While the use of an Interim Receiver is not seen often when dealing with consumer bankruptcies and proposals, the Interim Receiver can play a very important role when dealing with commercial situations. There are four times that you can see this type of appointment:
1. After the filing of a Notice of Intention to Enforce Security but before the mandatory 10 day waiting period has expired;
2. After the filing of a Notice of Intention to File a Proposal but before the proposal is approved by court;
3. After the filing of a Proposal but before the proposal is approved by court; and
4. After a creditor has filed Petition with court for the court to grant a receiving order and place a debtor into bankruptcy but prior to the approval of this order.
The purpose of the appointment of an Interim Receiver in these situations is largely to play a protective role. In fact, the only way this type of appointment will be considered is if it can clearly be demonstrated to the court that the Interim receiver is necessary to protect the estate of the debtor or the interests of the creditors (either generally or of the creditor requesting the appointment).
Once appointment there are a number of powers that can be utilized by the Interim Receiver, but ultimately the use of these powers must come directly from court. As it is the court that makes the appointment, the Interim Receiver is an Officer of the Court and must look to the court for its directions. The most common role played by the Interim Receiver is that of a monitor, they simply monitor the affairs of the debtor until such time as the court has approved the pending action. However, there are a number of additional actions that an Interim Receiver may take, most commonly, upon the direction of the court the Interim Receiver can take conservatory measures for the protection of estate assets. Additionally, because the Interim Receiver takes direction from the court it can be empowered to take any action the court views as necessary, including the supervision of or May exercise such care/control over any of the business affairs of the debtor that the court directs.
There are many advantages associated with the appointment of an Interim Receiver. The most important of which are as follows:
1. Provides for protection of estate assets;
2. Permits for conservatory measures to be taken;
3. Allows for the protection of creditors interests;
4. Court can have the Interim Receiver report on companies financial position;
5. Can be used as a mechanism to meet creditors demands through obtaining court orders directing the actions of the Interim Receiver;
6. Provides the creditors with greater assurance the assets are safe;
7. Can open up new avenues of financing as now opens the possibility of lending monies and granting security with priority of the other secured creditors; and
8. Debtor cooperation with this appointment can be viewed as a demonstration of good faith by the creditors.
While there are clearly a number of advantages associated with the appointment of an Interim Receiver there are also some risks, the primary risk being liability of the requesting party. If the order in question is not ratified by the courts there is potential liability associated with this type of process. As well, the appointment of an Interim Receiver can have substantial costs associated with it. As a result there are a number of crucial things to be considered prior to making the court application requesting this type of appointment. The issues to consider are as follows:
1. Is the value of the assets sufficient to merit the extra cost;
2. Do the day to day transactions involve large sums of money;
3. Is the inventory susceptible to theft;
4. Does the debtor have a history of questionable acts;
5. Is the debtor likely to oppose the appointment of the Interim Receiver;
6. Is there strong proof of insolvency;
7. Is the security valid and enforceable (where applicable)?
As you can see the issue of whether or not to appoint an Interim Receiver is not a simple one and not a decision that should be taken lightly. If you are considering requesting this type of appointment you would be best advised to discuss much of the content of this article with legal counsel prior to embarking on a course of action now, only to find out an Interim Receiver was not beneficial in your situation. Additionally, if you should require any additional information concerning the role, rights or responsibilities of an Interim Receiver feel free to contact me through either my Edmonton bankruptcy or Alberta bankruptcy sites or simply by calling me directly at (780) 435-5110.
Barton K. Goth is a senior advisor with Goth & Company Inc. – Trustee in Bankruptcy and publiser of the Edmonton Bankruptcy Article Series. Goth & Company Inc. is an Edmonton based firm licensed by the Federal Government and committed to helping people find solutions to financial difficulties. If you require more information bankruptcy or the various alternatives you can visit Goth & Company Inc. at their www.bankruptcy-edmonton.com/, post a question on their Edmonton Blog, or you can contact Goth & Company Inc. directly.
Article Source: http://EzineArticles.com/?expert=Barton_K._Goth
Saturday, August 4, 2007
Know Your Options For A Bankruptcy Alternative
Before taking a serious step toward filing bankruptcy, you may want to take a look at some bankruptcy alternatives. There are undoubtedly some difficult questions to be answered when a person is carrying a large amount of debt. It is only reasonable to seek some kind of relief to have better control over your finances again.
There are different options available for a person who is trying to find a bankruptcy alternative. There are, for example, debt settlement programs where a person can get help to manage their debt. Most debt settlement programs can help you to get debt free in three years, and some even less depending on your amount of debt. Since they are non-profit organizations, they can get a much lower interest rate for your credit card debts, which allows you to be able to pay them off much faster this way. There are many different debt settlement programs available and they have become increasingly popular.
Another bankruptcy alternative may be a loan consolidation. When taking out a consolidation loan, you are borrowing against your home equity or some kind of capital asset of value that you own. Depending on your personal situation, this may be your only option. For example, if you lost your job, you have experienced the death of a loved one, you went through a divorce, or you became disabled, this may be the only viable bankruptcy alternative for you.
On the other hand, if you continue to have the same household income and you are able to pay your monthly bills on time, you may not look at getting a loan consolidation. Remember, taking out a consolidation loan only makes your total monthly payments higher, and it may tempt you to keep spending more money again since you have paid off your high interest credit cards. You may find yourself in the same situation and worse. This is a real temptation with a debt consolidation loan that many people find it hard to resist.
A bankruptcy alternative is more likely the better choice when it comes to taking care of incurred debts. You need to know the pros and the cons of the various options available to you in order to find the best way out of debt. You need to have a clear picture of your personal situation and your personal spending habits. And if your personal spending habits do not align with your income level, you will undoubtedly need to change your personal spending habits.
With a debt settlement program, you can get rid of your credit card debt within only a couple of years. With a consolidation loan, you are working to get better control over your finances. These alternatives are better than having to file bankruptcy with the negative long term effects that bankruptcy offer. Filing bankruptcy will be recorded for ten years in your credit report and will adversely affect your credit rating and the opportunity for getting another loan when needed.
Remember, filing bankruptcy should be considered as your very last option, and only an option that you use after you have determined that you do not have a viable bankruptcy alternative. Sometimes bankruptcy is your best option, but often the alternatives provide a better solution for your financial problem.
For more insights and additional information about Bankruptcy Alternatives and a free consultation with a bankruptcy lawyer local to you, please visit our web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
There are different options available for a person who is trying to find a bankruptcy alternative. There are, for example, debt settlement programs where a person can get help to manage their debt. Most debt settlement programs can help you to get debt free in three years, and some even less depending on your amount of debt. Since they are non-profit organizations, they can get a much lower interest rate for your credit card debts, which allows you to be able to pay them off much faster this way. There are many different debt settlement programs available and they have become increasingly popular.
Another bankruptcy alternative may be a loan consolidation. When taking out a consolidation loan, you are borrowing against your home equity or some kind of capital asset of value that you own. Depending on your personal situation, this may be your only option. For example, if you lost your job, you have experienced the death of a loved one, you went through a divorce, or you became disabled, this may be the only viable bankruptcy alternative for you.
On the other hand, if you continue to have the same household income and you are able to pay your monthly bills on time, you may not look at getting a loan consolidation. Remember, taking out a consolidation loan only makes your total monthly payments higher, and it may tempt you to keep spending more money again since you have paid off your high interest credit cards. You may find yourself in the same situation and worse. This is a real temptation with a debt consolidation loan that many people find it hard to resist.
A bankruptcy alternative is more likely the better choice when it comes to taking care of incurred debts. You need to know the pros and the cons of the various options available to you in order to find the best way out of debt. You need to have a clear picture of your personal situation and your personal spending habits. And if your personal spending habits do not align with your income level, you will undoubtedly need to change your personal spending habits.
With a debt settlement program, you can get rid of your credit card debt within only a couple of years. With a consolidation loan, you are working to get better control over your finances. These alternatives are better than having to file bankruptcy with the negative long term effects that bankruptcy offer. Filing bankruptcy will be recorded for ten years in your credit report and will adversely affect your credit rating and the opportunity for getting another loan when needed.
Remember, filing bankruptcy should be considered as your very last option, and only an option that you use after you have determined that you do not have a viable bankruptcy alternative. Sometimes bankruptcy is your best option, but often the alternatives provide a better solution for your financial problem.
For more insights and additional information about Bankruptcy Alternatives and a free consultation with a bankruptcy lawyer local to you, please visit our web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
5 Types Of Bankruptcy Chapters
Currently bankruptcy has become more common and people are filing every minute. With the economy and job situation the way it is many are finding themselves in need of debt consolidation or bankruptcy. The types of bankruptcy talk about here are Chapters 7, 12, 13, 9 and 11. Knowing what each chapter is and what it means to you is very important in any situation.
Chapters 13 and 7 are meant for individuals. Chapter 9 pertains to towns and cities. Chapter 12 pertains to fishing and farming family businesses while chapter 11 is used by commercial businesses and is also known as reorganization of a business.
Chapter 7 is one of the types of bankruptcy that consists of the debtor selling most of his or her non-exempt assets to pay back creditors. You would have to check federal laws to find out what is non-exempt and what is not. The reason for filing a chapter 7 is to receive a discharge on your present debts. This is only granted if you follow the proper conduct of the bankruptcy codes. If you are found to have committed any misconduct, the court will deny the discharge. If you do receive a discharge, you may be responsible for many of the debts you have incurred. Some of things you will have to pay if the judge issues a discharge are:
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
If you file a chapter 13, you are required to have a repayment plan to pay your creditors back. This usually includes reductions that creditors give for paying. You have up to five years to pay the money to creditors. With a chapter 13, you cannot discharge debts for these things, which you can if you receive a full chapter 7 without any discharge.
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
* Child support and alimony
Anglers and farmers usually file under a chapter 12 as long as the business is family owned. They need to provide a list of creditors, assets along with liabilities and all documentation of their financial affairs. They are also given time to repay their obligations, although reduced quite a bit.
If you file for bankruptcy, you stand a good change of having better luck at getting credit, but at the same time, some creditors look at bankruptcy and will not give credit to the parties involved in the bankruptcy proceedings. It is a toss up if bankruptcy is good or bad for you; no one creditor has the same viewpoints on the subject.
You can also find more info on Bankruptcy Attorney and Bankruptcy Code. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Wade_Robins
Chapters 13 and 7 are meant for individuals. Chapter 9 pertains to towns and cities. Chapter 12 pertains to fishing and farming family businesses while chapter 11 is used by commercial businesses and is also known as reorganization of a business.
Chapter 7 is one of the types of bankruptcy that consists of the debtor selling most of his or her non-exempt assets to pay back creditors. You would have to check federal laws to find out what is non-exempt and what is not. The reason for filing a chapter 7 is to receive a discharge on your present debts. This is only granted if you follow the proper conduct of the bankruptcy codes. If you are found to have committed any misconduct, the court will deny the discharge. If you do receive a discharge, you may be responsible for many of the debts you have incurred. Some of things you will have to pay if the judge issues a discharge are:
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
If you file a chapter 13, you are required to have a repayment plan to pay your creditors back. This usually includes reductions that creditors give for paying. You have up to five years to pay the money to creditors. With a chapter 13, you cannot discharge debts for these things, which you can if you receive a full chapter 7 without any discharge.
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
* Child support and alimony
Anglers and farmers usually file under a chapter 12 as long as the business is family owned. They need to provide a list of creditors, assets along with liabilities and all documentation of their financial affairs. They are also given time to repay their obligations, although reduced quite a bit.
If you file for bankruptcy, you stand a good change of having better luck at getting credit, but at the same time, some creditors look at bankruptcy and will not give credit to the parties involved in the bankruptcy proceedings. It is a toss up if bankruptcy is good or bad for you; no one creditor has the same viewpoints on the subject.
You can also find more info on Bankruptcy Attorney and Bankruptcy Code. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Wade_Robins
Why Seniors Are Leading The Bankruptcy Charge
Across the country, senior citizens are starting to follow what is becoming a national trend by filing bankruptcy. Filing bankruptcy by seniors and retirees is approaching an all time high, according to the results of multiple studies and research.
The reason for this is that the economy is not particularly good right now, and seniors are the typical people living on a fixed income. As inflation occurs year after year, the amount of that fixed income does not keep pace with the rate of inflation. To compound this problem, health care costs have gone through the roof, and some pension plans have begun to put caps on the health care coverage of retired employees, and some companies have tried to cut that benefit out totally.
Senior Americans, more now than ever, are becoming increasingly overwhelmed by debt and financial obligations. One of the sad observations that comes as a result of this is noting that after being a part of the labor force for 30, 40 years or more, now is the time when the seniors should be able to kick back and enjoy life, but for many, that is not the reality they are facing. One estimate indicates that people age 55 and over account for about 22% of those filing for bankruptcy.
