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October 2015 Archives

Reality TV star facing bankruptcy fraud charges

For many businesses saddled with massive debts in Salem, a Chapter 11 bankruptcy may be their only hope of staying in business while escaping further action from being taken by their creditors. However, it should be remembered that simply filing for bankruptcy does not provide one with a clean slate. Indeed, bankruptcy is a process rather than an event, and those who seek the protection that it provides are also required to work with the court by being transparent in their business actions. A failure to do so could leave a business owner facing a situation even more dire than the one that lay before him or her prior to seeking bankruptcy protection.

Do you qualify as a small business debtor?

For those Salem companies that are looking to bankruptcy as their chance to discharge their debts and start again under a new corporate structure, then the challenge of dealing with creditors’ committees  and other parties lies ahead as they work their way through a traditional Chapter 11 bankruptcy. Yet what if you run a small business that doesn’t have a large amount of debt? While the amount you owe may be a struggle for you to come up with, it may not represent a sufficient enough amount to warrant forming a committee of creditors. In this case, you may be able to be treated as a “small business debtor.”

Debt relief after death

Those overwhelmed by bills in Salem long for the day when debt relief arrives. Many believe that day will only come when they die. According to the results of a national survey reported by CreditCards.com, 18 percent of Americans believe that they will die while still in debt. While they may view that as the end of their own financial struggles, the expenses linked to their estate still remain. It then falls to their estate executors to worry about settling their outstanding debts.

What are creditors’ committees?

If you are like most business owners struggling with debt, then your decision to file a Chapter 11 bankruptcy was likely driven by your desire to retain and reorganize your business in order to pay your creditors back over time. Yet the terms of your repayment are not yours alone to determine; you must also work with a creditors committee. It is important that you understand how a creditors committee is formed, and what role it will play in your bankruptcy case.

Understanding lien avoidance

The primary concern of most of the clients with whom we at the Law Office of Paul Petrillo assist in filing a Chapter 7 bankruptcy is what assets they are allowed to keep. In most cases, you are able to keep your home and most of your personal property. Yet what if a creditor has filed a lien against one of these assets? Simply filing for bankruptcy does not automatically invalidate the lien. Rather, you need to file a lean avoidance motion with the court.

Law Office of Paul Petrillo
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Nashua, NH 03062

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