A federal judge on Wednesday said he was leaning toward dismissing Rudolph W. Giulianis request for bankruptcy protection after months in which the former New York mayor ignored court filing deadlines and evaded questions about his finances.

Should the judge follow through and dismiss the case, it would allow creditors to pursue foreclosures, repossessions and lawsuits that have been on hold for over six months as Mr. Giuliani, who served as a personal lawyer for former President Donald J. Trump, sought the protection of bankruptcy law.

In his latest shift in legal strategy, Mr. Giuliani himself asked the court in a filing on Wednesday morning, just minutes before a scheduled hearing, to dismiss his bankruptcy petition, which he filed after being held liable for $148 million in damages for defaming two Georgia election workers.

Im leaning toward dismissal, frankly, because I am concerned that the past is prologue, Judge Sean H. Lane of the U.S. Bankruptcy Court in the Southern District of New York said at the hearing, adding that he believed Mr. Giulianis lack of transparency with the court would continue.

Mr. Giuliani filed for bankruptcy in December, after a federal jury awarded the damages to the election workers, Ruby Freeman and Shaye Moss.

His main goal in bankruptcy was to hold off paying them without having to post a bond while he appealed the judgment. But the bankruptcy court did not allow him to do this.

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Excerpt from:

Judge Suggests He Is Likely to Dismiss Giulianis Bankruptcy Case - The New York Times

Basic Fun, a Florida-based toy design and development company that since 2019 has owned the Tonka toy brand, has filed for Chapter 11 bankruptcy protection as part of a financial restructuring plan.

Per regulatory filings with the U.S. Bankruptcy Court for the District of Delaware, leaders of the Boca Raton-based company estimated Basic Fun's debt to be between $50 million and $100 million, with fewer than 50 creditors. Its assets, the filing said, are less than $50,000.

The company is seeking approval of $50 million in debtor-in-possession financing, a specific type of financing for companies going through bankruptcy. The financing would come from affiliates of Great Rock Capital, plus a $15 million letter of credit from RBC and Basic Fun's founders, Jay Foreman and John MacDonald, to keep the business afloat during the restructuring proceedings, according to a release from the company.

Basic Fun acquired Tonka from Hasbro in 2019. Hasbro had owned the Tonka brand since 1991. Other toy brands owned by Basic Fun include My Little Pony, Lite Brite, Lincoln Logs, Care Bears and Tinkertoy.

In a statement, Foreman, also the company's chief executive and majority shareholder, said a number of setbacks led to financial distress for the business.

"Since the demise of our industry's largest toy retailer, Toys 'R' Us in 2018, through the tumult of the trade wars with China in 2019, COVID in 2020 through 2021, the travails of the supply chain crisis in 2022, inventory overstocks in 2023 and a consumer slowdown in the early part of 2024, our industry and Basic Fun have been through a gauntlet of challenges," he said. "We intend to use the restructuring process to put those challenges in the rear-view mirror, enabling us to secure a successful future and position us for growth and value creation."

Toys 'R' Us has reopened as a smaller player under new ownership.

Operated and based in Mound, a Twin Cities suburb, Tonka originally began in 1946 as Mound Metalcraft. Founders Al Tesch, Avery Crounse and Lynn Baker created the business to make metal items like tie racks and gardening tools. In 1947, Mound Metalcraft began manufacturing metal toys based on a toy steam shovel designed by Streater Industries, a Minnesota company later known for its retail merchandising displays.

The company gradually switched to predominantly toy manufacturing, with six employees assembling just two models, a steam shovel and a crane. Mound Metalcraft became Tonka Toys Inc. in 1948, named after nearby Lake Minnetonka.

By 1968, the company moved headquarters from Mound to offices just west of Minneapolis. Between 1974 and 1975, the company reached $102 million in annual sales and had facilities in eight countries. The Mound plant employed more than 2,000 people.

In 1983, Tonka closed the Mound plant and moved all manufacturing to El Paso, Texas, and Juarez, Mexico.

Read more:

Toy company that owns Minnesota-made Tonka brand files for Chapter 11 bankruptcy protection - Star Tribune

Court proceedings in Rudy Giulianis bankruptcy case hit a boiling point Wednesday when lawyers for the creditors owed $148 million by the former New York City mayor floated the possibility of seeking jail time for his alleged bankruptcy crimes.

In New York federal court, Rachel Strickland, an attorney representing the two Georgia 2020 election workers who Giuliani defamed, pushed to have Giulianis Chapter 11 bankruptcy case thrown out, offering that Giuliani could receive a hall pass if the court did not do so, the Independent reported.

Strickland alleged Giuliani, the former attorney for Donald Trump, has used the proceedings to protect himself from the financial ramifications of the defamation case, and pointed to how he has time and again refused to follow requirements that he disclose his income and assets, according to Politico.

He regards this court as a pause button on his woes while he continues to live his life unbothered by creditors, Strickland added. If the case is dismissed, creditors will be able to hold Americas mayor accountable for the harms hes caused.

The assertion prompted Giuliani to interrupt on the call, characterize Stricklands statements as highly defamatory, and request a break, which U.S. Bankruptcy Judge Sean Lane declined to give.

Gary Fischoff, Giuliani's attorney, later clarified Giuliani would not be committing any bankruptcy crimes.

Lane indicated he was leaning toward dismissing the case, namely because of his concern Giuliani has used the matter to delay the payouts, per Politico.

I am concerned that the past is prologue, the judge said, adding he remains concerned the difficulties that weve encountered in this case in terms of transparency will continue and dog the case.

According to the Independent, Giuliani was initially seeking to convert the case from a Chapter 11 to a Chapter 7 to liquidate his assets.

But just before the hearing began, Giulianis legal team changed course and indicated it also supported dismissing the case. Fischoff said a dismissal would allow for the best chance for an appeals ruling in the defamation case.

Continued here:

Rudy Giulianis Bankruptcy Case Devolves Into Threats of Jail Time - The Daily Beast

Rudy Giuliani proposed to a judge he leave bankruptcy protection on Wednesday before a pivotal hearing where the former New York City mayor stands to potentially lose control of all of his assets, and he is already upset with how the proceedings are going.Related video above: Former Georgia election workers awarded $148M in civil suit against GiulianiHis two most significant creditors, Ruby Freeman and Shaye Moss, the Georgia election workers whom he defamed, asked the bankruptcy judge in recent days to toss Giuliani out of bankruptcy, so they can pursue his assets to begin to collect the $148 million he owes them.If the judge agrees with their plan which Giuliani says in his new court filing he is now on board with Freeman and Moss are entitled to take both of his homes immediately, in Florida and New York, their bankruptcy attorney Rachel Strickland told CNN.The next steps are being discussed at length in a court hearing that is ongoing in federal bankruptcy court in White Plains, New York.Giulianis attorney Gary Fischoff told the judge at the start of the hearing on Wednesday his team believed the purpose of Giuliani for being in bankruptcy has run its course.Fischoff added the assets Giuliani has that Freeman and Moss may be able to claim immediately are jewelry and his two apartments.Giuliani has piped up a few times in the hearing already after calling in via his iPhone, about 10 minutes late.He is currently trying to tell the judge he believes the creditors committee has been defaming him, but the judge, Sean Lane, asked him not to interrupt. If the judge does not agree to dismiss the bankruptcy case, Giuliani has asked the judge to change the classification of his bankruptcy, from Chapter 11 to Chapter 7, which would limit creditors ability to pursue his incoming income.Other creditors have been arguing to the judge to remove all of Giulianis accounts from his control and place them under the control of a Chapter 11 trustee. That committee does not wish for Giuliani to leave bankruptcy.This is slick maneuvering, Daniel Gielchinsky, a bankruptcy expert who isnt involved in the case but following it closely, said in response to Giulianis 11th-hour move.Giuliani has repeatedly said he plans to appeal the jury verdict Freeman and Moss won against him late last year, but cant while he is in Chapter 11 proceedings.Bernie Kerik, a close friend of Giulianis, told CNN on Wednesday morning that his spirits are great.But hes frustrated with the system, Kerik added. Hes really frustrated by frivolous , such as his many ongoing civil and criminal court proceedings.The two men had spoken Tuesday night, Kerik said, but hadnt discussed Giulianis bankruptcy situation.

