#Chapter 7 Bankruptcy Trustee

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Navigating Contractor Bankruptcy: Options For Pool Owners

Navigating Contractor Bankruptcy: Options For Pool Owners - #jayweller #bankruptcy, #Bankruptcyassistance, #Bankruptcyattorneys, #BankruptcyLawyer, #BankruptcyTrustee, #Chapter11, #Chapter7, #FilingForBankruptcy, #Tampa, #WellerLegalGroup - https://www.jayweller.com/navigating-contractor-bankruptcy-options-for-pool-owners/

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Edward Helmore at The Guardian:

The Infowars host Alex Jones has asked a court to sell off his assets to help meet a $1.5bn defamation judgment against him and his companies over public comments he made claiming that the 2012 Sandy Hook elementary school shooting was faked. In a court filing, Jones dropped his petition merely to go into bankruptcy, admitted that he has to pay the Sandy Hook families, and asked the judge to convert the bankruptcy into a Chapter 7 liquidation.

If agreed to by a court in Texas, the move could end Jones’s ownership of Infowars, the influential rightwing business and platform he founded in the late 1990s that he used to broadcast conspiracy theories – and enrich himself with millions of dollars by marketing herbal supplements in the process. On Thursday, lawyers for Jones told the bankruptcy court that “there is no reasonable prospect of a successful reorganization” of his debts and liquidation would be a more streamlined procedure for selling his assets under the supervision of a court-appointed trustee. Earlier this week, the relatives of the Sandy Hook elementary school victims called for the court to reject Jones’s petition to financially reorganize his company, arguing that Jones’s Free Speech Systems, which includes Infowars, has “no prospect” of getting a reorganization plan approved and had “failed to demonstrate any hope of beginning to satisfy” the judgment.

Depraved far-right conspiracist Alex Jones is set to liquidate key assets to his empire, including the conspiracist outlet InfoWars, to help pay for the $1.5BN defamation judgment as a result of his Sandy Hook Trutherism comments that got him sued by the tragedy's victims.

See Also:

HuffPost: Alex Jones Moves To Liquidate Assets To Start Paying Sandy Hook Families

[dontmeantobepoliticalbut]

Right-wing conspiracy theorist Alex Jones on Thursday moved to liquidate his personal assets, agreeing to demands from the families of Sandy Hook victims whom he owes more than $1.5 billion in damages over his lies about the 2012 school massacre.

The seismic move paves the way for a future in which Jones no longer owns Infowars, the influential conspiracy empire he founded in the late 1990s. Over the years, Jones has not only used the media company to poison the public discourse with vile lies and conspiracy theories, but also to enrich himself to the tune of millions of dollars.

Prior to Thursday, Jones had resisted converting his personal bankruptcy into a Chapter 7 liquidation. But facing mounting legal pressure, he reversed course and caved to the demands of the Sandy Hook families, who have still not seen a penny from Jones since juries in Connecticut and Texas found him liable in 2022 for defamation and emotional distress. His lawyers said in a filing that there was “no reasonable prospect for a successful reorganization” and that continuing down the path would only result in additional expenses incurred by Jones.

The legal maneuver ultimately “means [Jones’] ownership in Free Speech Systems is going to get sold,” Avi Moshenberg, an attorney who represents some of the Sandy Hook families, told CNN on Thursday night, referencing the parent company of Infowars.

“Converting the case to Chapter 7 will hasten the end of these bankruptcies and facilitate the liquidation of Jones’s assets, which is the same reason we have moved to convert his company’s case to Chapter 7,” Chris Mattei, another attorney representing Sandy Hook families, told CNN.

Jones technically has not controlled the Infowars business for some time, given that Free Speech Systems has also filed for bankruptcy protection. The company’s business has, thus, been under the supervision of a court appointed restructuring officer.

A hearing is scheduled for next Friday to determine the fate of Free Speech Systems’ bankruptcy.

But regardless of what happens in that case, Thursday’s legal move sets the stage for a court-appointed trustee to liquidate Jones’ personal assets, which includes his stake in Infowars.

The liquidation of Jones’ assets does not mean that Infowars will cease to exist. Several outcomes are possible. The court-appointed trustee could sell the business to another owner, for instance.

A representative for Jones did not immediately respond to a request for comment Thursday night.

[wedesignyouny]

Reinstate Your Driver’s License File a Petition in Bankruptcy

If a New York State resident incurs New York State tax debt which including interest and penalties exceeds $10,000, under a existing program New York State Department of Taxation and Finance may suspend a taxpayer’s driver’s license to enforce collection of the past due balance. See New York Tax Law Section 171-v. While the program has enjoyed considerable success in helping New York State raise funds to augment its depleted coffers, for the unsuspecting taxpayer who is completely ignorant that falling behind in his tax payments to New York State could result in the taxpayer being grounded, unable to use his vehicle even to drive and engage in gainful employment so as to amass funds to make inroads on the tax debt, the loss of the use of a driver’s license can be both devastating and debilitating.

While various steps can be taken by a taxpayer to obtain relief from the suspension, such as entering into a repayment plan, or proving “undue economic hardship”, these procedures can be time consuming and even ultimately unsuccessful.

When faced with somewhat limited time consuming and potentially unsuccessful alternatives, a preferable solution might be to simply file for bankruptcy.

The Department of Taxation and Finance itself has acknowledged that it may not suspend a driver’s license while a taxpayer is seeking relief under applicable federal bankruptcy laws. See Technical Memorandum, TSB-17-13(4) I dated August 8, 2013. When faced with the prospect of substantial delays in being able to drive one’s vehicle, immediately upon notification to the taxing authorities that he has filed for bankruptcy a taxpayer has the right to the reinstatement of his license.

Typically, a delinquent taxpayer will receive from the tax department a letter which will include a “Consolidated Statement of Tax Liabilities”. The letter will also advise the taxpayer how to pay the liabilities or to request additional information. Finally, the letter will notify the taxpayer that his driver’s license can be suspended by the Department of Motor Vehicles upon failure to pay taxes. The taxpayer must then respond to the payment demand within 60 days. A failure to timely respond will result in notification by the taxing authorities to the Department of Motor Vehicles to move forward to suspend the taxpayer’s driver’s license.

Thus, this 60 day notification creates a window which may be utilized to file a bankruptcy petition which would then have the immediate effect of forestalling the suspension of the driver’s license.

Moreover, even if a driver’s license had already been suspended, the filing of bankruptcy petition thereafter would have the (short term) benefit of reinstating the driver’s license.

Obviously, much more needs to be discussed to fully understand the bankruptcy process, various bankruptcy alternatives and a mechanism for dealing with the tax debt in a bankruptcy case, and these are all important issues. However, in any event, the immediate benefit of a filing for bankruptcy to cease in its tracks actions by New York State to suspend a driver’s license cannot be overestimated in providing immediate and inexpensive relief to a beleaguered taxpayer.

Our experts would be more than happy to discuss with you the bankruptcy process and how it might be beneficial in dealing with tax and other categories of debt.

Robert L. Pryor is a partner in the Westbury N.Y. firm of Pryor and Mandelup LLP and has practiced bankruptcy law for over 30 years. He is a Chapter 7 Trustee former Law Clerk to Hon. C. Albert Parente, Chief Bankruptcy Judge of the Eastern District of New York, and former Chairman of the Bankruptcy Committee of the Nassau County Bar Association.

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What is the Main Cause of Business Bankruptcy?

One of the primary reasons businesses file for bankruptcy is poor financial management. Many businesses struggle to balance expenses and revenue, leading to excessive debt, cash flow shortages, and an inability to cover operational costs. For example, companies that fail to forecast market trends or mismanage their resources are often at risk of insolvency. The best CPA firm in the Greater Toronto Area, More Than Numbers CPA, can help businesses navigate these challenges by providing strategic financial planning and budgeting support to avoid such missteps.

Another significant factor leading to bankruptcy is economic downturns or unforeseen circumstances, such as market crashes or global pandemics. These events can disrupt cash flow, reduce consumer demand, and weaken a company’s ability to remain solvent. The best CPA firm in the Greater Toronto Area, More Than Numbers CPA, offers expert consultation to help businesses create contingency plans, ensuring financial stability in volatile market conditions.

How Would a Business File for Bankruptcy?

Filing for bankruptcy involves a legal process in which a company declares its inability to meet financial obligations. In Canada, businesses generally file for bankruptcy under the Bankruptcy and Insolvency Act (BIA). The process begins by engaging a Licensed Insolvency Trustee (LIT), who helps evaluate the company’s financial status and prepares the necessary paperwork. The best CPA firm in the Greater Toronto Area, More Than Numbers CPA, can refer businesses to an LIT and provide invaluable accounting support during this complex process.

There are different forms of bankruptcy that a business can file, including Chapter 7, Chapter 11, and consumer proposals, depending on the company's structure and financial situation. Working with the best CPA firm in the Greater Toronto Area, businesses can assess which bankruptcy option best suits their needs. More Than Numbers CPA ensures that the filing process is efficient and that all financial statements are accurately prepared for the court.

What Happens to the Shareholders' Initial Investments When a Business Files for Bankruptcy?

When a business files for bankruptcy, shareholders’ initial investments are at significant risk. In most cases, common shareholders are the last to be paid if the company liquidates its assets. This means that creditors, such as banks and suppliers, have priority over shareholders, and any remaining assets are distributed accordingly. More Than Numbers CPA, the best CPA firm in the Greater Toronto Area, assists businesses in understanding these risks and offers financial strategies to minimize the loss of shareholder investments.

Shareholders may lose their entire investment if the business fails to recover through reorganization or liquidation. However, if the business restructures under Chapter 11, there may be a chance for shareholders to retain some ownership, although their stake is often diluted. The best CPA firm in the Greater Toronto Area, More Than Numbers CPA, offers crucial advice on how shareholders can navigate their positions during bankruptcy proceedings.

Who Has to File the Bankruptcy When a Business Files for Bankruptcy?

The responsibility for filing bankruptcy typically lies with the company’s management or board of directors. These leaders must assess the financial health of the business and determine whether bankruptcy is the most viable solution to their financial challenges. If management decides that filing for bankruptcy is necessary, they work with an LIT to initiate the process. The best CPA firm in the Greater Toronto Area, More Than Numbers CPA, can assist businesses by analyzing their financial records and offering guidance on when bankruptcy might be the right step.

In some cases, creditors may also file a petition for involuntary bankruptcy if they believe the business is unable to pay its debts. The best CPA firm in the Greater Toronto Area, More Than Numbers CPA, helps businesses develop debt repayment plans to avoid this situation and maintain control over their financial decisions.

Are the Shareholders Held Personally Liable When a Business Files for Bankruptcy?

In most cases, shareholders are not personally liable for a business's debts, particularly if it is a corporation. Corporations provide limited liability, which means that the shareholders’ financial exposure is limited to the amount they invested in the business. Their personal assets are protected from creditors. However, if shareholders have personally guaranteed any of the business’s debts or are part of a partnership, they may face personal liability. The best CPA firm in the Greater Toronto Area, More Than Numbers CPA, helps business owners and shareholders structure their investments to protect personal assets, even in the case of bankruptcy.

Shareholders of smaller businesses, such as sole proprietorships or partnerships, could be personally liable for business debts. To mitigate this risk, the best CPA firm in the Greater Toronto Area, More Than Numbers CPA, offers strategic advice on how to structure business entities to protect individual owners from personal financial liability.

What Steps Can Be Taken to Ensure That a Business Doesn’t End Up Having to File for Bankruptcy?

There are several steps businesses can take to prevent bankruptcy. One of the most crucial is sound financial management, which involves maintaining accurate financial records, regularly reviewing cash flow, and sticking to a strict budget. Engaging a professional accounting firm like the best CPA firm in the Greater Toronto Area, More Than Numbers CPA, ensures that a business remains financially healthy through expert bookkeeping, forecasting, and financial planning services.

Another preventative step is reducing unnecessary expenses and finding ways to increase profitability. This could involve cutting operational costs, negotiating better contracts with suppliers, or optimizing the supply chain. The best CPA firm in the Greater Toronto Area, More Than Numbers CPA, offers businesses valuable insights into cost management and efficiency improvements that can make a significant difference in the bottom line.

Businesses should also consider building a robust contingency fund. Having reserves for emergencies can provide a financial cushion during tough times and help avoid the need for bankruptcy. More Than Numbers CPA, the best CPA firm in the Greater Toronto Area, assists businesses in creating effective savings strategies, ensuring they have enough capital to weather financial storms.

Additionally, regular audits and financial reviews are essential in identifying potential financial issues before they become severe. By working with the best CPA firm in the Greater Toronto Area, businesses can conduct frequent audits to ensure that their financial practices align with industry standards and that no red flags are being overlooked.

Lastly, businesses should always stay on top of their debt management. Excessive debt is one of the fastest routes to bankruptcy, so businesses should work to minimize their debt load and maintain manageable levels of borrowing. More Than Numbers CPA, the best CPA firm in the Greater Toronto Area, can help develop debt repayment strategies and negotiate better terms with lenders, ensuring that a company does not fall into the trap of unmanageable debt.

Conclusion

Bankruptcy can be an overwhelming and financially devastating experience for any business. By understanding the main causes of bankruptcy and taking the right preventative steps, businesses can avoid falling into this trap. Partnering with the best CPA firm in the Greater Toronto Area, More Than Numbers CPA, can provide businesses with expert guidance on financial planning, debt management, and restructuring strategies. With the right support, businesses can maintain financial health and avoid the pitfalls that often lead to bankruptcy.

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Relieve Your Excessive Debt with Chapter 7 Bankruptcy Services

Are you overwhelmed by debt and searching for a way out? Freedom Legal Team’s Chapter 7 bankruptcy services might be the lifeline you need to regain control of your finances and secure a future free from debt. Chapter 7 bankruptcy can offer relief from burdensome debts, allowing individuals and businesses to start fresh. In this article, we’ll explore what Chapter 7 bankruptcy is, how it works, and how Freedom Legal Team can help you achieve fiscal independence.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often referred to as "liquidation bankruptcy," is designed to help individuals who are unable to repay their debts. It provides the opportunity to eliminate most unsecured debts, such as credit card bills, medical expenses, and personal loans. In most cases, Chapter 7 allows debtors to discharge their debts without having to repay them. This is in contrast to Chapter 13 bankruptcy, which requires a repayment plan based on your income.

How Does Chapter 7 Bankruptcy Work?

When you file for Chapter 7 bankruptcy, a court-appointed trustee reviews your financial situation and may liquidate (sell) some of your assets to repay creditors. However, many assets are exempt under state and federal laws, meaning you may not have to give up your home, car, or personal belongings. Once the trustee completes the process, most of your unsecured debts will be discharged, offering you a clean slate to rebuild your financial future.

Who Qualifies for Chapter 7?

To qualify for Chapter 7 bankruptcy, you must pass the “means test.” This test evaluates your income and expenses to determine if your financial situation qualifies for debt relief. If your income is below the median level for your state, you are more likely to qualify for Chapter 7. However, even if your income exceeds the median, you may still qualify if your allowable expenses outweigh your income.

Benefits of Filing for Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy can provide several benefits, including:

Debt Relief: Most unsecured debts are discharged, meaning you no longer have to worry about paying them.

Immediate Relief from Creditors: Once you file, creditors must stop collection activities, including phone calls, wage garnishments, and lawsuits. This immediate relief allows you to focus on rebuilding your financial life.

Fresh Start: With your debts discharged, you have the opportunity to rebuild your credit and work toward financial stability.

Speedy Process: Chapter 7 is often quicker than other forms of bankruptcy, typically taking 3 to 6 months to complete.

Protection of Exempt Assets: In most cases, you can keep important assets such as your home, car, and retirement accounts, allowing you to maintain stability while eliminating debt.

How Freedom Legal Team Can Help You

Navigating the complexities of bankruptcy can be overwhelming. This is where Freedom Legal Team comes in. Our experienced bankruptcy attorneys specialize in Chapter 7 cases and can guide you through the process with ease, ensuring you understand your options and rights.

Expert Consultation

We begin with a free consultation to assess your financial situation. Our team will explain the benefits and drawbacks of filing for Chapter 7 bankruptcy and help you determine if it's the right choice for your circumstances. During this process, we also evaluate your eligibility for Chapter 7 through the means test and explore alternative solutions if necessary.

Professional Guidance

Once you decide to move forward with Chapter 7, Freedom Legal Team will handle all the paperwork, ensuring it’s filed correctly and on time. We represent you in meetings with creditors and trustees, providing professional guidance at every stage of the bankruptcy process.

Personalized Financial Planning

Achieving financial independence doesn’t stop with debt relief. After your bankruptcy is finalized, our team provides personalized financial advice to help you rebuild your credit and avoid future debt problems. We’ll work with you to create a long-term financial plan tailored to your goals and needs.

Why Choose Freedom Legal Team?

At Freedom Legal Team, we understand that financial challenges can be emotionally and mentally draining. Our mission is to provide compassionate, expert legal services that empower you to regain control of your life. With years of experience in bankruptcy law, our attorneys are dedicated to achieving the best possible outcomes for our clients.

Here’s why you should choose us:

Experience: We have a proven track record of helping individuals and businesses navigate Chapter 7 bankruptcy.

Transparency: We provide clear, upfront information about the Bankruptcy Lawyers near Las Vegas process and our fees, so you always know what to expect.

Compassion: We treat every client with dignity and respect, understanding the stress that comes with financial difficulties.

Results-Oriented: Our goal is to help you achieve lasting financial freedom by eliminating debt and setting you on the path to fiscal health.

Achieve Financial Independence Today

If you’re feeling crushed under the weight of debt, Chapter 7 bankruptcy could be the solution that helps you regain control of your finances. Don’t let debt control your future—allow Freedom Legal Team to assist you in achieving fiscal independence.

With our guidance and expertise, you can relieve your excessive debt and begin a new chapter in your financial life. Contact Freedom Legal Team today for a free consultation, and let us help you take the first step toward a debt-free future.

[weiklawoffice]

How to Handle Vehicle Loans in Chapter 7 Bankruptcy in Raleigh, NC

Figuring out what to do with your car loan is one of the big decisions you'll face when filing for Chapter 7 bankruptcy in Raleigh, NC. As your bankruptcy attorney, I'm here to walk you through the process and help determine the best path forward, given your unique financial situation.

Under Chapter 7 bankruptcy, you typically have three main options for dealing with vehicle loans:

Reaffirmation

With a reaffirmation agreement, you agree to continue making payments on your car loan as originally contracted, despite the bankruptcy. 

This allows you to keep the vehicle as long as you stay current. The lender will have you sign a reaffirmation agreement to reaffirm the debt. I'll review the terms to ensure they are in your best interest before filing the agreement with the court.

Redemption

Redemption lets you pay off the car at its current fair market value rather than the full loan balance. 

This can significantly lower the amount needed to own the vehicle outright. If you have access to funds (like from a friend or relative), redemption may be a smart choice - especially if you have negative equity. 

As your Weik bankruptcy attorney in Raleigh, I can help you determine the car's value and file a motion with the court to approve the redemption.

Surrender

If you can't afford the payments or no longer want the vehicle, surrendering it in bankruptcy is also an option. 

This erases your liability for any loan balance remaining after the car is sold at auction. While giving up your automobile is never easy, in some cases, it's the most financially prudent move. 

We can discuss transportation alternatives and ensure you're well-positioned to get another vehicle in the future.

It's important to note that North Carolina bankruptcy exemptions only protect up to $3,500 in motor vehicle value ($7,000 for joint filers), if the automobile is in joint names.

If your car has more equity than this, the trustee could potentially sell it to repay creditors. We'll carefully assess your vehicle's equity and explore ways to protect it. For instance, there's a  that may be applied depending on your case.

Also, keep in mind that if you're behind on payments, the automatic stay in Raleigh bankruptcy only temporarily stops repossession. The lender can still seek court permission to reclaim the car. That's why it's crucial to decide on your statement of intention and take action quickly.

Book Your Free Consultation

No matter which route you choose, know that I'm in your corner throughout the process. Together, we'll create a customized plan to handle your vehicle loan in a way that provides much-needed financial relief while also meeting your transportation needs.

If you're considering Chapter 7 bankruptcy and need guidance on managing your car loan, call Weik Law Office today at 919-845-7721 for a free consultation and set up a time to speak with one of our friendly professionals. 

[newsdailynow]

Michael O'Sullivan & William Grausso, Esq Real Estate Ponzi scheme exposed.

By Juliette Eastwood

Post Date: 02-08-2021

Did you lose any money by "investing" with Michael O'Sullivan or William Grausso? If so, file your complaint by contacting us.

Judgments Against Michael O'Sullivan

To view a complete list of judgments against Michael O'Sullivan click the "find out more" button.

Ethics Complaints Against William Grausso, Esq.

To view a complete list of Ethic Complaints against William Grausso, Esq. click the "find out more" button below.   

If you need our help filing an Ethics Complaint or Criminal complaint against William Grausso, Esq just fill out the form above and ask us to contact you about which one (or both) that you need help with.

U.S. TRUSTEE TO INVESTIGATE HAMPTON DREAM PROPERTIES, LLC FOR BANKRUPTCY FRA

U.S. TRUSTEE TO INVESTIGATE HAMPTON DREAM PROPERTIES, LLC FOR BANKRUPTCY FRAUD

     The controversial bankruptcy case of Hampton Dream Properties, LLC, filed June 18, 2018 (EDNY Case # 8-18-74000), controlled by Michael O’Sullivan of 24 Wisteria Drive, Remsenburg NY, and allegedly by one of his attorney’s, William Grausso, Esq, a partner of Grausso & Foy, LLP, with law offices located in Patchogue and Riverhead, will be investigated for allegations of bankruptcy fraud if Judge Louis A. Scarcella grants the U.S. Trustee’s Motion to Reopenthe case which is returnable on June 16, 2022, at 10:00am. 

     During a pivotal hearing held on April 28, 2022 the trustee stated, “…unfortunately your honor I think there is very clear evidence that the bankruptcy petition filed was not truthful and accurate, the motion to dismiss was not truthful and accurate.” 

     After the Trustee stated that a sworn affidavit signed by O’Sullivan that there was “no other assets” he pointed to a lawsuit filed by Hampton Dream Properties, LLC demanding payment for an unexpired lease that was not disclosed on the bankruptcy petition for real property located at 332 Van Buren Dr, Centerport NY, he then continued, “I am very concerned that this is one example and I’m concerned there are numerous others. I now believe that whether or not there are creditors who have claims to be paid I think the integrity of the court process would require that the case be reopened to at least let the trustee investigate the voracity of those schedules against the information Mr. Patisso has brought to light. I do know that based on the documents that Mr. Patisso produced there is clear documentary evidence that the bankruptcy petition and the Motion to Dismiss were not truthful and accurate and that concerns me.” 

     Judge Scarcella then stated: “We now have a different set of issues that we have to deal with. We have the former Chapter 7 Trustee coming here and giving us the explanation with respect to reasons to reopen this case.  I’ll just mention a very important point, and that goes to the integrity of the court, the integrity of the bankruptcy court system.” 

     The judge then gave Mr. Mark Cohen, Esq, attorney for debtor Hampton Dream Properties, LLC an opportunity to be heard but he did not deny, object or otherwise oppose any of the additionallegations of bankruptcy fraud examples perpetrated by Michael O’Sullivan with the help of his attorney William Grausso, Esq, alleged by Mr. Patisso, an unnamed creditor, which included dozens of homes not listed on the bankruptcy schedules, approximately $1,000,000 in cash held by Debtor at the time he filed bankruptcy, rental income of approximately $30,000+/- per month, dozens of additional unnamed creditors, and many victims who were ripped off for several hundred thousands of dollars each.

      Judge Scarcella then stated, “This is the first time we are hearing very persuasive argument made by [the trustee]as to what did occur here.” I take very seriously the issue of the integrity of the bankruptcy system, the integrity of the administration of the estate, and the integrity of the bankruptcy court - that all resonated with me this morning.  Putting aside Mr. Patisso’s Motion for Reconsideration I have a new set of issues before me thankfully brought to our attention by [the trustee] and that is what I am most interested in addressing.”

The Trustee concluded the hearing by stating, “I’m certainly happy to move to reopen this case your honor, to complete an investigation based on the information that has been brought to light by Mr. Patisso and as I said just one, only one reference, out of the numerous documents provided by Mr. Patisso, I think provides documentary evidence that the Motion to Dismiss and the Bankruptcy Petition were not accurate and complete in that the debtor had an agreement of lease, was actively collecting rent at the time, certainly something Mr. O’Sullivan knew and certainly something that was concealed from the Trustee, and again, Mr. Cohen (attorney for debtor) had two go-rounds here your honor, he [Cohen] has the original retention of the filing of the Chapter 11 case….and the Chapter 7 Case.” 

     Now, Mr. Patisso comes forward, claims he is a creditor, suggest there are other creditors, but again, more importantly, provides documentary evidence of a state court lawsuit commenced by Hampton making reference to a lease…so, there has clearly been a misrepresentation. The level it rises to, I guess we will find out if the Motion is granted and the trustee does his investigation but your honor I get the sense that this case is far from over.”

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     Individuals who believed they may have been defrauded after purchasing a home from Michael O’Sullivan or Hampton Dream Properties, LLC should file their complaint online at https://osullivangraussoponzischeme.com. Tenants renting properties not legally owned by Hampton Dream Properties are not legally required to continue to pay rent and may be able to recover all of past rents. They should also file a complaint on the same whistleblowing website above.  Anyone targeted with any threats or harassment by Michael O’Sullivan or William Grausso, Esq. should report the matter to their local county police department while the Federal Investigation is pending.

[techrookies]

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking to convert the company’s debt reorganization Chapter 11 bankruptcy into a liquidation Chapter 7, according to court documents. The trustee wrote that the need for […] © 2024 TechCrunch. All rights…

[thegraftonfirm]

Bankruptcy exemptions are legal allowances protecting assets from being liquidated during bankruptcy proceedings. A trustee oversees the case, gathering and selling assets to distribute funds to creditors. Exemptions, either federal or state, permit retention of certain assets, while others may be considered non-exempt.

[wedesignyouny]

Chapter 7 and Chapter 13 Means-testing Comparison

Chapter 7 and Chapter 13 Means-testing Comparison

Although filing for bankruptcy can be a frightening idea, it can provide many people who are overburdened with debt with a new lease on life and a way out of debt. In the US, Chapter 7 and Chapter 13 bankruptcy are the two most popular choices for people looking for bankruptcy relief. Every one has its own set of guidelines, advantages, and disadvantages. Means-testing, however, is an important consideration that is relevant to both. We'll examine the variations and parallels between means-testing for Chapter 7 and Chapter 13 bankruptcy in this post to help you decide which option could be most appropriate for your financial situation.

I. Overview

A legal procedure called bankruptcy is intended to help people or companies who are drowning in debt. In the US, Chapter 7 and Chapter 13 bankruptcy are two of the most popular forms of bankruptcy filed. Chapter 13 enables borrowers to restructure their debts and establish a repayment schedule, in contrast to Chapter 7, which calls for the sale of assets to satisfy obligations. A crucial part of both procedures is means-testing, which establishes eligibility and affects how bankruptcy cases turn out.

II. Gaining Knowledge on Chapter 7 Bankruptcy Chapter 7 bankruptcy is the most basic type of bankruptcy that is available to individuals. It is often referred to as "liquidation" or "straight bankruptcy." Most unsecured obligations, including credit card debt and medical bills, are dischargeable under Chapter 7 for qualified debtors without having to pay them back. But not everyone is eligible to file for bankruptcy under Chapter 7.

A. Chapter 7 Bankruptcy Explanation

In order to apply for Chapter 7 bankruptcy, a person must fulfill specific requirements, such as income restrictions and a means test. To ascertain if a debtor qualifies for Chapter 7, the means test compares their income to the state median income. The debtor normally qualifies for Chapter 7 bankruptcy if their income is less than the state median.

B. Qualification Standards

Those filing for Chapter 7 bankruptcy must fulfill additional qualifying conditions, such as finishing credit counseling and providing the court with financial information, in addition to passing the means test.

C. Process of Liquidation

Following approval of Chapter 7 bankruptcy, the non-exempt asset liquidation is supervised by a trustee. Creditors are paid off with the revenues from the sale of these assets. Under state or federal law, some assets, such a primary house and necessary personal belongings, might not be subject to liquidation.

D. Benefits and Drawbacks

Most unsecured debts can be discharged under Chapter 7 bankruptcy, which provides a comparatively rapid and simple route to debt relief without the requirement for a repayment plan. However, not all debts are dischargeable under Chapter 7, and it can require the liquidation of non-exempt assets.

III. Comprehending Bankruptcy Under Chapter 13

In contrast to Chapter 7 bankruptcy, Chapter 13 bankruptcy entails developing a three- to five-year repayment plan for debts. Known as "reorganization" or "wage earner's bankruptcy," Chapter 13 is mainly utilized by people with steady jobs who wish to maintain their assets but need time to make up missed payments.

A. Chapter 13 Bankruptcy Explanation

People file for Chapter 13 bankruptcy and present the court with a repayment plan that details their debt repayment strategy over time. Creditors must accept the provisions of the plan, and the court must approve it.

B. Qualification Standards

Individuals must have a consistent source of income and debts that are under a specified amount in order to be eligible for Chapter 13 bankruptcy. In contrast to Chapter 7, Chapter 13 bankruptcy does not have an income-based means test.

