Chapter 7, Chapter 11, Chapter 13 … .
Being in control of high assets does not necessarily preclude the need for bankruptcy protection. If the sum of your debts matches the sum of your assets, then you may need to look into whether you qualify for Chapter 7, Chapter 13 or Chapter 11 bankruptcy.
When businesses file for bankruptcy, they may often be compelled to sell certain assets in order to pay off existing creditors. This kind of financial reorganization can help businesses to remain competitive and it can aid others in protecting their owners from additional liability. However, it is important for business owners to remain smart about which assets they ultimately opt to sell and which they strive to protect. Failure to be discerning in this reorganization process can have disastrous consequences.
When millions of travelers get settled into their airplane seats, they browse through SkyMall. This in-flight catalog offers airline passengers the chance to purchase a wide array of interesting and sometimes odd products. This catalog has had a presence in the seatbacks of millions of airline seats for decades. However, the ubiquitous retailer has recently experienced financial challenges. Last month, SkyMall’s parent company suspended SkyMall operations and filed for Chapter 11 bankruptcy.
Earlier this month, dozens of claims tied to the recent General Motors defective ignition switch recall scandal were consolidated and sent before a federal court for matters of pretrial discovery. General Motors hopes that the process will continue to progress in such a way that federal courts will honor certain terms of the company’s business bankruptcy so that the company will not be held liable for harm done to certain plaintiffs currently pursuing action against it.How can bankruptcy protections keep GM from liability for harm done in accidents tied to its defective ignition switches? When GM was restructured under business bankruptcy protections several years ago, a federal bankruptcy judge held that GM would be shielded from liability for harm caused by models manufactured before the company was restructured in bankruptcy.
Rapper DMX, whose real name is Earl Simmons, is apparently running pretty low on cash. Once among the top-selling hip-hop artists in history, the performer filed for Chapter 11 bankruptcy in July. He had apparently built up over a million in alimony debt, owing more than over $450,000 in mortgage debt on a New York property, and another $479,000 to unsecured creditors.
Recently, a bankruptcy filing by a Wisconsin bank holding company was held up by the New York Times’ DealBook blog as a model of prudent and, in fact, innovative management. Typically, when bank holding companies file for bankruptcy, it’s far too late to save the subsidiary banks. Holding companies generally don’t consider filing Chapter 11 until bank examiners and the Federal Deposit Insurance Corporation sweep in and take over their banks.
Rapper DMX, whose real name is Earl Simmons, filed for Chapter 11 bankruptcy in New York last week, just days after being arrested in South Carolina on alleged drunk driving and driving without a license. DMX is a resident of South Carolina, but it seems the Bankruptcy Court in Manhattan was the best option for the performer, who hopes to use Chapter 11 to resolve perhaps $10 million in personal and business debts.
One of the most exciting parts of visiting the Grand Canyon was opened to the public only five years ago. The Grand Canyon Skywalk, which opened in 2007, is a fantastic, U-shaped walkway that allows visitors to walk directly out over the chasm and look down through a clear glass bottom. It is owned and operated by Sa' Nyu Wa, Inc., a subsidiary corporation of the Hualapai Tribe.
Corporate restructuring professionals -- who provide non-legal services in corporate restructuring, turnaround management, and bankruptcy reorganization to mid- and large-size companies -- can be an amusing and optimistic bunch. A survey of about 100 restructuring professionals was just released, checking in on their sense of where the economy is headed for big corporations in the year ahead. Amusingly, they were also asked to choose a movie that reflected their outlook for the year.