Rudy Giuliani proposed to a judge he leave bankruptcy protection on Wednesday before a pivotal hearing where the former New York City mayor stands to potentially lose control of all of his assets, and he is already upset with how the proceedings are going.

Related video above: Former Georgia election workers awarded $148M in civil suit against Giuliani

His two most significant creditors, Ruby Freeman and Shaye Moss, the Georgia election workers whom he defamed, asked the bankruptcy judge in recent days to toss Giuliani out of bankruptcy, so they can pursue his assets to begin to collect the $148 million he owes them.

If the judge agrees with their plan which Giuliani says in his new court filing he is now on board with Freeman and Moss are entitled to take both of his homes immediately, in Florida and New York, their bankruptcy attorney Rachel Strickland told CNN.

The next steps are being discussed at length in a court hearing that is ongoing in federal bankruptcy court in White Plains, New York.

Giulianis attorney Gary Fischoff told the judge at the start of the hearing on Wednesday his team believed the purpose of Giuliani for being in bankruptcy has run its course.

Fischoff added the assets Giuliani has that Freeman and Moss may be able to claim immediately are jewelry and his two apartments.

Giuliani has piped up a few times in the hearing already after calling in via his iPhone, about 10 minutes late.

He is currently trying to tell the judge he believes the creditors committee has been defaming him, but the judge, Sean Lane, asked him not to interrupt.

If the judge does not agree to dismiss the bankruptcy case, Giuliani has asked the judge to change the classification of his bankruptcy, from Chapter 11 to Chapter 7, which would limit creditors ability to pursue his incoming income.

Other creditors have been arguing to the judge to remove all of Giulianis accounts from his control and place them under the control of a Chapter 11 trustee. That committee does not wish for Giuliani to leave bankruptcy.

This is slick maneuvering, Daniel Gielchinsky, a bankruptcy expert who isnt involved in the case but following it closely, said in response to Giulianis 11th-hour move.

Giuliani has repeatedly said he plans to appeal the jury verdict Freeman and Moss won against him late last year, but cant while he is in Chapter 11 proceedings.

Bernie Kerik, a close friend of Giulianis, told CNN on Wednesday morning that his spirits are great.

But hes frustrated with the system, Kerik added. Hes really frustrated by frivolous [expletive], such as his many ongoing civil and criminal court proceedings.

The two men had spoken Tuesday night, Kerik said, but hadnt discussed Giulianis bankruptcy situation.

More here:

Giuliani proposes leaving bankruptcy as creditors ask for a trustee to control his assets - WBAL TV Baltimore

Former Trump advisor and New York City mayor, Rudy Giuliani, is facing yet another financial and legal hurdle as a New York bankruptcy judge appears ready to toss out his 2021 bankruptcy, potentially allowing for a full liquidation.

Im leaning toward dismissal, frankly, because I am concerned that the past is prologue, U.S. Bankruptcy Judge Sean Lane said, per Politico. "The difficulties that weve encountered in this case in terms of transparency will continue and dog the case.

Giulianis bankruptcy, stemming from several costly settlements, still left the former NYC mayor with over $40,000 in monthly spending cash, a figure which he reportedly blew past since the December 2021 filing.

Giuliani has lost a number of gigs recently, including a spot on a conservative radio show and his license to practice law in New York, due to his promotion of election misinformation and illegal schemes to overturn the 2020 election.

If tossed, Giuliani would have to liquidate his assets to pay the staggering sums he owes to two Georgia election workers who he repeatedly defamed, leading to violent threats against the pair, among numerous other debtors.

He regards this court as a pause button on his woes while he continues to live his life unbothered by creditors, an attorney for the Georgia election workers said in court. If the case is dismissed, creditors will be able to hold Americas mayor accountable for the harms hes caused. Its time for Mr. Giuliani to go back to the real world.

The financial issues add to his mounting legal troubles, as he doubles down on election denialism amidst an Arizona prosecution of his false elector role.

Judge Lane reportedly plans to have a ruling in by Friday.

Link:

"Back to the real world": Court set to toss Giuliani bankruptcy - Salon

Fisker Inc. co-founders Henrik Fisker and his wife, Geeta Gupta-Fisker, are lowering their salaries to $1 in order to keep their failed EV startups bankruptcy proceedings funded, as lawyers work to complete a sale of its remaining inventory.

Fisker Inc.s restructuring officer, John DiDonato, said in a Tuesday morning filing that the couple, who co-founded the startup in 2016, made the decision July 8 just five days after he was grilled about the issue by Linda Richenderfer, a lawyer for the office of the U.S. Trustee.

In that July 3 hearing, Richenderfer asked DiDonato whether the Fiskers were still on the payroll. Richenderfer wanted to be sure that every other option had been exhausted given that the lawyers for the company were asking the court to approve an expedited sale of Fiskers EVs (at least the ones designed for North America) in order to fund the rest of the Chapter 11 case. Those funds are meant to cover legal proceedings and the wind-down of the company.

DiDonato stumbled trying to recall what Henrik and Geeta were currently being paid but told Richenderfer that their salaries were undertaking a modification and possibly some deferrals.

Its still not clear what the couple were being paid every other week as the company slid into bankruptcy. The company said in a regulatory filing last year that it paid them a minimum-wage salary in 2022, which at the time in California was $62,400. But they were each additionally paid cash bonuses of $710,000.

In addition to the salary reductions, DiDonato said in Tuesdays filing that Fisker will defer certain severance payments, certain employee healthcare benefits, and vehicle sale incentive bonuses that have not yet been paid. Most of Fiskers workforce, which was around 1,300 in September 2023, has been whittled down to about 130 people.

All of this comes as the company is pushing to sell more than 3,000 of its remaining Ocean SUVs to American Lease, a New York-area company that mainly serves ride-hail drivers, in a deal that is supposed to net around $46.25 million. And while Fisker is in agreement to make that sale to American Lease, another potential buyer has approached the startup but that unknown party is under NDA and its not been made clear what, exactly, they might want and what theyd be willing to pay.