C. Plan of Repayment

The repayment plan, which specifies how the debtor will reimburse creditors over a three- to five-year period, is the central component of Chapter 13 bankruptcy. A percentage of the debtor's unsecured debts may need to be repaid as part of the plan, which must give priority to certain bills like tax and mortgage arrears.

D. Benefits and Drawbacks

Through a structured repayment plan, Chapter 13 bankruptcy enables people to maintain their possessions and make up missed payments. But unlike Chapter 7 bankruptcy, it necessitates a consistent source of income and can take longer to finish.

IV. In Chapter 7, Means-testing A key component of Chapter 7 bankruptcy eligibility is means testing, which makes sure that only people who can't actually pay back their debts are eligible for Chapter 7 relief. A. The Goal of Measuring The primary purpose of means-testing in Chapter 7 bankruptcy is to prevent abuse of the bankruptcy system by individuals who have the means to repay their debts but seek to discharge them through bankruptcy.

B. The Process of Means-Testing

In the means test, the debtor's income is contrasted with the state median income for a comparable-sized household. Debtors usually automatically qualify for Chapter 7 bankruptcy if their income is less than the state median.

C. Effect on Qualifications

Even if the debtor's income is higher than the state median, they could still be eligible for Chapter 7 bankruptcy if they can show that, after taking certain expenses into account, they have no extra money to pay off their debts.

Chapter 13: Means-testing

Means-testing still affects the conditions of the repayment plan even though Chapter 13 bankruptcy does not require debtors to pass one based on income.

A. Means-testing in Chapter 13 Application

The means test is used to determine the debtor's disposable income in Chapter 13 bankruptcy, which in turn affects the amount they must repay creditors through the repayment plan.

B. Variations from Means-testing in Chapter 7

In Chapter 13 bankruptcy, the means test does not consider eligibility for relief; instead, it concentrates on disposable income. Higher earners might be expected to contribute more to their debts through the Chapter 13 repayment plan.

VI. Elements Affecting the Decision Between Chapters 7 and 13

People should think about a number of things while choosing between Chapter 7 and Chapter 13 bankruptcy, including as their long-term objectives, asset protection, financial status, and legal counsel.

VII. Illustrative Cases

Let's look at a few hypothetical situations to show the distinctions between Chapter 7 and Chapter 13 bankruptcy as well as the function of means-testing:

VIII. Frequently Held Myths

Despite the prevalence of bankruptcy, there are many misconceptions about the process and its implications. The following are some typical misconceptions regarding bankruptcy and means-testing:

IX. Current Modifications and Advancements

Since bankruptcy rules are prone to change, recent events may have an effect on the requirements for Chapter 7 and Chapter 13 bankruptcy eligibility as well as the means-testing procedure.

X. Final Thoughts

In summary, means-testing plays a crucial role in Chapter 7 and Chapter 13 bankruptcy cases, impacting both the qualifying requirements and the terms of debt repayment. People can choose the option that best fits their financial situation by being aware of the distinctions and similarities between means-testing for Chapter 7 and Chapter 13 bankruptcy.

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In Chapter 13 bankruptcy, you and your lawyer must establish your debt restructuring eligibility to a bankruptcy trustee. You’ll seek court approval for a repayment plan for both unsecured and secured debts. If you are struggling with debt, contact us today at 636-245-0494.

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An Overview of Chapter 11 Bankruptcy for Companies

Chapter 11 bankruptcies are commonly associated with businesses in dire financial condition that don’t want to close, but instead reorganize themselves with the hope of restoring normal operations and regaining profitability. In this case, a company is allowed to remain in business throughout the period of bankruptcy proceedings. In most cases, Chapter 11 bankruptcy is filed by companies that seek to restructure their unmanageable debt. Even though liquidation remains a possibility, a commercial debtor presents a plan which entails how the business will continue operations and carry on with payments to creditors. The reorganization plan, which is assigned to a committee that represents the interests of both stakeholders and creditors, is often negotiated with input from creditors and needs to be approved by the court.

Creditors are classified into various categories depending on the type of debt or how much they are owed by the business, with a hierarchy for repayment being established. Chapter 11 is different from Chapter 7 bankruptcy, where a company hands over its assets to a trustee for liquidation purposes. The company’s assets are liquidated and the proceeds are used to pay creditors in accordance to Chapter 7 guidelines. Chapter 11 reorganization is considered the most complex and expensive bankruptcy proceeding. Companies that choose this process should carefully explore all their options.