Whether or not the city of Jacksonville, Texas gets back its rodeo arena doesn’t sound like something that might interest you if you’re filing individual bankruptcy in Indiana or even small business bankruptcy in Indiana – but it is.’
That’s because the story of Lon Morris College’s bankruptcy in Texas serves as a very good illustration of the way the new bankruptcy laws of Indiana work.
With five Zuckerberg bankruptcy law offices around central and southern Indiana, we attorneys see many different situations, some quite simple and straightforward, others very complex. But as one of my Columbus bankruptcy lawyer colleagues observes, complex is more common.
Clients own assets jointly with others. Clients are co-signators on leases, loans, and mortgages. Clients have all kinds of business deals going on. What that all means is that filling out the paperwork to submit to the bankruptcy court is no do-it-yourself deal.
Lon Morris College, as part of their bankruptcy petition, is requesting permission to sell all of its property, including all its buildings and land, in a cash auction. The idea, as every lawyer for bankruptcy knows, is to raise cash to pay creditors. Simple, no? Ummm….no!
Back in 2009, the rodeo arena was deeded to the college so they could have more space for agricultural programs.
There were three parties to the agreement: the city of Jacksonville, the rodeo association, and the college.
- The college was given seven years to complete improvements to the arena a rec center. If those were not done, the property would revert back to the city.
OK, so why is this relevant to Hoosiers needing Indiana bankruptcy help? Because, over my 26 years as a debt consolidation lawyer offering bankruptcy services in Indiana, I’ve found there’s always something, some complication that needs to be thought about, planned around, and added to the bankruptcy petition.
Now, the principle behind bankruptcy law is to treat all parties – debtors and creditors – fairly.
So when one partner in a small business files personal bankruptcy in Indiana, the other partners will be affected. When one spouse files bankruptcy the other spouse will be affected.
More often than not, it’s a fairly tangled web we weave with our finances. A big part of my work as a bankruptcy attorney is untangling those webs!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg