There a few common myths about bankruptcy that are important to note if you are deciding whether or not to file for it.

First, it is commonly thought it is better for you to transfer assets and property to family and friends so that you can get it back after emerging from bankruptcy. This includes money, cars, and stocks.

Another myth is that you can settle your financial issues by cashing out your 401 (K) plan or IRA.  The reason for this is because those are two of the items that are protected from bankruptcy. Therefore, if you emerge with nothing else, you will still have these.

Also, filing for bankruptcy does not mean that child support and alimony obligations will disappear because you will still have to pay these, regardless if you file for Chapter 7 or 13.

If you or a loved one has been considering filing for bankruptcy, it is important to make sure that you know the difference between the myths and facts. Contact the New Orleans bankruptcy lawyers of the Law Office of David D. Kervin Jr. by calling

New legal and professional bills submitted for court approval adds $750,000 to the Philadelphia Orchestra Association bankruptcy tab.

According to U.S. Bankruptcy Court documents,  the orchestra’s Chapter 11 proceeding had produced $2.4 million in expenses and fees to outside forms and consultants by the end of June. With months remaining in the Chapter 11 process, the cost of the proceedings is closing in on the $2.9 million the association once forecast for the entire process.

“The $2.9 million projection referenced in the most recent draft of the strategic plan reflects only bankruptcy-related professional fees and was based on an estimate of reasonable progress in the case,” orchestra spokesman Matt Broscious wrote in an email. “There are any number of factors and costs . . . The orchestra does not plan on issuing a revised projection for costs of reorganization until sometime in early fall. With the goal to provide ongoing financial sustainability for the orchestra, the bankruptcy process represents a set of onetime, short-time costs that will help us do that.”

The largest invoice to date comes from the orchestra’s bankruptcy lawyers, who have so far billed $1.05 million. The invoice shows billable hours by 12 lawyers and two paralegals. The second-largest invoice comes from the association’s bankruptcy adviser, with a total of $833,365.

If your business needs assistance with bankruptcy litigation, please contact the New Orleans Business Bankruptcy Litigation Attorneys of the Law Office of David D. Kervin, Jr. by calling 504-599-5906.

Borders Group Inc has won bankruptcy court approval to liquidate.

According to court documents, as many as 35 of the company’s stores could continue to operate as bookstores in some form if a last minute agreement with Books-A-Million Inc. can be reached. In court Thursday, Borders attorney Andrew Glenn said the two sides were still talking, but no agreement had been reached. The potential deal could save as many as 1,500 jobs.

A group of liquidators led by Hilco Merchant Resources and Gordon Brothers Retail Partners will sell off Borders’ merchandise and furniture. The process will likely be started Friday and be completed by September, according to the court filing.

Under the liquidation plan, Borders will keep the rights to its brand name and leases and hold separate auction processes for those assets. Gordon Brothers unit DJM Realty will market the leases.

The agreement would likely yield between $250 million and $284 million that the company can use to pay back creditors.

If you need assistance with bankruptcy litigation, please contact a New Orleans Bankruptcy Litigation Lawyer of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906.

Fruit basket and gifts retailer Harry & David Holdings Inc. has filed plans to exit Chapter 11 bankruptcy protection in late summer.

According to a reorganization plan filed Monday, the Medford, Oregon-based company will be able to convert all of its $200 million in outstanding notes into equity and raise $55 million in equity financing after it emerges from Chapter 11. The equity financing will be used to pay down debt.

The company entered Chapter 11 bankruptcy protection in March after struggling to remain afloat during the recession. Harold & David said the reorganization plan has the support of its official committee of unsecured creditors and about 81 percent of the company’s noteholders.

If you are considering bankruptcy, please contact the New Orleans Bankruptcy Attorneys of the Law Office of David D. Kervin, Jr. at 504-599-5906.

A medical company in the Bronx, New York was forced into filing for Chapter 7 bankruptcy last week.

According to court documents, Eastchester Precision Medical, which operated out of a van, was required to file for Chapter 7 bankrutpcy, by its sister company Precision office Management Inc. The report shows that Eastchester owed Precision Management approximately $2 million. Eastchester, which specialized in MRI services, was cut-off by Geico for not having an in-house MRI unit, which prevented more than $920 in claims from being given out.

The company also used a doctor’s name as the listed owner of the facility, in exchange for compensation, according to the filing. The insurance company said the doctor, Dr. Edovard Hazel, did not sign off on any services during this time and is not qualified to read MRIs.

To learn more about bankruptcy, please contact the New Orleans Chapter 7 bankruptcy lawyers of the Law Office of David D. Kervin, Jr., at 504-599-5906.

The Syracuse Symphony Orchestra filed for Chapter 7 bankruptcy this week.

According to court documents, the organization filed a petition in federal bankruptcy court on Tuesday. The orchestra listed $327,000 in assets and almost $4 million in liabilities.

According to the petition, the organization’s main creditor is M&T Bank, which is owed about $545,000. The bank has a lien on donated artwork and vinyl records as well as music library holdings. The orchestra listed 559 other nonpriority claims in the petition. Every individual left with an unused ticket was named in the filing.

The organization’s list of assets includes a Yamaha piano worth $12,000 and a $3,000 truck.

If you are considering 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.

Hawaii’s Unity House Inc. filed for Chapter 11 bankruptcy protection on Wednesday.

The famous Honolulu nonprofit filed for Chapter 11 bankruptcy protection to protect its assets and gain time to repay a $5.5 million loan on The Lotus at Diamond Head hotel. The organization needs more time to secure funds to repay the loan, borrowed from MK Pacific LLC.

According to court documents, in pursuing repayment of the loan, MK Pacific LLC filed a foreclosure lawsuit against Unity House and a receiver was appointed in the case last month.

Unity House chairman Jim Boersema told reporters the organization could sell the 51-room Lotus at Diamond Head to help finance its exit from bankruptcy. The hotel is currently undergoing an appraisal.

Court documents show Unity House’s debts are between $1 million and $10 million. The organization listed assets of more than $20 million.

If your business is facing bankruptcy, please contact a New Orleans bankruptcy lawyer of the Law Office of David D. Kervin, Jr. LLC by calling 504-599-5906.

A judge said Tuesday Borders Group Inc. will receive a $505 million bankruptcy loan.

The Ann Arbor, Michigan-based company, the second-largest U.S. bookstore chain, previously received permission to draw $400 million on an interim basis from the loan by lenders, led by General Electric Capital Corp. U.S. Bankruptcy Judge Martin Glenn said that he will give final approval after changes to the initial agreement are approved and submitted to the court.

“When I look at the incremental cost of new money coming in, it’s pretty steep,” Glenn said. However, he believed the loan appeared to be Borders’ best option.

Borders is liquidating 200 stores in a deal that may bring $175 million to creditors. The company is planning to reorganize its remaining stores.

Borders is currently operating under Chapter 11 bankruptcy protection.

If you are facing a bankruptcy-related lawsuit, please contact a New Orleans Bankruptcy Attorney of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906.

A federal bankruptcy judge is expected to rule Thursday on whether Blockbuster inc. can stay in business or will be liquidated.

The hearing begins at 10:00 a.m. Thursday in bankruptcy court in Manhattan. Among those objecting to Blockbuster’s plans are several movie studies as well as the government’s own bankruptcy-court representative. Summit Entertainment and an official creditors committee say liquidation would help secure repayment for their goods. They are asking U.S. Bankruptcy Judge Burton Lifland to reject a proposed sale of the company for $290 million to senior bondholders.

Blockbuster has asked the judge to approve the proposed sale of the company to New York-based hedge fund Monarch Alternative Capital. Lifland signaled last week however, that the sale process could be in trouble, calling the Monarch-led bid “one of the most aggressive documents that I have seen in my 31 years on the bench.”

If you are facing bankruptcy, please contact a New Orleans Bankruptcy Lawyer of the Law Office of David D. Kervin, Jr., by calling 504-599-5906.

A federal judge on Thursday approved the bankruptcy plan of the company that took over the bad assets shed by General Motors two years ago.

Judge Robert E. Gerber of United States Bankruptcy Court in Manhattan said he will allow for the distribution of stock and warrants to unsecured creditors who filed claims against the company, the Motors Liquidation Company.

Motors Liquidation took over certain claims and assets from General Motors when the automaker reorganized in bankruptcy court in June 2009. GM’s best assets were sold to a new, stand-alone company.

Tim Yost, a spokesman for AlixPartners, the firm running the liquidation of Motors Liquidation said Thursday the company “was pleased that the court today indicated from the bench that it will be confirming M.L.C.’s plan for reorganization and issuing a written decision as soon as feasible.”

If you are facing bankruptcy, please contact the New Orleans Bankruptcy Attorneys of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906.