Bankruptcy Means Being Insolvent [mortgageloans-protection.blogspot.com]
CALGARY, ALBERTA--(Marketwire - July 5, 2012) - NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES Poynt Corporation (TSX VENTURE:PYN)(OTCQX:PNYTF) ("Poynt Corp." or the ... Poynt Corporation Files a Notice of Intention under the Bankruptcy and ...
We were pleased to speak to Paul Colgan of RTE News on Two about the newly proposed Personal Insolvency Bill (soon to be an Act) 2012. We raised the issue of regulation as it is relevant to the Personal Insolvency Trustee who will carry out the debt settlements on behalf of borrowers. You can read our blog at www.mortgagebrokers.ie or our accountancy firm is at www.advisors.ie
mortgageloans-protection.blogspot.com RTE News on Two: Personal Insolvency Bill 2012 - Paul Colgan reporting
Not a lot of people actually understand what happens to a company when it declares bankruptcy. It isn't always the end of the world.
Not a day goes by that we don't read about another company going under and declaring bankruptcy. The statistics are dismal and the numbers keep getting higher as 2009 progresses. Who really knows where it will all end, or if it will?
When a company decides that it needs to declare bankruptcy, it doesn't always mean that they have reached a dead end. This is because bankruptcy is considered to be a legal state where a debtor is judged to be insolvent. Once this happens, their property is distributed to creditors and while they may be insolvent, they have a way to still protect themselves. This applies to corporations, as well as individuals.
In the US today there are two kinds of bankruptcy proceedings they may choose - Chapter 7 and Chapter 11.
If a company is choosing to file under Chapter 7, it is deeply in debt and its assets are normally sold to satisfy creditors. For instance, if a person owned a bookstore and the debts were piling up because no one could pay them, all the assets of the store, including fixtures, would be seized and sold to pay bills.Chapter 11 bankruptcy is a different kettle of fish, and companies that choose this route are choosing Chapter 11 bankruptcy to restructure their debt. Chapter 11 bankruptcies keep their assets/possessions, subject to court supervision. If a company has the protection of a Chapter 11 bankruptcy, they are usually also able to get loans with favorable terms. In addition, any legal proceedings against the company are put in abeyance until things are resolved in bankruptcy court.
The decision to declare, no matter what the circumstances, is a difficult one, and it really needs to be discussed in detail with a Chicago bankruptcy lawyer with expertise in this area.
Each Chicago bankruptcy case in unique and only a good lawyer will be able to discuss the various options available. Recommend Bankruptcy Means Being Insolvent Issues
