petition 4
The filing of your bankruptcy papers operate to automatically stop any collection efforts once the creditor is notified. Most legitimate creditors know about this and will respect that legal
requirement. It usually takes about 30 days for a creditor to get officially notified. Occasionally, however, some creditors may not get the word or may just try to muscle their way in for more money than they are allowed to receive or continue to try and collect on the debt. If you are contacted, first check to be sure that creditor has been listed on your bankruptcy papers. If they weren’t listed, see your attorney about adding them to your bankruptcy. If they were listed, still contact your attorney.
REMEMBER: You do not have to discuss the matter with a creditor who might contact you even after they were listed. Maybe they just don’t know about it yet. It is best to simply tell them you are in Chapter 7 or 13, give them your case number and attorney’s name. Then politely tell them not to call you again. If they persist, tell them they are in violation of a court order and you want them to stop. Be sure to keep a record and forward it to your attorney.

(posted 5 hours 24 min ago)

Today-In-Bankruptcy (1)Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for April 24th, 2014 Gherkin tower on way out of bankruptcy pickle Top L.A. bankruptcy law firm to close doors Debt Settlement vs. Bankruptcy: Which is Worse for Credit Score?

(posted 5 hours 49 min ago)

20-dollar-billThe answer depends on which chapter you file. Chapter 13 bankruptcy is court-approved repayment plan that helps debtors make affordable payments on debt obligations. Chapter 7 bankruptcy can eliminate qualifying debts through a discharge approved by the court. Once you have a better idea where you stand with your finances and how you qualify for […]

(posted 5 hours 49 min ago)
Lisa Price, founder and CEO of Carol’s Daughter, speaking at an Urban League luncheon last month.
Associated Press

Companies affiliated with beauty brand Carol’s Daughter filed for Chapter 11 bankruptcy protection Thursday.
CD Stores LLC, formerly known as Carol’s Daughter Stores LLC, filed its Chapter 11 petition with the Manhattan bankruptcy court. Court papers show that CD Stores is 100% owned by Carol’s Daughter Holdings LLC. And the petition, which reported assets and debts each in the $1 million to $10 million range, was signed by Carol’s Daughter Chief Financial Officer John D. Elmer.
A Carol’s Daughter representative and the company’s bankruptcy attorney couldn’t immediately be reached for comment Thursday afternoon. Bankruptcy Beat
(posted 6 hours 30 min ago)

There are specific time restrictions on when you can file certain bankruptcy cases.  For Chapter 7, you can only receive a discharge of certain debts every eight years.  There are also complex rules for filing Chapter 13 subsequently to a Chapter 7.  In the video below, we talk about Chapter 7 in particular and how+ Read MoreThe post How Often Can You File Chapter 7 Bankruptcy? appeared first on David M. Siegel.

(posted 7 hours 51 min ago)
Wilmington Hammerheads defenseman Dylan Riley, right, battles for possession with Pittsburgh Riverhounds midfielder Matthew Kassal, left, at Legion Stadium in Wilmington, N.C., in April 2012.
Matt Born/Associated Press

A Pittsburgh-area man who owns a piece of the Pittsburgh Riverhounds soccer team says majority owner Terrance “Tuffy” Shallenberger Jr. broke his promise to help the team pay off the debt on its overbudget Highmark Stadium.
In court papers, minority owner David Wilke accused Mr. Shallenberger of failing to pursue a $4.6 million loan—a promise that he allegedly made when he bought a 51% ownership stake in the team last year. Bankruptcy Beat
(posted 8 hours 2 min ago)

Captcha FakeIf you are a long-time reader of Credit Slips, first thank you. Second, you probably noticed we were off the air earlier in the week. Our blog hosting service, Typepad, was the victim of a criminal denial-of-service attack. According to TechCrunch, Typepad even received a ransom note offering to stop the attacks if payment was received. Although it was frustrating to be down for such an extended period, Typepad did a great job of keeping its customers informed about the situation, and I wish them the best as they recover from this attack.

Credit Slips
(posted 8 hours 42 min ago)

Investors who bought several restaurants that fueled the dining boom in Washington, D.C.’s Capitol Hill neighborhood are accusing the D.C. restaurateur who sold the eateries of sabotaging the restaurants in a scheme to take them back. And they want their scooter back, too.
Lawyers for eight restaurants including Hawk ‘n’ Dove, Molly Malone’s and Boxcar Tavern said in new court papers that Xavier Cervera, who became a consultant for the restaurants in August after selling the restaurants in late 2012, intentionally hindered their performance. The investors didn’t specify how Mr. Cervera was able to set the restaurants on a downward spiral.
What was his motive? Court papers say with less money flowing into the restaurants, the new owners would struggle to make payments to Mr. Cervera and the other sellers—former Chief Financial Officer Andrea Gentile and a Florida investor named William Sport—who had agreed to be paid over time and are still owed more than $9 million.
“If a payment [to the sellers was skipped], it would have enabled the sellers to retake” the restaurants, the investors’ bankruptcy lawyers explained in documents filed in U.S. Bankruptcy Court in Washington, D.C.
In an emailed statement, Mr. Cervera denied that he had “financial control” over any of the restaurants after he sold them. Bankruptcy Beat
(posted 9 hours 13 min ago)

“So make your life a little easier; When you get the chance, just take; Control”
– Janet Jackson
We know that a corporate parent cannot use its control over its subsidiary to deplete it of value and render the entity insolvent.  Veil-piercing and claims to recover fraudulent transfers or for breach of fiduciary duty (among others) can remedy such wrongful acts.  But can a subsidiary corporation wrongfully manipulate its parent?  If so, what is the remedy?
In Burtch v. Owlstone, Inc. (In re Advance Nanotech, Inc.), the United States Bankruptcy Court for the District of Delaware concluded that yes, children can control their parents, and yes, they can owe “upstream” fiduciary duties to their shareholders.  Consequently, the parties controlling a transaction should take particular care in ensuring that they are aware to whom exactly they owe their duties and that the various parties to any transaction are all at appropriate arm’s length.

(posted 9 hours 22 min ago)

Officials in charge of liquidating a pair of failed Irish banks are asking a U.S. bankruptcy judge to sign off on sales involving about EUR15 billion ($20.72 billion) in soured loans, as Ireland continues to dig out from the wreckage of its collapsed property market. The Wall Street Journal has the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
A federal bankruptcy watchdog overseeing TelexFree LLC’s Chapter 11 case found compelling evidence of fraud, dishonesty and gross mismanagement and asked a judge to order the appointment of a trustee to take control of the company. Read the Daily Bankruptcy Review article via WSJ.
The Tokyo District Court ordered bitcoin exchange Mt. Gox to start liquidating, Reuters reports. Bankruptcy Beat
(posted 10 hours 42 min ago)