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News of a company’s bankruptcy is understandably nerve-wracking for its employees. However, a bankruptcy filing doesn’t automatically mean that every employee is out of a job. It largely depends on the type of bankruptcy that was filed. Employee Layoffs If a company files for Chapter 7 liquidation, it no longer intends to operate its business. […]
The current version of the Bankruptcy Code makes it cost prohibitive for small businesses to seek relief intended by a Chapter 11 bankruptcy reorganization. However, a bi-partisan effort has sought to make a reorganization possible for businesses with debt less than $2.5 million. The Small Business Reorganization Act of 2018 would make a Chapter 11 […]
Agricultural Lending Institutions are Consolidating Consolidation has been a trend in financial institutions for years, but no sector has experienced a greater amount of consolidation than banks in rural America. In the 1980’s there were approximately 15,000 community banks serving local communities – currently there are less than 5,000. Since 2010, mergers increased from 173 […]
An Overview of the Bankruptcy Ramifications for Debtors who are Beneficiaries or Trustees of a Trust with a Spendthrift Clause Prepared for the Tucson Tax Study Group – October 21 2016 By Isaac D. Rothschild1 and Elissa Harshman2 Spendthrift Clauses in Bankruptcy Federal law creates a bankruptcy estate, but it is state law that defines the […]
The State of Arizona remains largely dependent on agriculture and ranching, which is the second largest source of revenue for Arizona at over $10.3 billion. With more than 15,000 farms and ranches in the state and more than 94% of them family operated, it is likely that each of us knows someone who has been […]
Many lenders and lessors require that the borrower (or lessee) provide someone to guarantee the obligations through one or more guaranties. The theory of this requirement is that an individual or entity with substantial net worth or assets beyond the business-entity debtor will make sure that there is performance on the underlying obligation. However, what […]
Sales transactions typically close only when the two sides are in agreement and satisfied with the benefit they will receive. In some cases, a property owner’s bankruptcy can be a tool to facilitate the transaction by allowing property to transfer free of liens, claims, and interests. However, at other times a bankruptcy – even a […]
1. ABANDONMENT. Order of the Bankruptcy Court or trustee disavowing any interest of the bankruptcy estate in particular property. (§ 554 of the Bankruptcy Code). 2. ADEQUATE PROTECTION. That which need be afforded a secured creditor to enable a debtor to use the bankruptcy stay to hold off creditor’s attempts to foreclose. Adequate protection can […]
Before and/or shortly after the filing of a Chapter 11 petition, the debtor and debtor’s counsel should consider the following issues. 1. CORPORATE RESOLUTION. Where the debtor is a corporation or an entity controlled by an agreement between its principals, the debtor should follow the procedures articulated therein, so that the act of the Chapter […]
Your employer just filed for bankruptcy? Now what happens? You have been assured that your job is safe, but what will happen to your health and pension benefits? These are all substantial issues that can dramatically change a family’s financial security, and significantly impact plans for retirement. As more and more businesses approach and enter […]
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