A lawyer for Fisker said at the July 3 hearing that the plan was to parcel out about 200 Oceans to American Lease at a time, due, in part, to a problem with the EVs water pump that can cause the high-voltage battery to lose power. Fisker needs to fix that problem on every car before it can be sold because the part is now under an official recall with the National Highway Traffic Safety Administration.

With the cost-saving measures DiDonato laid out, along with additional cash coming in from prior vehicle auctions and interest on bank accounts, Fisker now thinks it can fund the case over the next few weeks. A final decision on the approval of the sale to American Lease is now not expected until July 16.

I think holding the hearing on that date allows a little more breathing room for the parties and potential other events, Brian Resnick of Davis Polk, who represents Fisker in the bankruptcy case, said in a hearing Tuesday morning. That includes the potential new buyer for Fiskers assets, Resnick said, but he added: Were certainly not taking our eye off the ball on the American Lease transaction.

In the interim, the fight between Fiskers lone secured creditor Heights Capital Management, an affiliate of financial services company Susquehanna International Group and its many unsecured lenders continues. A committee of unsecured creditors was finally formed last week, and their legal representation got its first chance to speak at Tuesdays hearing.

That lawyer, Doug Mannal of Morrison Foerster LLP, didnt waste the moment. He spent about 10 minutes of the roughly 30-minute hearing building on claims, frustrations and allegations made by another lawyer who spoke on behalf of an unsecured creditor in the first Chapter 11 hearing on June 21. Mannals speech aimed to deliver the court a message: The committee of unsecured creditors is uncomfortable with the way that Heights wound up first in line for all of Fiskers assets.

Heights extended around $500 million worth of loans to Fisker in 2023. That debt was not secured by any collateral, but instead could be converted into Fisker stock. When Fisker was late in filing its third-quarter financial results in late 2023, that breached one of the covenants of the deal with Heights.

Somehow and its still unclear exactly what happened here Fiskers way of making good with Heights was to pledge all of its assets as collateral for the remaining debt. What would be a relatively benign event in most other situations has had a dramatic impact on Fisker, Mannal said in the hearing. He also noted that the covenant breach allowed Heights to convert and sell Fisker stock at a juicy premium, essentially turning $1 into $1.60 by flipping it on the open market.

Mannal accused Heights of using Fisker as a money tree and claimed theyve already made back far more than the value of the original loans. He therefore questioned why Heights is still claiming to be owed more than $180 million debt that remains collateralized by all of Fiskers assets when the unsecured creditors are collectively owed around $1 billion.

Scott Greissman, a partner at White & Case LLP who represents Heights, said the firm has at all times acted within the four corners of a series of contracts with Fisker. He reminded the court that Fisker was a publicly traded company with a board of directors and fine counsel, all of whom oversaw the negotiations of the original loans and the agreement to repair the breach.

Your Honor, similar to the first day hearing, different law firm, same allegations, perhaps a little more dramatic, we dont think its appropriate necessarily at all to respond to any of these allegations that Mr. Mannal has stated on the record almost in the form of testimony, Greissman said. We are very concerned that the [unsecured creditors] committees approach to the case will destroy value rather than enhance it.

(One way the committee of unsecured creditors is already trying to enhance the value of whats left at Fisker: It was the one that found the new potential buyer.)

Whichever way the next few weeks go, Greissman stressed the point that, though Fisker entered a Chapter 11 proceeding, Heights sees this as a liquidation and little else. Every dollar expended is unrecoverable, he said. Even an approved sale wont necessarily sustain a Chapter 11 case, especially a highly litigious one.

Originally posted here:

Henrik Fisker drops salary to $1 to keep Fisker Inc. bankruptcy case alive - TechCrunch

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Rudy Giuliani warned by judge at chaotic bankruptcy hearing - The Daily News Online

Redbox and its parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy in a Delaware court June 29 and claimed nearly $1 billion in debt. Its a reorganization, not a dissolution, so the red refrigerator-sized kiosks often found outside drug stores and in-grocery vestibules are not (yet) going the way of the VHS. However, its already bad news for physical media.

The obituary for physical movie rental has long been a work in progress, dating back to Blockbuster Video filing for bankruptcy protection in 2010. Netflix, then primarily a DVD-by-mail service, destroyed the brick-and-mortar business. Within a few years, it was clear that streaming was Netflixs future although it didnt mail its last DVD until September 2023.

This year, we saw Best Buy stop carrying DVDs and Blu-rays while Disney pulled the plug on its own physical home-entertainment business, outsourcing production to Sony. Walmart, Target, and Barnes & Noble still carry a torch for physical media, but DVDs increasingly populate their bargain bins. With Prime Video, Amazon has a homegrown incentive to move toward digital delivery. Next-gen video-game consoles wont even have disc slots, which means a lot fewer homes will have DVD players.

If retailers cant be bothered, why should studios continue making DVDs? Rather than see it as a death knell, some wonder if this shift in the market opens a door for physical media enthusiasts.

Im really hoping they see it as an opportunity. If Disney can outsource to Sony, why couldnt the studios outsource to places like Criterion or Kino Lorber? said Leah Aldridge, a professor of Film and Media Studies in Chapmans Dodge College told IndieWire. Im banking on an entrepreneur to come through and say, Let us do it. Well take it on. Well do it cheaper than Sony.'

Joe Rubin, co-founder anddirector of acquisitions at cult DVD distributor Vinegar Syndrome, said the upheaval has some advantages. Studios now seem more willing to license their titles for collectors editions; in the past the answer would be a flat no or an impractical yes the kind that comes with astronomical expectations.

The reduction in interest in physical media at studios has been something of a blessing, because its made those titles available, Rubin said.

That doesnt mean were in for a boon of opportunity for indie DVD distributors. Theres a growing gap between the casual movie fans who want their own copy of Barbie and the collectors who want the 4K edition of the 1986 Chuck Norris thriller Invasion U.S.A.

I dont think that the home video or physical media market is expanding, Rubin said. Its hit its peak. Its plateaued. If anything, its going to start contracting. And this may not be a true sign of death for it, but its definitely not getting any bigger. Were not seeing growth.

Vinegar Syndrome handles home video and DVD sales for smaller distributors. It has about 30 independent partners, including the smallest niche distributors and more mid-sized players like Utopia and IFC Films. Rubin said many other niche DVD distributors have cropped up to fill the void left by the major studios, but none of them operate on a scale that could handle outsourcing for an entire studio.

I dont know that we or any of the other companies of our size are really set up for it, he said. The logistics of working with a major studio is always going to be more difficult than working with an independent filmmaker or a smaller distribution company just because of how their own businesses are structured more departments to go through, more clearances, more strictness.

Its been a long time since DVDs were a key revenue stream for studios, but DVD production is very cheap. If a movie can justify the cost, studios will still make the effort. Aldridge said some international markets havent fully matured with streaming and still need discs, as do some pockets of the U.S.

If places like Redbox go out of business entirely, those consumers could be completely out of luck for new movies outside of first-run theaters (and some regions dont even have that). With more forced to pay monthly streamer subscription fees, score that as another reason for studios to lose interest in physical media. Places like Vinegar Syndrome have anticipated some of these changes and moved more of their operations to their website and DTC offerings rather than rely on third-party sellers.

