In bankruptcy cases, it is not uncommon for the debtor and the trustee to propose a compromise to the bankruptcy court. The court will generally review a proposed compromise to determine if it is fair and equitable, in consideration of numerous factors, as discussed in a recent California case. If…
In Chapter 11 bankruptcy cases, trustees are typically entitled to receive compensation for their services, which is subject to approval by the bankruptcy court. These fees can vary but are typically determined based on the complexity of the case and the extent of the trustee’s responsibilities. To ensure fairness and…
Generally, the bankruptcy courts have jurisdiction over bankruptcy matters and claims arising in bankruptcy actions. Certain bankruptcy-related actions and claims filed in bankruptcy courts are better handled by other courts, however; as such, in some instances, a bankruptcy court will refer a matter to a state or federal court. If…
Bankruptcy courts are courts of limited jurisdiction; generally, they only handle bankruptcy matters. While they can exercise jurisdiction over other claims, their authority is limited to claims that are related to or arise under or in bankruptcy. Thus, if a party attempts to bring a claim before a bankruptcy court…
People seeking debt relief via bankruptcy actions must file legal pleadings with the court and verify that the information contained in those pleadings is accurate. If they take a certain position in a bankruptcy action, they cannot, at a later date, take a contrary position to suit their changed needs.…
In bankruptcy actions, debtors are typically protected from claims from creditors. The bankruptcy code only protects debtors from personal liability, however, not claims to property interests in a partnership, as demonstrated in a recent California ruling issued in a bankruptcy case. If you need assistance managing your debts, it is…
Generally, bankruptcy allows for the discharge of debts. There are some exceptions to the general rule, however. For example, any debt obtained via fraud or false representations is not dischargeable. While it is obvious that people could not discharge debts incurred due to their own fraud, it was not clear…
Bankruptcy actions generally offer people relief from significant financial burdens, as most debts are discharged in bankruptcy. There are exceptions to the general discharge rule, however. For example, claims arising out of willful misconduct, such as fraud or intentional injury, will often be deemed non-dischargeable. Recently, a California court analyzed…
In bankruptcy actions, the courts aim not only to help debtors alleviate their overall debt load but also to protect the interests of the debtor’s creditors. Among other things, this means that creditor claims in bankruptcy actions are essentially ranked by priority, with some claims being subordinated to others. In…
One of the many benefits of filing a bankruptcy action is that it automatically stays any parties from pursuing civil claims against the debtor. Generally, a stay will last for the duration of the bankruptcy case. In some instances, though, the stay will expire after a much shorter time period.…