There are many reasons that seniors are facing this problem, and many of these things are not relegated to seniors. There is the skyrocketing cost of health care which also includes prescription drugs, and unfortunately, these become used more and more as people advance in years. Other necessities such as food, clothing are done on credit cards. A desire to help their children who may be struggling financially also plays a factor. Another large factor is unrealistic expectations of what income their pensions will provide, the benefits (or lack thereof) that their pensions include, and the extent to which Social Security plays a minor role in their income.
One way that many seniors have found temporary relief from this problem is to accept the offers of a credit card that seem to arrive by the truckload in every day's mail. Out of necessity, they get the credit cards, charge them to the hilt, and then when in the same situation next month, the process is repeated until it becomes a house of cards, which falls loudly. They are as helpless as anyone else as they see their savings erode even more quickly with the high interest rates charged by many of these credit cards.
One of the problems reported by bankruptcy lawyers in various cities is that in consulting with seniors about the financial problem, very few of them were willing to bring the problem out early, where bankruptcy alternatives could have played a role. It seems to be an attitude with this age group, where they would rather suffer than be embarrassed and swallow their pride.
The one thing that most people who are considering bankruptcy are not aware of, and this is particularly true of seniors, is that more often than not, they are not aware of bankruptcy alternatives. Bankruptcy should always be your very last resort, with all viable options thoroughly investigated prior to filing. A good bankruptcy lawyer will help with that.
To get more insights and a free bankruptcy evaluation from an bankruptcy lawyer who is local to you and familiar with the laws in your state, please visit our Bankruptcy Information web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
The reason for this is that the economy is not particularly good right now, and seniors are the typical people living on a fixed income. As inflation occurs year after year, the amount of that fixed income does not keep pace with the rate of inflation. To compound this problem, health care costs have gone through the roof, and some pension plans have begun to put caps on the health care coverage of retired employees, and some companies have tried to cut that benefit out totally.
Senior Americans, more now than ever, are becoming increasingly overwhelmed by debt and financial obligations. One of the sad observations that comes as a result of this is noting that after being a part of the labor force for 30, 40 years or more, now is the time when the seniors should be able to kick back and enjoy life, but for many, that is not the reality they are facing. One estimate indicates that people age 55 and over account for about 22% of those filing for bankruptcy.
There are many reasons that seniors are facing this problem, and many of these things are not relegated to seniors. There is the skyrocketing cost of health care which also includes prescription drugs, and unfortunately, these become used more and more as people advance in years. Other necessities such as food, clothing are done on credit cards. A desire to help their children who may be struggling financially also plays a factor. Another large factor is unrealistic expectations of what income their pensions will provide, the benefits (or lack thereof) that their pensions include, and the extent to which Social Security plays a minor role in their income.
One way that many seniors have found temporary relief from this problem is to accept the offers of a credit card that seem to arrive by the truckload in every day's mail. Out of necessity, they get the credit cards, charge them to the hilt, and then when in the same situation next month, the process is repeated until it becomes a house of cards, which falls loudly. They are as helpless as anyone else as they see their savings erode even more quickly with the high interest rates charged by many of these credit cards.
One of the problems reported by bankruptcy lawyers in various cities is that in consulting with seniors about the financial problem, very few of them were willing to bring the problem out early, where bankruptcy alternatives could have played a role. It seems to be an attitude with this age group, where they would rather suffer than be embarrassed and swallow their pride.
The one thing that most people who are considering bankruptcy are not aware of, and this is particularly true of seniors, is that more often than not, they are not aware of bankruptcy alternatives. Bankruptcy should always be your very last resort, with all viable options thoroughly investigated prior to filing. A good bankruptcy lawyer will help with that.
To get more insights and a free bankruptcy evaluation from an bankruptcy lawyer who is local to you and familiar with the laws in your state, please visit our Bankruptcy Information web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
Don't Attempt Bankruptcy Without Knowing Bankruptcy Law
If you think that you have nothing now, the new bankruptcy laws could even shrink that! The new bankruptcy law overhauls the laws that were modified in 1978. It not only tightens the requirements for those who want to file for bankruptcy but for their attorneys as well.
These are several of the major changes that were initiated under the new bankruptcy law:
* “Means Test” – You now have to show that you are not abusing the use of bankruptcy. This test calculates what you make per month minus certain expenses that are allowed. The “median income” will vary from state to state. If you fail the “means test’, then you must file for Chapter 13 bankruptcy.