Maybe theres a possibility that DVDs could become the new vinyl another outdated format, which turned its impracticality into cachet. However, LPs have an advantage that DVDs do not: Record stores exist across the country; specialty video stores are few and far between. As much as Rubin said hed like to champion more obscure titles in need of discovery and preservation, the DVD releases most likely to see a return have a built-in audience.

Redbox could have been a solution, but it still required you to leave your home in an age when everything is available at your fingertips. According to Rubin, Redbox courted Vinegar Syndrome to supply the kiosks with more niche offerings. But Redbox required scale thousands of discs sans packaging to pack their kiosks. The partnership never came to pass, and the movie selection at most Redbox locations remained limited to more recent, forgettable studio movies you probably wouldnt watch if they were available on a streamer for free.

Shortly after the now-ousted Redbox CEO Bill Rouhana acquired Redbox in May 2022, he told IndieWire that there was absolutely nothing in [the kiosks] today that youd want to watch. Now Redbox feels as antiquated as the Blockbuster video stores it was meant to replace.

See more here:

Why the Redbox Bankruptcy Is Very Bad News for DVD and Blu-ray Collectors - IndieWire

Former New York City Mayor Rudy Giuliani faced a threat of jail during a chaotic bankruptcy hearing on Wednesday (July 10). Judge Sean Lane, who presided over the hearing, warned Giuliani that his microphone could be cut off due to repeated interjections.

The judge also indicated that he was leaning towards dismissing Giuliani's bankruptcy case, with a final ruling expected later this week.

Giuliani's bankruptcy was triggered by a $148 million verdict against him after he falsely accused Georgia election workers Shaye Moss and Ruby Freeman of 2020 election fraud. During the hearing, Giuliani contested his creditors' allegations of bankruptcy crimes.

Highly defamatory, your honor! Giuliani exclaimed.

The former mayor's creditors, including the electronic voting machine company Dominion Voting Systems and former employee Noelle Dunphy, accuse him of using bankruptcy as a delay tactic while hiding assets and spending extravagantly. They propose appointing a bankruptcy trustee to take control of Giuliani's assets and monitor his finances.

Giuliani's team agreed with the election workers' proposal to dismiss the bankruptcy less than an hour before the hearing. However, the official creditors committee wants to remain in the bankruptcy system, fearing they would otherwise be left with nothing. The case continues to unfold, with the final ruling expected on Friday.

Read the rest here:

Rudy Giuliani Threatened With Jail By Opposing Lawyer At Bankruptcy Hearing - KFI AM 640

Hornblower Group emerged from its bankruptcy last week approximately five months after filing a prepackaged deal designed to restructure the company. As part of the deal that was presented to the bankruptcy court, Hornblower narrowed its focus of operations and received a new majority owner.

The slimmed-down Hornblower operates its brand City Cruises which conducts sightseeing cruises in more than 20 U.S., Canada, and UK destinations. They also provide transportation to landmarks such as the Statue of Liberty, Alcatraz Islands, and Niagara Falls. The other portion of the water bourn operation is ferries and transport. The company says it services over 20 million people each year in more than 100 countries, including 50 U.S. cities

Filing for bankruptcy in February 2024, Hornblower cited its heavy debt load and the failure of its overnight cruise lines to recover from the pandemic. American Queen Voyages separately filed for bankruptcy and was disbanded. Its paddleboat river cruise vessels were sold to American Cruise Lines which has scrapped several of the ships. The companys two coastal cruise ships were sold to their prior owner who is promising to restart the cruise operations in 2024. A charter for an exploration cruise ship from Sunstone was canceled and this has been re-leased to a new startup cruise line in Spain.

Today marks a new beginning for Hornblower, said Kevin Rabbitt, Hornblower's Chief Executive Officer, in the July 3 statement announcing the completion of the restructuring. We have an expert team with a long history of delivering safe, world-class experiences. We have the continued support of our government agency and business partners, and we have new owners who support our strategic priorities.

Management emphasizes that they have a focused portfolio and new financial flexibility and liquidity. As a result of the restructuring process, Hornblower reduced its total debt by approximately $720 millionor more than 70 percent.

Majority ownership of Hornblower is now held by funds managed by Strategic Value Partners, a private investment firm with more than $18 billion under management. Crestview Partners, a private equity firm that acquired Hornblower in 2018, retained a minority position and took sole ownership of the tour company Journey Beyond based in Australia.

View original post here:

Hornblower Emerges from Bankruptcy Focusing on Sightseeing and Ferries - The Maritime Executive

Baltimore Archbishop William Lori struck a unified tone with the chair of the committee representing sex abuse victims in the Catholic Churchs bankruptcy case at a news conference Monday, as both men acknowledged the number of survivors who filed claims is not yet known.

Lori and Paul Jan Zdunek, chair of the creditors committee of survivors, told reporters that they shared the goal of promoting an efficient bankruptcy process that ends with fair compensation for survivors, a detailed set of protocols to prevent future child abuse and an ability for the church to continue its mission.

It is shared the goal of creating an environment rooted in mutual trust that permits us to work together constructively, and hopefully quickly, toward an agreed-upon plan, Lori said. Todays news conference is also about a public declaration of our intention to work together on behalf of victim-survivors.

The public show of unity comes more than a month after the deadline for survivors to submit sex abuse claims passed with hundreds filing in the case, and with the archdiocese and survivors committee having jointly asked a judge to begin a lengthy mediation process that they hope will end in a settlement.

The archdiocese declared bankruptcy Sept. 29, two days before a new Maryland law eliminating time limits for child sex abuse lawsuits took effect. The church anticipated hundreds of lawsuits to be brought, following the release of a state attorney generals report finding that 156 clergy and other church employees tormented more than 600 children and young adults, dating to the 1940s.

After the May 31 deadline for survivors to file in the bankruptcy case passed, Zdunek said there were at least 700 claims filed, but it would take time to identify the final number. He said Monday that the overall number of survivor claims wont be known until mediation begins and the sides agree on a figure.

We dont want to release the number of actual survivors claims until we all feel we have accurately identified the correct number, Zdunek said. This is more complicated than it may seem because some duplicate and vague claims were filed.

Lori emphasized the people behind the claims.

Whatever the number that is finally agreed upon, I think one of the things to keep in mind is its not just a number, Lori said. It represents so many people who have been harmed. It represents so many people that have experienced really terrible things in their lives. Stories of abuse and misuse of power. Stories of how the most innocent have been harmed.

The news conference also comes amid continued tension between the archdioceses insurers and the church and survivors committee. The archdioceses lawsuit against its insurers for alleged breach of contract is pending, with several insurance companies asking for that complaint to be handled in the U.S. District Court rather than the federal bankruptcy court.

Insurance companies also objected to the joint request by the archdiocese and the committee for mediation. Philip D. Anker, an insurance company attorney, said during a status conference in the case on July 1 that some insurers had shared a framework for a mediation listing seven or eight points.

U.S. Bankruptcy Judge Michelle M. Harner postponed a hearing scheduled for Monday to allow the sides more time to reach an agreement on the scope of mediation. If that isnt resolved by July 22, disagreement over mediation will be addressed at a hearing that morning in front of Harner.

With their joint appearance Monday, Zdunek and Lori reaffirmed their commitment to work together, despite other survivor advocates having disparaged the archdiocese.

While there are others who we are both thankful for and indebted to who have helped shape the child protection laws and pushed for the creation and release of the Attorney Generals report last year, the Archbishop and the Creditors Committee and our representative counsel are the only engaged and informed parties who are discussing all of the claims in an official capacity sanctioned by the court, Zdunek said.

David Lorenz, Maryland director of Survivors of those Abuse by Priests, or SNAP, said in a statement that Mondays news conference came as a surprise to many survivors and the survivor organization.

He pointed out the Catholic Churchs role in lobbying against the creation of the Child Victims Act, which lifted time limits for sex abuse lawsuits, and fighting it in court once it took effect.

Working closely with the survivor community and having to routinely deal with the inaccuracies, the stonewalling, and the misleading statements coming from the diocese has given us a unique perspective on the workings of the diocese, Lorenz said. With no disrespect to Paul or the Creditors Committee, we believe that the diocese is the proverbial wolf in sheeps clothing.

Edwin Caldie, an attorney for the survivors committee, said in a statement that to strengthen anything requires tension.

In this case, the committee is the tension because our role is to push for more and we are going to do that, and our goal is to ensure that every survivor is heard and acknowledged as fully and completely as humanly possible, Caldie said. Were happy that the archbishop appears to be welcoming this tension. Were hopeful that as we enter mediation, his actions will match his words.

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Baltimore archbishop, chair of abuse survivors committee strike unified tone on bankruptcy case - Baltimore Sun

The head of the Archdiocese of Baltimore and the chair of a committee that represents survivors of sexual abuse vowed on Monday to work together to reach a fair and equitable settlement in the churchs bankruptcy case.

Archbishop William Lori and Paul Jan Zdunek, chair of the Official Committee of Unsecured Creditors, held a joint news conference at the offices of Brown, Goldstein & Levy in Baltimore to provide an update on whats happening in the case. They said theyre looking to move into mediation to reach agreements on the number of sexual abuse claims filed in the case, compensation for survivors, and policies and protocols to further protect children.

We share a goal of creating an environment, one thats rooted in mutual trust, and one that will enable us to work together constructively, and hopefully quickly, to come to an agreed-upon plan, Lori said. Todays news conference is a public declaration of our intention to work together on behalf of victim-survivors.

Lori said he continues to offer his heartfelt apologies to survivors and stated that the scourge of sexual abuse in the Catholic Church has had a lasting effect on the lives of many people.

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Theyve jointly asked that Robert J. Faris, the chief bankruptcy judge of the District of Hawaii, and Brian Nash, an attorney in Venice, Florida, be appointed as co-mediators in the case. But insurance companies have objected to that request, describing it in court documents as an attempt to negotiate a plan in secret without the participation of the insurers and without public scrutiny.

U.S. Bankruptcy Judge Michelle M. Harner has scheduled a hearing in Baltimore for July 22.

Faris served as mediator in the bankruptcy case for the Archdiocese of Agaa. Meanwhile, Nash has taken part in the mediation of more than 2,000 cases involving claims of medical negligence and sexual abuse, according to court documents.

Zdunek said its hard to tell when survivors will see compensation. Mediation, he said, has taken from 12 to 18 months in other cases.

No amount of anger or hatred is going to reverse or erase the horrible events of the past, Zdunek said.

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And as we move forward, were using data and reason to guide our discussions and decisions and drive towards our shared goals of providing survivors with meaningful compensation, agreement on policies and protocols that will stop this from ever happening again to another child as well as allowing the Catholic Church to continue its mission of serving those who are most in need, he continued.

Bishop Adam Parker of the Archdiocese of Baltimore also attended the news conference.

In a statement, David Lorenz, who leads the Maryland chapter of Survivors Network of those Abused by Priests, or SNAP, said the news conference came as a surprise.

Lorenz said members of the network have seen firsthand how the archdiocese has obfuscated facts and misled the public in its pronouncements.

Speaking in general terms, Zdunek said it is better to build bridges than barriers.

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He said the focus of the creditors committee, whose members are appointed by the U.S. trustee, is to make sure that every survivor receives the most fair and just outcome to the unspeakably horrible events that happened to them in the past.

The Archdiocese of Baltimore filed for bankruptcy in 2023, shortly before a new law took effect that eliminated the statute of limitations for survivors of sexual abuse to file lawsuits and that allowed more people to sue the institutions that enabled their victimization was set to take effect in Maryland.

The Maryland Supreme Court has since agreed to take up the constitutionality of the Child Victims Act of 2023. Oral argument is set for Sept. 10.

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Mediation eyed as next step in Archdiocese of Baltimore bankruptcy case - The Baltimore Banner

About Bankruptcy

Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.

All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code.

There are different types of bankruptcies, which are usually referred to by their chapter in the U.S. Bankruptcy Code.

Bankruptcy Basics provides detailed information about filing.

Seeking the advice of a qualified lawyer is strongly recommended because bankruptcy has long-term financial and legal consequences. Individuals can file bankruptcy without a lawyer, which is called filing pro se. Learn more.

Use the forms that are numbered in the 100 series to file bankruptcy for individuals or married couples. Use the forms that are numbered in the 200 series if you are preparing a bankruptcy on behalf of a nonindividual, such as a corporation, partnership, or limited liability company (LLC). Sole proprietors must use the forms that are numbered in the 100 series.

If you need help finding a bankruptcy lawyer, the resources below may help. If you are unable to afford an attorney, you may qualify for free legal services.

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Bankruptcy | United States Courts

What Is Bankruptcy?

Bankruptcy is a court proceeding in which a judge and court trustee examine the assets and liabilities of individuals, partnerships, and businesses whose debts have become so overwhelming they dont believe they can pay them.

The court decides whether to discharge the debts. A discharge means those who owe are no longer legally required to pay them. The court also could dismiss the case if it believes the person or business has enough assets to pay their bills.

Bankruptcy laws were written to give people an opportunity to start over when their finances collapsed. Whether the collapse is a product of bad decisions or bad luck, lawmakers could see that a second chance is a vital fallback in a capitalist economy.

The good news for anyone hesitant about this option is that nearly everyone who files for bankruptcy gets that second chance. The American Bankruptcy Institute says that 95.3% of people who file Chapter 7 bankruptcy are successful.

Filing for bankruptcy is a big decision, said Ashley Morgan of Ashley F. Morgan Law. PC in Herndon, Va. Some people say it should be your last option; I believe it should be something you learn about early, but not your first option.

Bankruptcy can vary so much from situation to situation that you should know if it is a decent option for you before making any significant decision.

Most individuals and businesses filing for bankruptcy have far more debts than money to cover them and dont see that changing anytime soon.

On the other hand, bankruptcy can often be used as a financial planning tool when you do have enough money to repay debts but need to restructure the terms. This is often in cases when people need to repay mortgage arrears or taxes in a structured repayment plan.

What is surprising is that individuals not businesses are the ones most often filing for bankruptcy. They owe money for a mortgage, credit card debt, auto loan or student loan perhaps all four! and dont have the income to pay it.

There were 413,616 bankruptcy cases filed in 2021. Only 14,347 were filed by businesses.

The other surprise is that most of the people filing bankruptcy were not wealthy. Median incomes for those filing Chapter 7 and Chapter 13 bankruptcies range from the low- $30,000s-to-low-$40,000s.

Part of understanding bankruptcy is knowing that, while it is a chance to start over, it definitely affects your credit and future ability to use money. It may prevent or delay foreclosure on a home and repossession of a car, and it can also stop wage garnishment and other legal action creditors use to collect debts.

However, in the end, there is a price to pay, and youll pay it for 7-10 years. One cost is finding low-interest loans.

(A bankruptcy ) makes it much more difficult to obtain lending at a reasonable rate of interest, said David Reischer, bankruptcy attorney and CEO of LegalAdvice.com. Lenders will typically offer low credit score subprime borrowers financing at interest rates that are double the national average for borrowers without a bankruptcy on their credit report.

There were 413,616 bankruptcy filings in the calendar year 2021. According to statistics released by the Administrative Office of the U.S. Courts, that is a decrease of 24% over 2020. Business bankruptcy filings fell 33.7% from 21,655 to 14,347 during the same period.

Filings decreased across the board. Chapter 7, once again the most popular form of bankruptcy (69%) fell to 288,327 from 378,953 in 2020.

Chapter 13 counted 120,002 filings (29%), down from 156,377 the previous year. And Chapter 11 filings dropped from 8,333 to 4,836 in 2020.

The decrease in filings in 2021 does not surprise me, said Shawn Plummer, CEO of The Annuity Expert. Since the pandemic we've seen student loan moratoriums, pauses on rent, higher unemployment benefits (including direct checks to citizens), and other financial aid measures that were as unprecedented as a global pandemic.

Coupled with rock bottom interest rates, people have just had access to more funding than in the past. We may see bankruptcy rates rise this year, with the pressure inflation is putting on consumers.

Ed Flynn, of the American Bankruptcy Institute (ABI), found that 94.9% of Chapter 7 filings in his 2020 study were successfully discharged. Only 21,677 cases of the 442,145 cases completed in 2020 were dismissed.

Individuals who used Chapter 13 bankruptcy, known as wage earners bankruptcy, didnt have nearly as much success. In fact, of the 246,369 Chapter 13 cases completed in 2020, only 43.2% (106,476) were successfully discharged. The majority of cases 139,893 were dismissed and thus unsuccessful.

Like the economy, filings in the U.S. rise and fall as evidenced in the statistics on bankruptcy. In fact, they are like dance partners; where one goes, the other usually follows.

Bankruptcy peaked with just more than two million filings in 2005. That is the same year the Bankruptcy Abuse Prevention and Consumer Protection Act was passed. That law was meant to stem the tide of consumers and businesses too eager to simply walk away from their debts.

The number of filings dropped 70% in 2006, but then the Great Recession brought the economy to its knees and bankruptcy filings spiked to 1.6 million in 2010. They retreated again as the economy improved. For various reasons, bankruptcies in the early pandemic and again in 2021 decreased to numbers not seen since the 1980s.

When asking yourself Should I file for bankruptcy? think hard about whether you could realistically pay off your debts in less than five years. If the answer is no, it might be time to declare bankruptcy.

The thinking behind this is that the bankruptcy code was set up to give people a second chance, not to punish them forever. If some combination of bad luck and bad choices has devastated you financially and you dont see that changing in the next five years bankruptcy could be your best way out.

Even if you dont qualify for bankruptcy, there is still hope for debt relief. Possible alternatives include a debt management program, a debt consolidation loan or debt settlement. Each one of those choices typically require 3-5 years to reach a resolution, and none of them guarantees all your debts will be settled when you finish.

The decision shouldnt come down to how long Chapter 7 bankruptcy takes the process itself is only 4-6 months. The thing you have to remember is that bankruptcy carries significant long-term penalties. It is stuck on your credit report for 7-10 years, which can make getting loans in the future very difficult.

The flip side of that is there is a great mental and emotional lift when all your debts are eliminated, and youre given a fresh start.

Sometimes waiting to declare bankruptcy can (help) a person or business manage their cash-flow in the short term which provides breathing room to survive over the medium or longer term without declaring bankruptcy, said Reischer.

A person or business should consider alternatives to bankruptcy such as looking for short term loans because declaring bankruptcy has significant and long-ranging effects. Sometimes it can be of benefit to wait until there really is no other option before actually declaring bankruptcy.

If youre filing for bankruptcy, you probably have tried many other options to avoid it, taking great effort to step out of what feels like financial quicksand. Youre likely as exhausted as your attempts and now recognize bankruptcy as a last resort.

Take heart. Youre not alone. Bankruptcy sometimes stems from unavoidable circumstances, or as a consequence of decisions that might not be in ones total control.

The millions of people who lost their jobs or businesses because of the coronavirus, have some hope because of bankruptcy. They still had bills to pay, and in many cases, no way to handle them. Thats what bankruptcy was meant to address. Its not a bailout. It was created to give people a chance to get back on their feet financially and restore their peace of mind.

If your bills have grown to levels your income simply cant handle, having your debts discharged through bankruptcy is a safe, legal and practical choice.

You want to make sure you pick the right time to file, said Morgan. When you are facing something like a foreclosure or a garnishment, bankruptcy tends to be one of the only options to stop those types of collection activities. So, sometimes your hand is forced about when to file.

Alternatively, if you are not at one of those extremes, it is important to review your situation. If you are in a situation where you are living on credit because your pay is not enough to make ends meet, it may not be the right time to fileMost people won't have access to more than a small credit card or two for a while after bankruptcy.

Youve decided to file for bankruptcy after exploring other options. You see filing for bankruptcy as the practical lifeline it can be if handled correctly.

Its as important to know what not to do while filing bankruptcy as it is knowing the proper steps to have a successful bankruptcy filing.

Filing for bankruptcy is a legal process that either reduces, restructures, or eliminates your debts. Whether you get that opportunity is up to the bankruptcy court. You can file for bankruptcy on your own, or you can find a bankruptcy lawyer, which most experts regard as the prudent avenue to pursue.

Bankruptcy costs include attorney fees and filing fees. If you file on your own, you will still be responsible for filing fees. If you cant afford to hire an attorney, you may have options for free legal services. If you need help finding an affordable bankruptcy lawyer or locating free legal services, check with the American Bar Association for resources and information.

Before you file, you must educate yourself on what happens when you file for bankruptcy. Its not simply a matter of telling a judge Im broke! and throwing yourself at the mercy of the court. There is a process a sometimes confusing, sometimes complicated process that individuals and businesses must follow.

The steps for filing bankruptcy are:

Learn More: Can You File Bankruptcy Online?

There are six types of bankruptcy Chapter 7, 9, 11, 12, 13 and 15 and. Chapter 7 and 13 are the most common types affecting individuals:

Chapter 7 bankruptcy is generally the best (and most commonly used) option for those with a low income and few assets. Chapter 7 bankruptcy is a chance to get a court judgment that releases you from responsibility for repaying unsecured debts.

You also could be permitted to keep key assets considered exempt property. Non-exempt property will be sold to repay part of your debt. Just know that property exemptions vary from state to state.

By the end of a successful Chapter 7 filing, the majority (or all) of your debts will be discharged, meaning you will no longer have to repay them. Some debts that wont be discharged in bankruptcy include alimony, child support, some types of unpaid taxes and some types of student loans.

Chapter 7 bankruptcy stays on your credit report for 10 years, but your score could improve over time as you rebuild your finances. While some individuals may not qualify due to high income, others simply cant afford Chapter 7 bankruptcy due to the fees and expenses.

Chapter 13 bankruptcies make up about 36% of non-business bankruptcy filings. A Chapter 13 bankruptcy involves repaying some of your debts in order to have the rest forgiven. This is an option for people who do not want to give up their property or do not qualify for Chapter 7 because their income is too high.

People can only file for bankruptcy under Chapter 13 if their debts do not exceed a certain amount. In 2020, an individuals unsecured debt could not exceed $394,725 and secured debts had to be less than $1.184 million. The specific cutoff is reevaluated periodically, so check with a lawyer or credit counselor for the most up-to-date figures.

Under Chapter 13, you must design a 3-5 year repayment plan for your creditors. Once you successfully complete the plan, the remaining debts are erased.

However, most people do not successfully finish their plans. When this happens, debtors may then choose to pursue a Chapter 7 bankruptcy. If they dont succeed, creditors can resume their attempts to collect the full balance owed.

Chapter 11 is often referred to as reorganization bankruptcy because it gives businesses a chance to stay open while they restructure the debts and assets to pay back creditors.

This is used primarily by large corporations like Hertz Rental Cars, JCPenney, Stein Mart and the XFL, all of whom filed Chapter 11 bankruptcy in 2020. This form can be used by any size business, including partnerships and in some rare cases, individuals. Though the business continues to operate during bankruptcy proceedings, most of the decisions are made with permission from the courts.

There were just 4,836 Chapter 11 filings in 2021.

Bankruptcy does not erase all financial responsibilities.

It does not discharge the following types of debts and obligations:

It also does not protect those who co-signed your debts. Your co-signer agreed to pay your loan if you didnt or couldnt pay. When you declare bankruptcy, your co-signer still may be legally obligated to pay all or part of your loan.

While bankruptcy can offer the best exit plan from crushing financial burdens, its not a one-size-fits-all remedy.

If youre uncomfortable with the credit score collateral damage of filing bankruptcy or some of the messier fallout of filing for bankruptcy, you may want to consider the alternatives:.

If these options arent possible, it may be worth it to look into low-cost bankruptcy options.

Before deciding, it would be wise to speak with legal counsel to determine your best option. To learn more about bankruptcy and other debt-relief options, seek advice from a nonprofit credit counselor or read the Federal Trade Commissions informational pages.

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Bankruptcy: What is it, How to File & Who Qualifies - Debt.org

If youre reading this, youre probably thinking about (or in the middle of) bankruptcy. The world may tell you this route is a fresh start . . . or a horrible ending. But whats the truth about bankruptcy?

In simple terms, bankruptcy is a legal process a person can go through to clear some of the debts theyre unable to pay.

If youre so overwhelmed by debt that bankruptcy feels like your only option, know these three things: 1) There is hopeand you will be okay. 2) There are other optionsand you should try every single one before jumping into bankruptcy. 3) Bankruptcy does not define you and will not be the end.

Keep these three things in mind as you read through the rest of this article and learn the truth about bankruptcy, including a breakdown on these specific topics:

What Is Bankruptcy?What Are the Types of Bankruptcy?How Does Bankruptcy Work?What Happens if You Declare Bankruptcy?What Are the Consequences of Declaring Bankruptcy?Should You Declare Bankruptcy?What Are Alternatives to Filing for Bankruptcy?

What Is Bankruptcy?

Bankruptcy is a court proceeding where you tell a judge you cant pay your debts. The judge and court trustee look through your assets and liabilities (aka what you own and what you owe) to decide whether to discharge (or cancel) some of your debts. If the court finds that youreally have no means to pay back your debt, youll go through the official process of declaring bankruptcy.

The term bankruptcy probably came from the Italian phrase banca rottawhich literally means broken benchbecause in medieval days, if a merchant couldnt pay their creditors, they could come break the merchants market stall (or bench).1

Get help with your money questions. Talk to a Financial Coachtoday!

What about bankruptcy in America, specifically? Well, several different bankruptcy acts popped up during times of economic crisis before the Bankruptcy Act of 1898. This one said bankruptcy didnt require the creditors approval and stuck around until the Bankruptcy Reform Act of 1978which set the laws we follow today.

Now when you file for bankruptcy, no ones coming to smash your bench (thank goodness!), but its still a painful experience.

What Are the Types of Bankruptcy?

There are six different types of bankruptcy:

Chapter 13 is a bankruptcy method for individuals where the court approves a plan for you to repay some or all of your debts over three to five years. You get to keep your assets and youre given time to bring your mortgage up to date. You agree to a monthly payment plan and have to follow a strict budget monitored by the court. (Theres no privacy in bankruptcy.)

People can file for Chapter 13 bankruptcy if their unsecured debt is less than $419,275 and their secured debt is less than $1,257,850.2

Chapter 7 bankruptcy is the most common type for individuals. In this case, the court sells all your assetswith some exceptionsso you can pay back as much debt as possible. The remaining unpaid debt is usually erased.

You could lose your home (or the equity youve put into it) and your car in the process, depending on what the court decides. Theres no set amount of debt you need to qualifythe court just has to decide you dont make enough money to pay off your debt.

Usually just for businesses, Chapter 11 creates a plan for how the business will still run while paying off all their debt.

Chapter 12 bankruptcy allows farmers and fishermen to get on a payment plan for their debts to avoid foreclosure on their property.

International bankruptcy cases are handled in Chapter 15.

Chapter 9 bankruptcy is a repayment plan for towns, cities, schools and the like to pay back their debt.

P.S. For specific information about bankruptcy laws in your area, visit theUnited States Courts website. There youll find info on the process and where to find help in your area. Theres a bankruptcy court for each judicial district in the United States90 districts in all.

How Does Bankruptcy Work

Youll see this theme throughout this entire article: bankruptcy sucks. If you can avoid it, avoid it. (See the What Are Alternatives for Declaring Bankruptcy section for practical ways to do just that.) But if you do everything possible to avoid bankruptcy and still come to that point, heres a quick overview of how to file for bankruptcy and the paperwork youll need to get ready.

Yeahit's going to feel like you're digging up and showing off every bit of private information you've ever had.Really, the only upside is they dont ask for that awkward eighth grade yearbook photo.

Theres a heck of a lot of paperwork and forms and documents involved in bankruptcy, but lets talk about what you need to gather up at the start:

Yes, thats a lot. Bankruptcy is not an easy out! Also, your particular state or court system may require more. Get ready to do a lot of hunting and have a lot of patience here.

What Happens if You Declare Bankruptcy?

If you declare bankruptcy, creditors have to stop any effort to collect money from you, at least temporarily. Most creditors cant write, call or sue you after youve filed.But even if you declare bankruptcy, the courts can require you to pay back certain debts. Each bankruptcy case is unique, and only a court can decide the details of your own bankruptcy.

