Total business bankruptcies decreased in 2010, while Chapter 12 business filings increased 33 percent.
Total bankruptcy filings in the United States increased by 8 percent, due to a surge in consumer filings. Business bankruptcies dropped to 56,282 filings during 2010, down from 60,837 in 2009. According to data released by the Administrative Office of the U.S. Courts, the only business bankruptcy chapter to experience an increase in filings in 2010 was Chapter 12.
Chapter 12 bankruptcy is written specifically for the benefit of family-run farms and fishing operations, and provides special debt relief to non-commercial farmers and fisherman. Chapter 12 business filings increased 33 percent to 723 bankruptcies in 2010. Only 544 such filings were recorded in 2009. The 2010 Chapter 12 bankruptcies represent the highest total since 1999, when 834 filings were registered.
If your family business is facing bankruptcy, please contact the New Orleans Chapter 12 bankruptcy lawyers of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906.
Chapter 13 bankruptcy filings increased for the fifth consecutive year in 2010.
According to U.S. Court System data, filings increased 8 percent to 438,913 in 2010, up from almost 407,000 the year before. The 9th Judicial District posted the highest number of Chapter 13 filings for the year, with 87,760. The district encompasses California, Arizona, Nevada, New Mexico, Alaska, Idaho, Montana, Oregon, and Washington.
A Chapter 13 bankruptcy filing allows individuals to undergo a financial restructuring supervised by a federal bankruptcy court. If a borrower is foreclosed on, a Chapter 13 allows them to retain assets until their finances are organized.
In the last three months of 2010, there were more than 109,000 Chapter 13 filings across the U.S.
Chapter 13s accounted for the second largest sector of bankruptcy filings last year. Chapter 7 bankruptcy filings, which focus on liquidation, were the most common filings. There were 1.1 million filed during 2010.
If you are facing bankruptcy, please contact a New Orleans Chapter 13 Bankruptcy Attorney of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906.
W.R. Grace & Co., a producer of catalysts used in oil refining, said the amount it will need to borrow in order to exit chapter 11 bankruptcy has dropped to $600 million.
According to Grace Chief Financial Officer Hudson La Force III, the company will use $1 billion of cash to help fund its exit from Chapter 11 bankruptcy protection. That compares with Grace’s forecast in July that it would need to borrow $800 million. In 2008, the company said it would need $1.5 billion.
The cash and debt will fund a trust compensating people with lung diseases caused by asbestos that was found in Grace products.
The company’s reorganization plan was approved by U.S. Bankruptcy Judge Judith Fitzgerald on January 31. The plan however, requires higher court approval because it would require future asbestos victims to seek compensation from the trust rather than Grace.
If you are facing bankruptcy, contact the New Orleans bankruptcy lawyers of the Law Office of David D. Kervin, Jr. by calling 504-599-5906 to discuss your legal situation.
An independent movie studio has asked a judge to force Blockbuster Inc. to pay its bills or go into liquidation.
According to court documents, Blockbuster told Summit Distribution LLC, the studio behind the hit “Twilight” films, that it would not pay $6.8 million it owed for DVDs shipped since it filed for Chapter 11 bankruptcy in September, because it did not have the money. In documents filed with a U.S. bankruptcy court in Manhattan on Tuesday, Summit said Blockbuster representatives spoke with management on January 28 and “to Summit’s surprise and dismay, the debtors informed Summit that the debtors would not pay Summit with respect to products that were shipped post-petition, because the debtors lacked the funds to do so.”
If Blockbuster was forced into a Chapter 7 liquidation, a trustee would likely replace the company’s management and the rental-chain could be force to sell or close all of its operations to pay off debts.
Blockbuster filed for Chapter 11 bankruptcy in September, after months of struggling to compete with video-on-demand competitors and mail-order pioneer Netflix Inc. The company has been working on a business plan that includes closing man of it’s 3,000 U.S. stores.
To learn more about Chapter 7 bankruptcy, please contact the New Orleans Chapter 7 Bankruptcy Attorneys of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906.