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.
The American Bankruptcy Institute, a nonpartisan group that provides research and education on bankruptcy and insolvency, recently released statistics gathered from all U.S. bankruptcy courts, finding that the overall rate of bankruptcy dropped in 2013 by 13 percent over the previous year. Moreover, this is the fourth year in which that rate went down.
Earl Simmons, the rapper known as DMX, filed for Chapter 11 reorganization in July, but he’s not getting much relief -- and it’s not the first time. The performer tried filing for bankruptcy in 2009, but that case was dismissed by the bankruptcy court after it found DMX had “unreasonably delayed” the case to the detriment of his creditors.
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.
American Airlines' parent company AMR Corporation filed for Chapter 11 bankruptcy in late 2011 in the hopes of reorganizing its debts, ditching some obligations, and putting itself in a strong position for future profitability. Last year, US Airways Group, Inc., indicated it was interested in merging with American, which would have to be approved by the bankruptcy court.