When it comes to filing bankruptcy, you might say size doesn’t matter. In fact, it’s often helpful, I’ve found, to share news stories about large corporate bankruptcy filings, in order to help Bankruptcy in Indiana readers better understand the way the system works. What we understand better, we fear less, and we’re able to move forward and take positive action to solve our problems. At least that’s been my experience over the twenty-six years I’ve been offering Indiana bankruptcy help.
With that goal in mind of clearing up misunderstandings and debunking myths about bankruptcy, I asked my Anderson, Bloomington, and Columbus bankruptcy lawyer colleagues to pick up recent headline stories about big businesses with bankruptcy cases.
Here are three of those:
1. Kodak Gets Bankruptcy Court OK For Patent Sale
The Kodak Company filed bankruptcy one year ago, and now, in order to raise money to pay some of its debts, Kodak is selling off some of its patents.
When it comes to personal bankruptcy in Indiana, while it can happen that the court orders a debtor’s assets sold to raise money for debt repayment, that’s actually extremely rare. Most clients do not lose any assets at all when filing individual bankruptcy in Indiana. That's because the exemption portion of Indiana bankruptcy law shields those assets and allows the debtor to keep them.
2. American Airlines Wants More Time to File Bankruptcy Plan.
American Airlines, like Kodak, is already in bankruptcy, and is now in the process of pulling together a plan to present to the court so it can exit bankruptcy.
Clients of the Zuckerberg bankruptcy law offices who filed individual bankruptcy under Chapter 13 bankruptcy law will already have filed a 3-5 year debt repayment plan with the court. Once they’ve completed the payments, we will ask the bankruptcy trustee to allow them to exit the bankruptcy. Along the way, if any big changes happen that affect the plan, the debtors, like American Airlines, can ask the court to allow them to amend the plan.
3. Judge: Tully’s Coffee to Go To Dempsey’s Group
My Richmond bankruptcy attorney colleague pointed out an important lesson in this Tully Company story. There were two different parties who wanted to buy the chain – one group led by actor Patrick Demsey, and the Starbucks Company. What’s so interesting is that, even though Starbucks was obviously in a position to offer more money than the Dempsey group, the bankruptcy court rules in favor of Dempsey taking over the chain and preserving the company name Tully.
As a longtime debt consolidation lawyer offering bankruptcy services in Indiana, the lesson I want to present here is that bankruptcy is first and foremost a legal process. In both personal and small business bankruptcy in Indiana, the court is going to have the final say on which debts can be discharged and whether or when a debtor can exit the bankruptcy.
Meanwhile, my function as a consumer bankruptcy specialist is to help my clients navigate their way through that legal system and smoothly and painlessly as possible!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg