Business is about taking risks. Sometimes you win; sometimes you lose. The community wants people to associate together and take business risks; that is why states provide for the formation of corporations and other limited liability entities. Workers in groups can do big things. On the other hand, we don’t want a free-for-all when the chips are down. We don’t want a first to sue mentality in the business world. That is why we allow for business bankruptcies. There are two types – liquidation, where recovery is hopeless– and reorganization — where if we can maintain order, we might just recover from the downturn.

If your business in trouble, you should get advice from objective outsiders who can evaluate your chances more clearly that you might. If you are worn out, tired of the rat race and the headache of debt, you might give up too easily. On the other hand, if you are married to your business and clinging desperately when you should let go, you may just be wasting time and energy?  Call some of the attorneys and advisors listed in these posts for an objective opinion about your situation! Take back control of your life and have peace of mind!

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com

8 or 6 Years Before Your Chapter 7 Bankruptcy
You are eligible for a Chapter 7 discharge after 8 years have passed from the date you filed a prior Chapter 7 case and received a discharge; or after 6 years have passed if you filed a Chapter 13 case and received a discharge.
4 or 2 Years Before Your Chapter 13 Bankruptcy
You are eligible for a Chapter 13 discharge after 4 years have passed from the date you filed a prior Chapter 7 case and received a discharge or after 2 years have passed from the date you filed a Chapter 13 case and received a discharge.
If you have tried to delay or defraud your creditors by transferring, hiding, or destroying your property within a five-year period prior to your bankruptcy, the court may deny you a Chapter 7 discharge and even allow your creditors to recover the property that you transferred.
1 Year Before Your Chapter 7 Bankruptcy
If you pay back one of your creditors who is also a relative or close business associate (“insider”) at any time within the 1-year period prior to the filing of your bankruptcy case, any amount over $600 may be recovered by the Chapter 7 trustee and the amount may then be distributed to your other creditors.
If you had a prior bankruptcy case dismissed within one year of the time you file a Chapter 7 case, the Automatic Stay entered in the Chapter 7 case will be terminated within 30 days unless you can demonstrate that the Chapter 7 case was filed in good faith.
180 Days Before Your Bankruptcy
If within 180 days before your bankruptcy you had a prior bankruptcy case that was dismissed because you failed to obey court orders or you voluntarily requested a dismissal, then you may not file your bankruptcy case until this 180 day period expires.
Also, within 180 days of your bankruptcy filing, you must receive an individual or group briefing from an approved non-profit budget and credit-counseling agency.
90 Days Before Your Bankruptcy
You must be a resident of the state in which you intend to file your bankruptcy case for at least 90 days before the filing. If you have not lived in the state in which you intend to file your case for at least 90 days, you may only file your case in the state where you have resided, or which has been the location of your principal assets, for a majority of the prior 180 days.
Also, if you pay back any of your creditors over $600, even one who is not a relative or close business associate (“insider”), at any time within the 90-day period prior to the filing of your bankruptcy case, the payment may be considered a “preference” payment and the court may recover the amount over $600 and distribute it to your other creditors. This usually does not apply to payments on secured loans like mortgages and car notes.
If you incurred new debt of $500 or more for “luxury goods or services” within the 90-day period before your bankruptcy, or if you obtain a cash advance in the amount of $750 or more within a 70-day period before your bankruptcy, the debt is presumed to be nondischargeable.
You meet with our law firm for the initial consultation, retain our office and receive the bankruptcy packet of information for your completion. You complete your first step of credit counseling.
You return to our office for your Be-Back appointment where you meet with your paralegal to drop off your completed questionnaire, documents and attorney fee balance.
You return a third time to our office to meet with your attorney and paralegal to review and sign your petition and ask any follow up questions.
Your Case is Filed!
Your case is formally commenced when we file your bankruptcy petition with the appropriate bankruptcy court. As soon as we file your petition, the court will enter an Automatic Stay order prohibiting your creditors from taking or continuing any collection or legal action against you. This means no more harassing letters or phone calls while your case is in progress.
Next, the court will send a notice of your case to all of the creditors listed in your petition.
Additionally, the bankruptcy court will assign a bankruptcy trustee to oversee your case. The trustee is a federal employee appointed by the court to monitor your case and make sure you are eligible for bankruptcy. The trustee will review your petition, make sure that it is complete, and then schedule a meeting of your creditors.
15 Days After Your Case is Filed
You have a deadline of 15 days after you file your petition to file certain financial “schedules” with the court. These are documents declaring your assets, liabilities, expenses, income and a statement of your affairs. In most cases, however, we will file these forms for you with your petition.
Approximately 15 Days After Your Case is Filed
Within approximately 15 days after you file your case, the court will mail the Notice of Commencement of Case to you and to all of the creditors listed in your petition. This notice will inform you of the date set by the court for the meeting of your creditors, and the deadlines for your creditors to object to your case and file their claims against you.
Approximately 30 Days After Your Case is Filed
Within 30 days after you file your case, or before the meeting of your creditors if that occurs first, you are required to file a Statement of Intention. In this document, you advise the court whether you intend to keep your property that serves as collateral for your debts, or whether you intend to surrender it to your creditors. Again, our firm will file this form for you.
If you intend to keep the property, you must indicate your intention to: (1) reaffirm your debts and continue making all of your payments on those debts; or (2) redeem the property by paying the fair market value for it, in which case you will receive a discharge of debt owed over the fair market value of the item.
45 Days After Your Statement of Intention is Filed
You have 45 days after your Statement of Intention is filed to surrender or keep your property as you indicated in your Statement and make all necessary payments.
Approximately 6 Weeks After Your Case is Filed
The court will hold the Meeting of Your Creditors about six weeks after your bankruptcy case is filed. At least seven days before this meeting, you are required to provide to the trustee and any creditor requesting it, a copy of your most recently filed tax return. We will do this for you!
The court-appointed trustee will preside over this meeting. At the meeting, which you are required to attend, you will be asked to testify under oath as to the accuracy of the statements in your petition. However, most of your creditors will not appear at the meeting, and you will not be before a judge. The meeting is very informal, and in most cases will last no more than 10 minutes. If you do not attend the meeting, your case will be dismissed.
Within 45 days after you file your petition, you must file a statement containing a certificate from your attorney that you received an explanation of the various chapters available to you under the bankruptcy code, evidence of any payments you’ve received from any employer within 60 days of your filing, an itemized statement of your monthly income, and an estimate of any increase in income or expenditures you expect over the next 12 months.
30 Days After the Meeting of Your Creditors
The bankruptcy trustee and your creditors have to object to all of your exemption claims within 30 days after the conclusion of the meeting of your creditors.
60 Days After the Meeting of Your Creditors
Your creditors have 60 days after the date first set for the Meeting of Your Creditors to object to the discharge of any of the debts listed in your petition and schedules.
Your creditors can object to your request to discharge a debt if the debt was obtained or incurred as a result of any of the following types of misconduct: fraud; embezzlement or larceny; and any willful or malicious injuries you have caused others; or a divorce or separation (this does not include debts for child support and spousal maintenance, which are nondischargeable by law).
Additionally, your creditors can object to the discharge of all your debts if you have engaged in any of the following conduct: concealment or destruction of property or financial records; false statements; withholding information; failing to explain losses; failure to respond to material questions; or a discharge in a prior case.
The trustee must move to dismiss your case within this time period if he finds that the granting of relief would be an abuse of the provisions of Chapter 7. You will receive your Chapter 7 discharge 60 days after the meeting of your creditors You will receive your discharge as soon as the 60-day time period for objecting to discharge or moving to dismiss your case expires. Even if you receive your discharge, the trustee may, however, move to set it aside if you do not turn over nonexempt property or if you commit other bankruptcy violations.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 imposes one last hurdle before you’re eligible for your discharge–the financial education requirement. This requires you to complete an instructional course concerning personal financial management. Your attorney can refer you to an approved financial management class.
90 Days After the Meeting of Your Creditors
If you have an asset case which you most likely will not have, all of your creditors (except for government entities) must file their proofs of claim (these are documents your creditors submit to the court specifying how much you owe them) within 90 days after the first date set for your creditor meeting if they wish to share in the payments from your case if any assets are available for liquidation.
If your case was a no asset case and there were no objections filed by the trustee and/or your creditors, your case will be discharged and closed out.
Finally, you should order copies of your credit reports from all three credit-reporting agencies to make sure that all of the debts you intended to discharge are zeroed out on your credit report with a notation that the debt was included in your bankruptcy.

Read more @ Heuser Law Office

Contact Louisville Bankruptcy Clinic: Contact Us

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com
vheuser@heuserlawoffice.com

The ability to file for bankruptcy is dependent on the chosen type of bankruptcy. You can file a Chapter 7 once every eight years, starting from the filing date, not discharge. You can file for Chapter 13 after successfully completing a Chapter 7 case. However, if you file within four years of the Chapter 7 filing, you will not receive a discharge at the end of the case. If the previous Chapter 13 case resulted in creditors receiving less than 70 percent of their claims, you have to wait six years before filing for Chapter 7. Upon completion of a Chapter 13 case, you can file for another Chapter 13 bankruptcy at any time, except if the previous case lasted less than two years. In that situation, you must wait until the two-year mark is reached before filing again.

If your bankruptcy was denied:

Carefully read through the denial notice to understand the specific reasons for the denial. This information will help you determine your next course of action.

Consult with an attorney who can review your case and provide guidance on the best way forward. They may be able to identify any errors or issues that can be addressed to increase your chances of a successful bankruptcy filing.

If you believe there were errors or misunderstandings leading to the denial, you can dispute it. This usually involves filing an appeal with the bankruptcy court within a specific time frame. An attorney can assist you with this process.

You can also explore alternative debt relief options such as debt consolidation, settlement negotiations with creditors, or working out a repayment plan. An attorney or a reputable credit counseling agency can help you understand and evaluate these alternatives.

Take steps to improve your financial situation by managing your debts, cutting unnecessary expenses, and increasing your income. This will help you regain control of your finances and potentially put you in a better position for future bankruptcy filings, if necessary.

Remember, bankruptcy denial is not the end of the road, and there are often alternative paths to finding relief from overwhelming debt. Engaging with a qualified attorney or debt counselor can help you navigate through the process and find the best solution for your situation.

Read more @ Heuser Law Office

Contact Louisville Bankruptcy Clinic: Contact Us

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com
vheuser@heuserlawoffice.com

Before filing for bankruptcy you may want to consider alternatives. Consulting with a lawyer is recommended in order to avoid overlooking important details and to ensure things are done the correct way.

Some alternatives may be:
Negotiate with creditors: Open communication with your creditors and negotiate to lower interest rates, extend payment terms, or create a repayment plan that fits your financial situation.

Debt consolidation: Consolidate your debts into one loan with a lower interest rate. This can help simplify your payments and potentially save you money in the long run.

Debt settlement: Work with a debt settlement company or negotiate directly with your creditors to settle your debts for less than the full amount owed. This can help reduce your overall debt burden.

Credit counseling: Seek the assistance of a non-profit credit counseling agency. They can provide you with financial education, create a budget, and help develop a debt management plan.

Debt management plan: Enroll in a debt management plan offered by a credit counseling agency. They will negotiate with your creditors to lower interest rates and potentially waive fees, allowing you to repay your debts over a set period of time.

