A provision in the law increases the statutory filing fee for all new Chapter 11 cases to $1,167. The total fee for filing a Chapter 11 case will increase to $1,213 (statutory fee of $1,167 under 28 U.S.C. § 1930(a)(3) plus the administrative fee of $46 under Item 8 of the Bankruptcy Court Miscellaneous Fee Schedule).
Source: uscourts.gov
Video: How much does it cost to file bankruptcy – South Jordan Bankruptcy Attorney
A123’s Bankruptcy: Facts, Reax and Predictions : Greentech Media
That makes it a big political story, with partisans on both sides denouncing and defending the Department of Energy’s $249.1 million grant to A123 (about $132 million spent so far, mainly to build its flagship factory in Livonia, Mich.). We’ve already seen the inevitable comparison to bankrupt solar company Solyndra, which took a $535 million loan guarantee from the Department of Energy only to go under last year. DOE-backed flywheel energy storage maker Beacon Power and thin-film solar startup Abound Solar have since declared bankruptcy as well.
Source: greentechmedia.com
Spouse isn’t immune to bankruptcy’s impact
If you are in reasonably good health, I recommend that you avoid bankruptcy if at all possible. Instead, keep working and find a way to pay off your credit card debt. You’ll be in better shape when you do retire. For one thing, if you can work just a few more years, you can put off claiming your Social Security benefits. Every year you delay collecting benefits increases the amount you receive when you do retire by 5 percent to 8 percent. (For details, see the Social Security Administration website’s page, "Retirement Planner: Delayed Retirement Credits.") By continuing to work, you may also keep building up the balance in your employer’s retirement plan. It would be wonderful to retire at age 66. However, as you and many people are finding out, you may not be able to retire when you want if you didn’t make adequate plans ahead of time or if those plans didn’t work out.
Source: creditcards.com
Selling A123 before the fall
Over the intervening three years, North Bridge didn’t sell a single share. Not when lockups originally expired. Not when the stock price steadily declined. Not when it was forced to recall defective electric car batteries last December. Not when the company signed a $465 million bail-out of sorts in early August with Chinese auto parts maker Wanxiang Group. Not a few days later when U.S. Congressmen began objecting to the deal, or when NASDAQ issues a delisting notice on August 22 (because the company’s shares had been trading below $1 for more than 30 days).
Source: cnn.com
New Hampshire’s Bankruptcy, Business Law and Foreclosure Blog: Reaffirmation Agreements in Bankruptcy
A debtor may wish to repay a debt, even though that debt would normally be discharged in bankruptcy case. For example, a debtor may wish to keep his/her car. To do so, the debtor enters into a reaffirmation agreement with the creditor who holds the loan/title to the car. Reaffirmations are voluntary and not required by law. It is recommended that the debtor carefully consider whether or not the agreed upon payments can be made before entering into a reaffirmation agreement. Even though the debtor is current on his/her car payments, the car lender may repossess the car if a reaffirmation agreement is not made.
Source: blogspot.com
Alternative to Bankruptcy Debt Settlement Is It Feasible?
There is another nasty, potential surprise, as well. If you settle a debt for less than what is owed, the creditor will most likely submit a Form 1099-C to the IRS on the amount of debt that was canceled or forgiven. Based on this 1099, the IRS may wish to treat the amount of debt cancelled as “income to you” for tax purposes! So, if you have a $10,000.00 debt and pay $5,000.00 and $5,000.00 has been canceled, the IRS may treat that $5,000.00 canceled debt as ”income to you”! This could mean that you are taxed on $5,000.00 more income than you received! Granted, if you file a Form 982 and can demonstrate that you were insolvent at the time the debt was forgiven or canceled, then the debt may not count as income but it is
Source: bankruptcylawnetwork.com
Bankruptcy rules let debtors pay filing fees in installments
Massachusetts bankruptcy lawyers who have clients who keep struggling to get up all the money necessary to file a case should be aware that the bankruptcy rules may provide a partial solution. Under Rule 1006 of the federal rules of bankruptcy procedure, a debtor may apply to pay the filing fee in as many as four installments, rather than cough up the full $306 at the moment of filing.
Source: douglasbeaton.com
First Day Declaration of CFO of A123 Filed With Bankruptcy Court in Delaware
The Debtors implemented an extensive marketing process searching for potential partners and equity investors as well as entities interested in acquiring some or all of the Debtors’ assets. This process was primarily conducted by Lazard as directed by A123. During an initial round of investigation, Lazard contacted approximately 74 parties, 24 of which reviewed a “teaser” prepared by Lazard and discussed the process with Lazard. These parties were primarily strategic investors as it was determined strategic buyers were more likely to have interest in the Debtors’ assets than financial buyers. Following this stage, 11 of the 24 parties signed confidentiality agreements to begin due diligence and received a confidential information memorandum. Ten parties were granted access to a dataroom to complete further diligence on A123. Seven parties visited A123 facilities and received management presentations. Ultimately, however, only one offer, from Wanxiang, was received to invest in the Debtors as a going concern, and three non-binding offers were received to purchase or otherwise invest in a more limited subset of the Debtors’ assets. One investor who expressed interest in acquiring the Debtors as a going concern declined to submit any binding offer after completing extensive due diligence.
Source: chapter11cases.com