https://bankruptcy-basics.org/tuesday-morning-tuem-shares-explode-32-amid-bankruptcy-talk/ Source: Room Studio / Shutterstock Tuesday morning (NASDAQ:TUEM) stocks soar today as investors rise in stocks amid talk of a potential bankruptcy filing. The TUEM stock has had a tough time lately. Reports now claim that the company is considering filing for bankruptcy protection. This, next to the recent loss of its CFO and reductions […]]]>

Source: Room Studio / Shutterstock

Tuesday morning (NASDAQ:TUEM) stocks soar today as investors rise in stocks amid talk of a potential bankruptcy filing.

The TUEM stock has had a tough time lately. Reports now claim that the company is considering filing for bankruptcy protection. This, next to the recent loss of its CFO and reductions in forecastshas dragged stocks lower in recent weeks.

However, it now appears that meme traders are seeing all of this as a green light to invest in TUEM stocks. As a result, stocks are climbing today with intense trading. Some 31 million shares are traded to date; the company’s average daily trading volume is closer to 1.9 million shares.

The idea of ​​Tuesday Morning’s bankruptcy filing has merit. The company already had to do this at the start of the pandemic. Given the duration of Covid-19, it makes sense that Tuesday morning is still in trouble.

The current state of the economy is also adding fuel to the fire. Inflation continues to weigh on consumers, as do recession fears. These additional factors easily explain why the retail business might still face financial problems.

Traders considering a stake in TUEM shares will want to be cautious, however. Its low market capitalization of around $40 million and price below $5 make it a penny stock. This means that traders can easily manipulate the stock price.

TUEM stock is up 32% at the time of this writing, but down more than 70% since the start of the year.

Investors looking for the latest stock market news will want to keep reading!

We have all the hottest stock market news traders need to know for Tuesday! This understands why the shares of Clover Health (NASDAQ:CLOV), Verona Pharma (NASDAQ:RNAV) and Lemonade (NYSE:LMND) stocks are all in the headlines today. You can find out all about it at the following links!

More Tuesday stock market news

On Penny Stocks and Low-Volume Stocks: With rare exceptions, InvestorPlace does not publish commentary on companies with a market capitalization of less than $100 million or trading fewer than 100,000 shares per day. This is because these “penny stocks” are often the playground of scammers and market manipulators. If we ever post comments on a low-volume title that may be affected by our comments, we require thatInvestorPlace.comThe authors of disclose this fact and warn readers of the risks.

Read more:Penny Stocks – How To Profit Without Getting Scammed

As of the date of publication, William White has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

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Introduction of the new Cayman Islands Restructuring Agent Regime – Insolvency/Bankruptcy https://bankruptcy-basics.org/introduction-of-the-new-cayman-islands-restructuring-agent-regime-insolvency-bankruptcy/ Fri, 05 Aug 2022 19:23:19 +0000 https://bankruptcy-basics.org/introduction-of-the-new-cayman-islands-restructuring-agent-regime-insolvency-bankruptcy/ To print this article, all you need to do is be registered or log in to Mondaq.com. -The long-awaited and welcome reforms to the Cayman Islands Restructuring and Insolvency Laws will come into force on August 31, 2022. These significant amendments to Part V of the Cayman Islands Companies Act (“Companies Act“) will introduce a […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

-The long-awaited and welcome reforms to the Cayman Islands Restructuring and Insolvency Laws will come into force on
August 31, 2022.

These significant amendments to Part V of the Cayman Islands Companies Act (“Companies Act“) will introduce a new restructuring agent scheme available to companies in financial difficulty, which will be accessible without the need to petition for liquidation in the Cayman Islands Grand Court (the “Cayman Court“). Upon filing the application for the appointment of restructuring agents, companies will be able to obtain an immediate, stand-alone restructuring moratorium on action by unsecured creditors that will have extraterritorial effect (under Cayman Islands law ), under which restructuring can be proposed and implemented.

The main features of the new restructuring regime will be the following:

  • Businesses may petition the Cayman Court for the appointment of a restructuring agent on the grounds that: (i) the business is or is likely to become unable to pay its debts; and (ii) intends to present a Compromise or Arrangement to its creditors (or classes thereof) either, in accordance with the Companies Act (for example through a Cayman Islands Arrangement), a law foreign or through consensual restructuring.

  • The petition requesting the appointment of a Restructuring Officer may be presented by the directors of a company: (i) without a shareholder resolution and/or express power to petition in its articles of association; and (ii) without the need to file a liquidation petition as a condition precedent.

  • A stand-alone restructuring moratorium on the action of unsecured creditors will automatically arise upon the filing of the application for the appointment of restructuring agents, which will have extraterritorial effect, in accordance with Cayman Islands law (previously the moratorium only took effect to the appointment of provisional liquidators rather than filing the request).

  • The Cayman Islands Schemes of Arrangement can now potentially compromise debt governed by English law, thus broadening the scope of the Cayman Islands Restructuring Regime to more debt restructuring situations.

  • Secured creditors with a security interest in some or all of the Company’s assets will remain entitled to enforce their security interest without permission from the Cayman Court and without reference to a restructuring agent.

Another significant legislative reform is the removal of the “majority in number” or “count” test for shareholder arrangements, so that only the “majority in value” test need be met to approve a shareholder arrangement. shareholders proposed to the meeting(s).

Further details on the new restructuring agent regime and other changes to the Companies Act can be found here:

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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This guide is aimed at local and international solicitors, general counsel and senior managers who wish to understand the key elements of insolvency proceedings in Ireland.

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Distressed Opportunities Newsletter – Issue 13 – Insolvency/Bankruptcy https://bankruptcy-basics.org/distressed-opportunities-newsletter-issue-13-insolvency-bankruptcy/ Fri, 05 Aug 2022 09:17:54 +0000 https://bankruptcy-basics.org/distressed-opportunities-newsletter-issue-13-insolvency-bankruptcy/ August 05, 2022 Ice Miller srl To print this article, all you need to do is be registered or log in to Mondaq.com. Ice Miller launched its Distressed Investment Group (“DIG”) to identify and facilitate distressed investment opportunities and assist clients through creative and strategic acquisitions and investments in bankruptcies, legal restructurings, out-of-court restructurings and […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

Ice Miller launched its Distressed Investment Group (“DIG”) to identify and facilitate distressed investment opportunities and assist clients through creative and strategic acquisitions and investments in bankruptcies, legal restructurings, out-of-court restructurings and other insolvency-related transactions.

DIG is comprised of some of Ice Miller’s most experienced and enterprising lawyers in bankruptcy, corporate restructuring, finance, real estate, mergers and acquisitions, corporate and tax. Its members have significant experience in advising clients on loan-to-purchase strategies, debt and equity sales and restructurings, recapitalizations, note purchase loans, debtor-in-possession and exit financings. , debt trading, distressed real estate acquisitions, Section 363 sales, bailout capital deployment and other insolvency and special situations transactions in Chapter 11 cases and proceedings , disputes in the event of default of payment, restructurings, seizures, acts in lieu of seizure, sales under Article 9, assignments for the benefit of creditors and receiverships .

DIG members regularly advise investment funds, private and institutional investors, lenders, private equity firms, operators and other interested parties in all aspects of distressed strategic investing and transactions. related. Its members frequently act as bond counsel, issuer counsel, bank counsel, and underwriter counsel in a variety of taxable and tax-exempt municipal financings involving hospitals, health systems, residential seniors, single and multi-family housing projects, airports, 501(c)(3) organizations, state and local government issuers, and municipal power agencies.

DIG members also have significant experience representing private and institutional investors, including private equity real estate funds and REITs, developers and operators in the acquisition, redevelopment and operation of property. distressed real estate across various asset classes.

Visit our webpage

OPPORTUNITIES IN THE DISTRESSED MARKET

Please click here to view the full PDF of distressed investment opportunities currently available.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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What we read this week [July 22, 2022]

Mayer Brown

Shareholders in the Revlon bankruptcy have demanded that a formal committee of shareholders, unaffiliated with majority owner of the debtor-retailer Ron Perelman, be named in the case.

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Ortiz & Ortiz, law firm offers experienced bankruptcy assistance in New York NY https://bankruptcy-basics.org/ortiz-ortiz-law-firm-offers-experienced-bankruptcy-assistance-in-new-york-ny/ Wed, 03 Aug 2022 20:25:22 +0000 https://bankruptcy-basics.org/ortiz-ortiz-law-firm-offers-experienced-bankruptcy-assistance-in-new-york-ny/ Ortiz & Ortiz, LLP is the law firm calling for bankruptcy assistance in New York, NY. The law firm is experienced in Chapter 7 and Chapter 11 bankruptcy proceedings. Ortiz & Ortiz, LLP are pleased to announce that they offer comprehensive services to clients interested in estate planning, asset protection and bankruptcy. The experienced and […]]]>

Ortiz & Ortiz, LLP is the law firm calling for bankruptcy assistance in New York, NY. The law firm is experienced in Chapter 7 and Chapter 11 bankruptcy proceedings.