Liquidate assets: Consider selling non-essential assets to generate funds to pay off your debts. This can help you avoid bankruptcy by using the proceeds to settle your outstanding obligations.

Loan restructuring: Contact your lenders and inquire about the possibility of restructuring your loans. They may be willing to modify the terms of your loans to make payments more manageable.

Earn additional income: Increasing your income through additional work or a side business can help you tackle your debts more effectively.

Budgeting and reducing expenses: Take a hard look at your expenses and identify where you can cut back. Develop a strict budget to allocate your income towards paying off debts.

Legal options: Consult with an attorney who specializes in debt law to explore any potential legal alternatives to bankruptcy that may be available to you.

It’s important to remember that the best alternative to bankruptcy may vary depending on your specific financial situation. Consulting with an attorney to evaluate your options can provide valuable guidance.

Learn about the reasons you may want a Bankruptcy Lawyer

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com

Has the Panicdemic got your business shut down? Don’t forget that some commercial insurance covers business interruption and some policies may not be limited to physical damage causes. Read your business insurance policy carefully!

For advice or help reading your policy visit:

Heuser Law Office

Hirsh and Heuser Attorneys

Louisville Law Clinic

Louisville Business Clinic

Or contact us to discuss bankruptcy options.

in March (2020), a Bankruptcy Court in Michigan allowed a debtor, who had filed for bankruptcy before the Small Business Reorganization Act of 2019 (SBRA) amendments, to proceed under Subchapter V of chapter 11. The judge’s opinion joins a growing set of decisions that hold that cases that are already proceeding in a “traditional” chapter 11 may elect to switch and proceed under the SBRA instead.

Vincent F. Heuser, Jr.
Hirsh and Heuser Attorneys
3600 Goldsmith Lane
Louisville, KY 40220
(502) 458-5879
http://www.hirshandheuser.com

*DRAFT*
Small Business Reorganization Act
Subchapter V of Chapter 11 Amendments
For a period of one year from February, 2020, the CARES Act allows more small businesses to qualify as a debtor under the small business reorganization provisions of chapter 11 recently added by the SBRA.
The Bankruptcy Code provides special rules and procedures for “small business debtors.” See 11 U.S.C. §101(51D). Congress recently found that “small business chapter 11 cases continue to encounter difficulty in successfully reorganizing.” H.R. Rep. No. 116-171, at 4 (2019). Because of this, Congress enacted the SBRA (11 U.S.C. §1181 et seq.), which was signed by President Trump in August 2019 and became effective on February 19, 2020. The goal is to streamline small business bankruptcies, establish an expedited schedule for reorganization, reduce legal expenses, and provide more debtor friendly plan requirements and confirmation standards.
Previously, to qualify as a “small business debtor,” a business must have had non-contingent, liquidated debts (secured and unsecured) totaling not more than $2,725,625. (11 U.S.C. § 1182(1) and 11 U.S.C. §101(51D). The CARES Act modifies the SBRA by raising the threshold to $7.5 million in debts, excluding insider and affiliate debt, but this section has a sunset provision such that one year from enactment, the amendment expires and the $2,725,625 threshold is reinstated. No affiliate of a public company is eligible pursuant to amended SBRA.
Struggling businesses may want to file for Chapter 11 now to take advantage of the SBRA’s more friendly procedures. Some of the key provisions include:
• The United States Trustee will be required to appoint a trustee in every small business chapter 11 case. The trustee will have a role in assisting the debtor in developing a plan of reorganization, and will be responsible for disbursing payments under a plan. However, the trustee will serve in a mostly supervisory role and will not generally be involved in any operational aspects of the business. See 11 U.S.C. §§ 1183-1184. In this sense, the SBRA preserves the notion of a “debtor in possession” in small business cases.
• An unsecured creditors’ committee will not be appointed unless ordered by the court for cause. See 11 U.S.C. § 1102(a)(3).
• A status conference must be held within 60 days of the date of the petition to determine how best to proceed with the case. The date of the status conference may be extended if cause is demonstrated. See 11 U.S.C. § 1188(a).
• A plan of reorganization must be filed within 90 days of the petition date, although the court can extend the deadline if circumstances outside the control of the debtor merit an extension. Only a debtor may file a plan, and no disclosure statement is required. However, a plan must contain some information, such as a liquidation analysis and a projection of a debtor’s ability to make payments under the plan, traditionally associated with a disclosure statement. See 11 U.S.C. § 1189.
• A plan may modify the rights of a secured lender with a lien on the principal residence of the debtor if the “new value” received from the loan was not used primarily to acquire the residence and was used primarily in connection with the small business. See 11 U.S.C. § 1190. Modification of such a loan is otherwise prohibited in chapter 11 cases. See 11 U.S.C. § 1123(b)(5).
• The SBRA makes it easier for a debtor to confirm a plan and maintain ownership of its business. In a typical chapter 11 case, the “absolute priority rule” ensures that owners cannot retain equity in a business unless creditors are paid in full by the chapter 11 plan. The SBRA abrogates this rule and provides that existing owners of a business may retain their full ownership without providing any “new value,” but only if the plan provides for the debtor to distribute all of its projected disposable income over at least three years and no more than five from the date the first payment is due under the plan. See 11 U.S.C. § 1191.
• In a regular Chapter 11, the debtor must pay admin expense claims on the effective date of the plan. Under the SBRA, a small business debtor may stretch payment of administrative expense claims out over the term of the plan. See 11 U.S.C. § 1191(e).
• Under the SBRA, a discharge is not granted until the debtor completes all payments due within the first three years of the plan or a longer period not to exceed five years as the court determines. The discharge applies to all debts addressed by the plan except for debts on which the last payment is due after the term of the plan or which are non-dischargeable. See 11 U.S.C. § 1192.