Lets talk for a moment about what bankruptcy does and doesnt cover:

Bankruptcy can stop foreclosure on your home, repossession of property, or garnishment of your wages. (Garnishment is when the court orders part of your paycheck to be sent directly to your creditorwithout you ever seeing the money). Bankruptcy cancels manybut not allof your debts.

What Are the Consequences of Declaring Bankruptcy?

Lets not sugarcoat it: Bankruptcy takes a huge emotional toll on a person. It ranks up there with divorce, loss of a loved one, and business failure. Beyond the emotional impact, here are other effects of declaring bankruptcy:

This means your name and other personal information will appear in court records for the public to access. Thats right . . . Potential employers, banks, clients and businesses can access the details of your bankruptcy.

Filing fees for Chapter 13 bankruptcy will cost around $310 plus attorney fees, which can be anywhere from $3,000 to $4,000. For a Chapter 7 bankruptcy, youll shell out $335 for filing fees and $1,500 to $3,000 for an attorney.3

Unless you pay cash for a home, it could take one to four years before you qualify for a mortgage loan.4

We arent pro-credit scores, but its important for you to know a bankruptcy dings your FICO. Hard. And that ding lingers. Chapter 13 bankruptcies stay on your credit report for about seven years, and Chapter 7 stays on there for 10 years.

Weve touched on this some, but declaring bankruptcy doesnt make all your problems go awayand it doesnt even make all your debt go away. Most student loans, alimony, child support, any reaffirmed debt, unpaid taxes, government debts or court fines arent cleared in a bankruptcy.

Should You Declare Bankruptcy?

Listen. Weve said it before, and well say it again: Bankruptcy should be your very last option. Check out all the alternatives (aka how to avoid bankruptcy) below. Try each and every one. If nothing works, and youre still so overwhelmingly underwater that you simply cannot swimthen and only then do you declare bankruptcy.

What Are Alternatives to Filing for Bankruptcy

Before you even start gathering up that giant pile of documents you need to file for bankruptcy, go through this list of alternatives:

Budgeting may seem intimidating, but its just a plan for your money. And if youre planning to get out of debt and avoid bankruptcy, you cant do it without a budget. You need to see exactly what money you have coming in and where all of it is going.

Once you see what your money is doing, you can start telling it what you want it to do. And what you want is to have more money freed up to pay off that debt.

That means cutting extras and spending less money. That means learning tips on how to save money on everything. That means being super intentional with every single dollar you make and spend.

Yes, its work. But it could be the exact thing that keeps you from bankruptcy. Dont. Skip. This.

When youre making a budget that will work for you right now, where do you start? Whats the main stuff you need to focus on covering? Start with what we call your Four Walls: food, utilities, shelter and transportation. These are the main essentials.

Keep everyone fed, the lights on, a roof over your heads, and gas in the car to get to work. If these Four Walls are only things you can pay for while youre getting out of debt, thats called survival mode, and that may be what you need to jump into right now.

Heres the deal: If you declare bankruptcy, youre probably going to lose some of your stuff anyway. So right now, sell everything you can. Be the one in charge of what goes and what happens to the money coming in from those sales. Put all of that money straight toward your debt.

You dont have to walk this alone. Read that again: You dont have to walk this alone. Get with a financial coach and talk about your situation. They arent here to judgetheyre here to help.

A financial coach can help you figure out a personalized plan of action for your specific situation. And yes, talking about money can be terrifying, but if you declare bankruptcy, your financial privacy will be out the window immediately. Opening up to a trustworthy financial coach now can help you avoid having to open up to a whole courtroom of people in bankruptcy.

Another way to avoid bankruptcy is to bring in more money. Get yourself a side hustle. There are plenty of ways to work extra hours that fit into your schedule, and also plenty of work-from-home jobs that will keep you from spending extra drive time or gas money.

Youll be busy. But this is for a seasonand if youre on the verge of bankruptcy, youre at war right now. A war against your debt. The good news is, you know who wins. You. Even if you try every single alternative on this list and still cant fight off bankruptcy, you are not defeated.

Hey. We dont say this lightly: Bankruptcy sucks. We know. We also know you can rise above.

Learn how in Financial Peace University (FPU). The teachings in FPU started as conversations over coffee. People struggling with their finances wanted to hear from Dave Ramseyto get hope from his story of hitting rock bottom and digging his way out again. Those conversations eventually turned into our bestselling money course thats been helping people learn how to pay off debt, budget and build wealth for over 25 years. No matter their income. No matter their past.

Start Financial Peace University today and listen to Daves story, learn how to get out of this debt, and believe you can get through thisbankruptcy or no bankruptcy. Because you can. And you will.

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The Truth About Bankruptcy - Ramsey - Ramsey Solutions

Bankruptcy Basics provides basic information to debtors, creditors, court personnel, the media, and the general public on different aspects of federal bankruptcy law. It also provides individuals who may be considering filing a bankruptcy petition with a basic explanation of the different chapters under which a bankruptcy case may be filed and answers to some of the most commonly asked questions about the bankruptcy process.

The United States Bankruptcy Code (title 11, United States Code) and the Federal Rules of Bankruptcy Procedure, are available online and at your local law library. The local rules of practice and procedure adopted by each bankruptcy court are available on each court website or in person at their clerks office.

While the information presented is accurate as of the date of publication, it should not be cited or relied upon as legal authority. Bankruptcy Basics is not a substitute for the advice of a competent attorney, accountant, or financial advisor, nor is it a step-by-step guide for filing for bankruptcy.

The Administrative Office of the U.S. Courts and individual bankruptcy courts cannot provide legal or financial advice.

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Bankruptcy Basics | United States Courts

1. US court rejects J&J bankruptcy strategy for tens of thousands of talc lawsuits  CNN
2. J&Js Talc Bankruptcy Case Thrown Out by Appeals Court  The Wall Street Journal
3. U.S. court rejects J&J bankruptcy strategy for thousands of talc lawsuits  Reuters

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US court rejects J&J bankruptcy strategy for tens of thousands of talc lawsuits - CNN

1. Exclusive-Bed Bath & Beyond preparing to file bankruptcy as soon as this week -sources  Yahoo Finance
2. Here's What's Next for Bed Bath & Beyond as Bankruptcy Looms and Stores Close  The Wall Street Journal
3. What Happens To Bed Bath & Beyond Stock In Bankruptcy (NASDAQ:BBBY)  Seeking Alpha

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Exclusive-Bed Bath & Beyond preparing to file bankruptcy as soon as this week -sources - Yahoo Finance

Carvana Close To Bankruptcy And Impact Of Rising Interest Rates Starting To Hit Home - Forbes AI Newsletter December 10th  Forbes

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Carvana Close To Bankruptcy And Impact Of Rising Interest Rates Starting To Hit Home - Forbes AI Newsletter December 10th - Forbes

Carvana plans to open Denver car vending machine 'in the new year' despite bankruptcy worries  Denver 7 Colorado News

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Carvana plans to open Denver car vending machine 'in the new year' despite bankruptcy worries - Denver 7 Colorado News