Former Kentucky Wildcat filed for personal bankruptcy on May 18. The former NBA star lists over 1 million dollars in gambling debts in the filing. Walker made more than $110 million during his NBA career, but is currently reporting only $4.3 million in assets. See the story in the Wall Street Journal.
Continue → ShareThere are two common types of personal bankruptcy in the U.S. They are called Chapter 7 bankruptcy and Chapter 11 bankruptcy because of their location in the bankruptcy code. If one considers filing for bankruptcy, a bankruptcy attorney will help determine the best option after reviewing assets, debts, life situation, and local and federal law.
A filing under Chapter 7 is called liquidation, and it is the most common. In a chapter 7 proceeding, a trustee collects the non-exempt property of ...
Continue → Shareadversary proceeding
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A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court. A nonexclusive list of adversary proceedings is set forth in Fed. R. Bankr. P. 7001.
assume
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An agreement to continue performing duties under a contract or lease.
automatic stay
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An injunction that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.
bankruptcy
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A ...
equity
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The value of a debtor’s interest in property that remains after liens and other creditors’ interests are considered. (Example: If a house valued at $100,000 is subject to a $80,000 mortgage, there is $20,000 of equity.)
executory contract or lease
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Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed. (If a contract or lease is executory, a debtor may assume it or reject it.)
exemptions, exempt property
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Certain property ...
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The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.
liquidation
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A sale of a debtor’s property with the proceeds to be used for the benefit of creditors.
liquidated claim
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A creditor’s claim for a fixed amount of money.
means test
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Section 707(b)(2) of the Bankruptcy Code applies a “means test” to determine whether an individual debtor’s chapter 7 filing is presumed to be an abuse ...
Continue → SharePersonal bankruptcy is an option when an individual has too much debt and cannot keep up with their financial obligations. The US Bankruptcy Code was amended in 2005 and added new requirements for those filing bankruptcy. As a result, many fewer Americans filed bankruptcy in 2006. However, the housing market bust, recession, credit crunch and other factors in personal finance are driving the rate of bankruptcy back up, despite the changes in the law.
Continue → Shareparty in interest -
A party who has standing to be heard by the court in a matter to be decided in the bankruptcy case. The debtor, the U.S. trustee or bankruptcy administrator, the case trustee and creditors are parties in interest for most matters.
petition preparer -
A business not authorized to practice law that prepares bankruptcy petitions.
plan -
A debtor’s detailed description of how the debtor proposes to pay creditors’ claims over a fixed period of time.
plaintiff -
A person or business that ...
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Any mode or means by which a debtor disposes of or parts with his/her property.
trustee -
The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administrator. The trustee is a private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases and some chapter 11 cases. The trustee’s responsibilities ...
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