Fountain Powerboats, maker of expensive boats, has just recently filed for Chapter 11 bankruptcy. The company reportedly owed millions of dollars to its main creditors. Fiscal year loses did not help revive the company’s falling profits. Chapter 11 bankruptcy filing is the company’s attempt to regain its financial control.

The bankruptcy filing of Fountain Powerboats is a clear indication that people are more conscious on how they spend their money. Necessities in life are prioritized over not very important things more these days. Perhaps there are still people who are able to maintain luxury items but certainly, the rising number of companies like Fountain Powerboats speaks that majority of people is more careful on putting off spending for non-essential things.

Eagles Michael Vick has filed for chapter 11 bankruptcy last July 2008 after incurring millions in debts to several creditors including Joel Enterprises, Royal Bank of Canada and Atlanta Falcons. Reports said that US Bankruptcy Judge Frank J. Santoro has initially rejected a repayment plan offered by the side of Michael Vick .

Payment for the creditors will come out from some of the current properties of Michael Vick which will be liquidated. This includes four homes, boats and cars. A portion of his future earnings will also be used to repay his debts. He will pay a portion for earnings between $750,001 to $2.5M while he needs to pay 25% for earnings between $2.5M to $10M.

Eagles Michael Vick is said to retain his home in Hampton. The NFL player was reported to feel relieved over the outcome of his bankruptcy case.

First of all, certain conditions must be met in order to be eligible to this type. For instance, when the debtor have settled all his monthly obligations such as utilities, budget for food, clothing, rent or mortgage and is left with no or little income to pay his creditors, he may have a chance to file for bankruptcy under this type. The debtor may also hear about the means test when exploring the procedures on how to file bankruptcy under this type. The means test follows a formula which simply determines if he still has the capacity to pay minimal amount to his creditors. The goal of this test as well as the other procedures one need to go through under this type is to establish those who are really suitable to file for this type.

All of the information here is provided to give an overview on how to file bankruptcy as well as the types of bankruptcies available to us. It is always advisable to confer with a bankruptcy lawyer for professional counsel.

All of the information here is provided to give an overview on how to file bankruptcy as well as the types of bankruptcies available to us. It is always advisable to confer with a bankruptcy lawyer for professional counsel.

All of the information here is provided to give an overview on how to file bankruptcy as well as the types of bankruptcies available to us. It is always advisable to confer with a bankruptcy lawyer for professional counsel.

Chapter 12 works the same way with other chapters which starts with the filing of bankruptcy petition and provision of schedule of current income and expenditures, assets, financial affairs, executory contracts and unexpired leases. Together with filing of bankruptcy petition, corresponding filing fees are to be paid to the clerk of the court.

Chapter 12 bankruptcy provides protection against any harassment from creditors. Once petition is filed, creditors are prevented from demanding payments from the families or much more file any kind of lawsuits until the stay effect is in action. A bankruptcy administrator will hold a meeting wherein the debtors and creditors must attend to answer all questions required. This is also the time the debtors can propose their repayment action plan before the court. The chapter 12 trustee and creditors will convene a meeting to discuss the debtors’ repayment plan for approval. Once approved, the debtors are required to pay back their creditors by priority. In some cases, the bankruptcy court may award a hardship discharge only under circumstances beyond the control of the debtor. Non dischargeable debts are still not included in this case.

What happens when a company files for corporate bankruptcy ? By law, the company may file chapter 7 bankruptcy where the company cease operations and its assets are liquidated. All proceeds of the sale will go to the respective creditors following the corresponding priority. Secured creditors or those which specific holds the company’s assets are paid first then the lenders or banks and last to be paid are the stockholders. However, not all companies can file chapter 7 bankruptcy. This applies if continuing operations is no longer beneficial for the overall condition of the company.

A company may also file chapter 11 bankruptcy in lieu of chapter 7 bankruptcy. This is done by proposing a reorganization plan that will have profitable results for the benefit of the creditors or lenders. All major company decisions are supervised by a bankruptcy court to ensure the welfare of the company is taken cared of for the sake of the creditors. To file chapter 11 bankruptcy is a challenge to a crippling company to prove it can regain its operations and take a better control of its financial problems.

In corporate bankruptcy , a company’s case is evaluated to determine which type of bankruptcy it should use. There are advantages if a company file chapter 11 bankruptcy and this is still keeping the business even with the bankruptcy court’s supervision . Most often than not, this company has a great chance of repaying all its debts and gain full control of its operations in no time. To file chapter 7 bankruptcy may also have its advantages but more for the creditors, lenders and banks by means of getting paid for the debt the company owes them.

Bankruptcy law firms employ competent bankruptcy lawyers who can handle corporate bankruptcy cases. More over, bankruptcy law firms work double time since most corporate bankruptcy cases require immediate representation. Money is further lost when the procedure is delayed and bankruptcy lawyers know this. This is why they are adept in any new bankruptcy laws and uses this to help their cases. Bankruptcy laws can be very intimidating but for bankruptcy lawyers , its may mean everything and they put their hearts learning it.

For a company to declare bankruptcy , it implies the company is in serious financial problems. The only thing a bankruptcy lawyer can do is to make sure the case if properly represented in the bankruptcy court and hope that it wins the case for the client.

According to the Administrative Office of the US Courts, bankruptcy filing fees are as follows:

• Chapter 7 – $299
• Chapter 13 – $274
• Chapter 11 – $1,039

The bankruptcy costs above do not include credit counseling fees (which is required before a debtor file for bankruptcy), court fees, amendment fees and lawyer’s fees. The most significant aspect of this process is what bankruptcy can cost a debtor in long term scenario. Bankruptcy leaves a mark on a debtor’s credit rating making it hard to get future loans. If loans are available, it usually carries high interest rates. This is the reality that bankruptcy costs to a debtor life.

It is very important to take note of this bankruptcy information as a guide what to expect when filing for bankruptcy. If not for this reason alone, it is recommended to avoid bankruptcy as much as possible.

According to the US Courts, under the Bankruptcy Code, “family farmers” and “family fishermen” fall into two categories: (1) an individual or individual and spouse and (2) a corporation or partnership. Farmers or fishermen falling into the first category must meet each of the following four criteria as of the date the petition is filed in order to qualify for relief under chapter 12 :

1. The individual or husband and wife must be engaged in a farming operation or a commercial fishing operation.

2. The total debts (secured and unsecured) of the operation must not exceed $3,544,525 (if a farming operation) or $1,642,500 (if a commercial fishing operation).

3. If a family farmer, at least 50%, and if family fisherman at least 80%, of the total debts that are fixed in amount (exclusive of debt for the debtor’s home) must be related to the farming or commercial fishing operation.

4. More than 50% of the gross income of the individual or the husband and wife for the preceding tax year (or, for family farmers only, for each of the 2nd and 3rd prior tax years) must have come from the farming or commercial fishing operation.

In order for a corporation or partnership to fall within the second category of debtors eligible to file as family farmers or family fishermen, the corporation or partnership must meet each of the following criteria as of the date of the filing of the petition:
1. More than one-half the outstanding stock or equity in the corporation or partnership must be owned by one family or by one family and its relatives.

2. The family or the family and its relatives must conduct the farming or commercial fishing operation.

3. More than 80% of the value of the corporate or partnership assets must be related to the farming or fishing operation.

4. The total indebtedness of the corporation or partnership must not exceed $3,544,525 (if a farming operation) or $1,642,500 (if a commercial fishing operation).

5. At least 50% for a farming operation or 80% for a fishing operation of the corporation’s or partnership’s total debts which are fixed in amount (exclusive of debt for one home occupied by a shareholder) must be related to the farming or fishing operation.

6. If the corporation issues stock, the stock cannot be publicly traded.