HALLOWEEN 2018: A Word on Zombies, The Walking Dead and Death Spirals

By: Laura Day DelCotto Stanley Druckenmiller has been widely quoted recently for his predictions at the NYC Grant’s Investment Conference of looming insolvencies and bankruptcies to be filed by any number of zombie companies: “Seriously, does anyone know why Sears is still in business?”   He is right, the zombies have

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Chapter 11 Bankruptcy: An Option for Individuals

By: Laura Day DelCotto The vast majority of Chapter 11 bankruptcy filings are by businesses:  LLCs, closely held corporations, and large public company filings.  We read about them almost daily in the news.  This is how we have come to mostly think about Chapter 11 in the US: a large

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Recoupment Defined

By: Dean Langdon Recoupment allows one party (Party A) to a contract to keep payments that are due to the other party (Party B) when Party B owes money to Party A at the same time. There must be an over-payment by one party, and the competing claims must arise

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Fiscal Distress in Kentucky Counties: What’s Next?

Laura Day DelCotto ©2017 The 2016 US Census Report was sourced in the recent Lexington Herald- Leader article, reporting that Kentucky has the distinction of containing about 30% of the Top 30 poorest counties in the United States.   This really shouldn’t come as any surprise to anyone who keeps up

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Legal Claims as Assets in Chapter 11

By: Dean Langdon It’s not unusual for a company in financial distress to be involved in some sort of litigation, with claims being asserted back and forth between one or more parties. One of the benefits of filing bankruptcy is the automatic stay, which stops prosecution of most legal actions

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Avoiding Debt During the Holidays

By: Stephanie Dewitt It’s sometimes hard to shake the feeling of giving at the holidays. After all, ‘tis better to give than receive, right? Here are some tips to consider implementing in order to avoid accruing debt during the holiday season: 1. Start saving now for next year Whether you

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LLC’s, Creditors and Authority to File Bankruptcy

Limited liability companies (LLC’s) are the entity of choice these days for small, medium and even huge (think General Motors) businesses.  Laws governing the operation of LLC’s vary from state to state, but tend to offer owners greater flexibility and control than for other entities. LLC’s can be managed by

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Equitable Subordination and Recharacterization

The doctrine of equitable subordination is based upon principles of equity, and allows a court to subordinate the claim of one creditor to the claims of other creditors. Section 510(c) of the Bankruptcy Code addresses equitable subordination of claims filed in bankruptcy cases. Subsection (c)(1) states “Notwithstanding subsections (a) and

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Chapter 12, bankruptcy, farmers, family farm, fisherman

Defining Family Farmer: Eligibility for Chapter 12 Bankruptcy

Defining Family Farmer: Eligibility for Chapter 12 Bankruptcy By: Jamie L. Harris, Esq. It may be surprising but not all farming operations may qualify as “family farmers” eligible to seek Chapter 12 bankruptcy relief. “Only a family farmer … with regular annual income may be a debtor under chapter 12″

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How Can I Stop a Garnishment?

A pending garnishment can be very stressful. After all, we are talking about your money and how you pay your bills, eat, and live. If a creditor sues you and obtains a judgment against you, then after entry of the judgment, the creditor may proceed to garnish your wages or

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