Senator Warren and Congressman Nadler have introduced the Consumer Bankruptcy Reform Act designed to be the biggest change to the U.S. Bankruptcy Code since the Bankruptcy Abuse Prevent and Consumer Protection Act of 2005. It has not yet passed to any committee for review and is unlikely to be enacted into law as now written.
Primarily, the CBRA would abolish the existing regime for consumer bankruptcies under Chapter 13 and create a new Chapter 10 for individual and small business bankruptcies that will operate somewhat similarly to a Chapter 11 reorganization including a repayment plan to be approved by the Bankruptcy Court.
The CBRA would create a homestead exemption in bankruptcy that would be equal to 50% of the value of the conforming loan limit (as determined by Fannie Mae and Freddy Mac) of a single-family residence within the particular county of the debtor’s residence, or 75% if the debtor is age 65 or older. This would be a very substantial change for folks living in states with minimal or smallish homestead exemptions. It will also do away with the Means Test and eliminate some of the paperwork now required to file. We will keep you informed of its potential progress though congress.
This year, Neiman Marcus and J.C. Penney joined the ranks of some of the biggest retail bankruptcies on record, including Sears, Toys R Us and Circuit City.
Neiman Marcus, J.C. Penney, Ascena Retail Group and Tailored Brands have now joined the ranks of some of the all-time biggest retail bankruptcies on record — including Sears, Toys R Us and Circuit City.
Below are the 10 biggest retail bankruptcies of 2020, listed by asset sizes and liabilities at the time of their filings. The list was compiled using data from court filings, S&P Global Market Intelligence and BDO. (CNBC Dec. 26, 2020)
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If you are even considering declaring bankruptcy, then you are probably not in a very good place, financially speaking. Despite this, you may be dreading declaring bankruptcy because of the negative connotations that bankruptcy has. However, you should not be afraid of bankruptcy, because it can have many positive benefits for your financial future.
Continue reading “Five Ways Bankruptcy Can Improve Your Financial Future”
The number of large businesses that have gone bankrupt in 2020 has increased by 84% compared to the same time period in 2019, according to a recent study. This increase in the number of big business bankruptcies is blamed largely on economic disruptions caused by the coronavirus pandemic. This trend goes to show that even very successful companies can still be at serious financial risk when unforeseen circumstances arise.
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If you are dealing with financial troubles and struggling to keep up with overwhelming debt, bankruptcy may seem like an appealing option to you. After all, bankruptcy can allow you to get rid of most or all of your debt, and protect you from foreclosure or eviction from your home. However, bankruptcy is not something to be undertaken lightly, and it can be more beneficial for some than others.
Continue reading “Five Things to Consider Before Seeking Bankruptcy”