Legal Articles, Workout
As of January 1, 2019, California Provided You the Homeowner More Rights to Avoid Foreclosure
Beginning January 1, 2019, additional protections were added under the Homeowner Bill of Rights, giving borrowers and homeowners added rights and protections to allow additional workout options to save their homes from foreclosure.
Means Test in chapter 13 and interest to unsecured creditors
The 2005 Bankruptcy Abuse and Consumer Protection Act added a new budget test, called the means test, to determine whether debtors can file chapter 7, and if they file chapter 13, how much needs to be paid to unsecured creditors. One ancillary issue arising from this test is whether interest needs to be paid to unsecured creditors when debtors are paying unsecured creditors in full during the plan but not paying the full amount shown as available in the means test. Courts give conflicting answers on this. One recent decision ruled no interest is required.
Things Not to Say During Debt Negotiations
There are certain things that should never be said during debt negotiations. These “banned phrases” are bad because they put you in a position of weakness during the negotiations or may cause you to give up certain rights. Some of the more egregious “banned phrases” include:
Getting Skin in the Game: How to Provide Stock Compensation to Employees
Providing common stock to employees is likely to raise their loyalty to the company because, as a stockholder, they have skin in the game and should want to see the company succeed and their investment grow.
All Debt is Not Created Equal
When filing for bankruptcy protection, not all debt is created equally. Regardless of whether you are filing under chapter 7 or chapter 13 of the bankruptcy code, whether a debt is secured or unsecured makes a huge difference in how that debt is treated by the bankruptcy court.
Bankruptcy vs Debt Settlement
Sometimes bankruptcy is the best course of action and other times debt settlement may be a better solution. Below is a basic comparison of Chapter 7 and Chapter 13 bankruptcy and debt settlement.
Drafting Workout Agreements
Workout agreements have to address a number of bankruptcy and foreclosure issues, as well as transactional ones. Many workout agreements don't address all of the consequences of what liabilities and procedures apply if the workout fails.
BANKRUPTCY MAY ASSIST IN FINANCIAL STRESS
Bankruptcy is an option for some people who are overwhelmed by their debt. At times, stress is caused from debt related issues. This stress can lead to illness, loss of employment or even divorces.