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com

*DRAFT*
Filing bankruptcy doesn’t necessarily mean curtains for a company. Chapter 11 bankruptcy allows companies to revamp in order to again become successful. With the right restructuring strategy, companies can overcome and re-emerged from bankruptcy more profitable than they ever were before.

2001 – Imperial Sugar

2005 – Delta Air Lines

2009 – Six Flags

2009 – General Motors

2011 – American Airlines

2012 – Hostess

2012 – Kodak

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com

*DRAFT*
bankruptcy doesn’t have to mean the end of your business. if you file a chapter 11 you can reorganize and get back on your feet. just be sure to remember a few simple rules and you will be recovered in no time.

1. Keep everything honest don’t hide assets.
2. Don’t be discouraged by any past failures learn from your mistakes
3. Take advantage of local resources look to the local chambers of commerce to learn about programs
4. Preparation make sure you have a business plan early on
5. your employees are critical assets take care of your employees and they will take care of your customers
6. Persevere solve problems don’t quit
7. Keep your business affairs separate from your personal life
8. make good use of experienced legal professionals and CPA’s.

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com

*DRAFT*
This is how it works, folks.

When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.

In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company.

In Chapter 11, in most instances the debtor remains in control of its business operations as a “debtor in possession”, and is subject to the oversight and jurisdiction of the court.

A Chapter 11 bankruptcy will result in one of three outcomes for the debtor: reorganization, conversion to Chapter 7 bankruptcy, or dismissal. In order for a chapter 11 debtor to reorganize, the debtor must file (and the court must confirm) a plan of reorganization. In effect, the plan is a compromise between the major stakeholders in the case, including the debtor and its creditors. Most chapter 11 cases aim to confirm a plan, but that may not always be possible.

If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. Section 1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to confirming or approving the plan and making it binding on all parties in the case, most notably that the plan complies with applicable law and was proposed in good faith. The court must also find that the reorganization plan is feasible in that, unless the plan provides otherwise, the plan is not likely to be followed by further reorganization or liquidation.

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com