* Expense allowances – Guidelines are put forth by the IRS for allowable expenses, and they are stingy. The food allowance is approximately $200 a month, and the housing allowance is approximate $800 a month.
* Residency requirements – There are state and federal bankruptcy laws, and some state laws are more lenient than others. Texas and Florida have very generous “homestead allowances”. The new bankruptcy law discourages you to look around for the best deal. You are not permitted to file for bankruptcy in a more favorable state unless you have resided there for a minimum of two years.
* Mandatory credit counseling – Another change that came with the new bankruptcy law is that you have to take a credit counseling course that has been approved within 180 days of filing for bankruptcy. Sorry to say, this is not a free course. The cost of this course is approximately $75.00.
* More paperwork – In order to prove that bankruptcy is necessary, the consumer will have to present much more documentation. Such things a debtor must provide are: a list of all unsecured and secured creditors, proof of taking the credit counseling course, a detailed list of one’s expenses and monthly income, liabilities and assets, the most recent tax return, photo ID and pay stubs.
* Hefty legal fees – A bankruptcy attorney must now “certify” that their client’s figures are accurate. If they prove not to be, the lawyer as well as the client may face sanctions. This means that your attorney must do more investigating and fact-checking to make sure your information as well as his certification is above-board.
Is it best to have a bankruptcy attorney when and if it comes time to file for bankruptcy? There is certainly no legal requirement stating that you have to retain a lawyer. However, you would be very foolish not to do so. If you choose to file on your own, and forget to file certain documents, your case can be subject to dismissal and you will need to start again from the very beginning. As an example, a couple recently tried to file for bankruptcy online. They were not exactly sure if we should have filed jointly or just the husband. They were doing it on their own and really goofed things up and now they are paying for it! Please do not do this in an attempt to save some money because it will only come back to haunt you in the end. It is in your best interest to have an experienced bankruptcy attorney working for you.
For more insights and additional information on Bankruptcy Law and also to get a free bankruptcy evaluation from an accredited bankruptcy lawyer who is local to you, please visit our web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
These are several of the major changes that were initiated under the new bankruptcy law:
* “Means Test” – You now have to show that you are not abusing the use of bankruptcy. This test calculates what you make per month minus certain expenses that are allowed. The “median income” will vary from state to state. If you fail the “means test’, then you must file for Chapter 13 bankruptcy.
* Expense allowances – Guidelines are put forth by the IRS for allowable expenses, and they are stingy. The food allowance is approximately $200 a month, and the housing allowance is approximate $800 a month.
* Residency requirements – There are state and federal bankruptcy laws, and some state laws are more lenient than others. Texas and Florida have very generous “homestead allowances”. The new bankruptcy law discourages you to look around for the best deal. You are not permitted to file for bankruptcy in a more favorable state unless you have resided there for a minimum of two years.
* Mandatory credit counseling – Another change that came with the new bankruptcy law is that you have to take a credit counseling course that has been approved within 180 days of filing for bankruptcy. Sorry to say, this is not a free course. The cost of this course is approximately $75.00.
* More paperwork – In order to prove that bankruptcy is necessary, the consumer will have to present much more documentation. Such things a debtor must provide are: a list of all unsecured and secured creditors, proof of taking the credit counseling course, a detailed list of one’s expenses and monthly income, liabilities and assets, the most recent tax return, photo ID and pay stubs.
* Hefty legal fees – A bankruptcy attorney must now “certify” that their client’s figures are accurate. If they prove not to be, the lawyer as well as the client may face sanctions. This means that your attorney must do more investigating and fact-checking to make sure your information as well as his certification is above-board.
Is it best to have a bankruptcy attorney when and if it comes time to file for bankruptcy? There is certainly no legal requirement stating that you have to retain a lawyer. However, you would be very foolish not to do so. If you choose to file on your own, and forget to file certain documents, your case can be subject to dismissal and you will need to start again from the very beginning. As an example, a couple recently tried to file for bankruptcy online. They were not exactly sure if we should have filed jointly or just the husband. They were doing it on their own and really goofed things up and now they are paying for it! Please do not do this in an attempt to save some money because it will only come back to haunt you in the end. It is in your best interest to have an experienced bankruptcy attorney working for you.
For more insights and additional information on Bankruptcy Law and also to get a free bankruptcy evaluation from an accredited bankruptcy lawyer who is local to you, please visit our web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
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