Ortiz & Ortiz, LLP are pleased to announce that they offer comprehensive services to clients interested in estate planning, asset protection and bankruptcy. The experienced and the connoisseur Ortiz & Ortiz, LLP – bankruptcy attorneys have the skills to help clients protect and improve their financial situation. The ability to plan ahead is essential to managing and protecting their assets. Asset protection is a crucial part of estate planning to ensure that more assets can be easily transferred to loved ones as stated in the will, rather than being lost to creditors.

According to Ortiz & Ortiz, LLP List LawInfo, the firm focuses on areas where it can help its clients take control of their specific financial situation. Lawyers help plan asset management. In the short term, financial difficulties may be best resolved by declaring bankruptcy. Lawyers are experienced in Chapter 7 and Chapter 11 bankruptcies. Chapter 7, or liquidation bankruptcy, involves the liquidation of assets by the court to pay off lenders and creditors. Certain assets are protected in such a bankruptcy. The legal team will help clients determine the appropriate time to declare bankruptcy and guide them through the filing process.

A Chapter 11 bankruptcy is a type of financial reorganization of a company or business, but can also be used by individuals. Chapter 11 allows debtors to create a repayment plan. Ortiz & Ortiz lawyers will assist clients with a comprehensive analysis of their financial situation. Lawyers guide clients through the filing process and provide representation in court or before creditors. This advice allows decisions to be made based on the client’s unique financial situation.

Other services available from the New York-based legal team include creating a tool known as a trust, which can be used to manage assets in the correct form for future use by members of the family. An important part of asset protection and planning is the creation of a will. This document guarantees that the estate is distributed according to the wishes of the benefactor.

About the company:

Ortiz & Ortiz, LLP is a New York-based legal team with experienced skills in estate planning, bankruptcy and asset protection. Experienced attorneys work with clients to create action plans regarding financial issues related to asset protection.

Media Contact
Company Name: Ortiz & Ortiz, LLP
E-mail: Send an email
Call: (718) 522-1117
Address:287 Park Avenue South Ste. 213
Town: New York
State: NY 10010
Country: United States
Website: https://ortizandortiz.com/

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The meeting of creditors leads to a favorable result for Enova companies – Insolvency/Bankruptcy https://bankruptcy-basics.org/the-meeting-of-creditors-leads-to-a-favorable-result-for-enova-companies-insolvency-bankruptcy/ Wed, 03 Aug 2022 05:03:45 +0000 https://bankruptcy-basics.org/the-meeting-of-creditors-leads-to-a-favorable-result-for-enova-companies-insolvency-bankruptcy/ August 03, 2022 Cathro & Partners To print this article, all you need to do is be registered or log in to Mondaq.com. Enova Community Energy and Enova Energy creditors voted in favor of deeds of corporate arrangement (DOCA) for each company that will allow the entities to avoid liquidation and facilitate a […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

Enova Community Energy and Enova Energy creditors voted in favor of deeds of corporate arrangement (DOCA) for each company that will allow the entities to avoid liquidation and facilitate a better return for creditors.

The promoter was Energy Locals who purchased parts of the business and structured the purchase in the form of DOCAs for each entity. For Enova Energy’s creditors, its DOCA also allows for a return to creditors when a payment is made to the DOCA when former Enova Energy customers switch to Energy Locals.

Cathro & Partner Director Simon Cathro, who manages the voluntary administration, commented: “This is the outcome that we have recommended and are working towards with Enova. Last resort and move to connect with Energy Locals. With these past customers doing this, it translates into funds going to the Enova DOCA and a better return for Enova Energy’s creditors.

According to Enova Managing Director and CEO Felicity Stening, today was a positive step forward in what has been a disappointing development for the company.

“Today we have developed a plan to deliver a good return to creditors. While we are deeply saddened by the events of the past few months, we are committed to meeting our obligations and ensuring our stakeholders are taken care of. charge.”

Last month, the Enova Community Energy Board announced that Enova Community Energy and Enova Energy, its retail electricity arm, had been placed into voluntary administration.

This announcement follows a difficult period where Enova was unable to obtain adequate coverage of wholesale energy prices following the termination of an agreement with Diamond Energy and its limitations due to a cap on customer prices.

Although Enova’s board and management team worked tirelessly to explore all options to ensure the continuation of the business, voluntary administration was the last resort to prevent transactions in the event of a insolvency.

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The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR ARTICLES ON: Insolvency/Bankruptcy/Restructuring from Australia

Court imposes travel ban on director

Corrs Chambers Westgarth

A recent decision recalls the broad powers available to courts to hold individuals accountable before a company in liquidation.

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