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

The number of consumer bankruptcy filings have fallen in the United States in 2011 compared to 2010.

According to the American Bankruptcy Institute, the number of consumer bankruptcy has fallen 17 percent from 130, 329 to 108,517. This number is also down 10 percent from where they were at the start of the year.

The report has been based on data calculated by the National Research Center. From August to September, the number of consumer bankruptcies fell by 4 percent. Although these numbers have decreased there are still concerns with the U.S unemployment rate.

If you or a loved one has been struggling with debt, you need representation on your side that can explain all of your options and make this time less stressful. Contact the New Orleans bankruptcy lawyers of the Law Office of David D. Kervin, Jr. by calling 504-599-5906 today.

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.

A judge on Thursday said Borders Group Inc. could auction itself off to liquidators.

Judge Martin Glenn of U.S. Bankruptcy Court in Manhattan approved procedures for an auction of Borders, which will occur if any parties decide to challenge a bid by liquidators led by Gordon Brothers Group and Hilco Merchant Resources. Borders on Thursday said it hoped the private equity firm Najafi Cos. Or other parties will come forward with a bid that would keep the company in business.

Najafi’s Direct Brands offered $215.1 million for Borders’ assets and would have assumed about $220 million in liabilities. Borders on Wednesday however, named the liquidators as the new “stalking horse” bidder for next week’s auction amid concerns from creditors that the liquidators’ bid was better than Najafi’s in the event that the company had to be liquidated.

If you need assistance with bankruptcy proceedings, please contact the New Orleans Debt Negotiation Attorneys of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906.

Chapter 7 bankruptcy is an opportunity for a debtor to emerge out of a financial crisis relatively quickly.

The Chapter 7 bankruptcy code allows all non-exempt property of the debtor to be sold, with the proceeds going to creditors. Typically, individuals filing for Chapter 7 bankruptcy have little or no assets to lose. Chapter 7 bankruptcy is also known as bankruptcy liquidation, which means converting assets into money. Chapter 7 accounts for approximately 65 percent of all Consumer Bankruptcy filings.

Under Chapter 7 a trustee is appointed who works to collect all non-exempt property of the debtor, sell the assets, and distribute the proceeds to the appropriate creditors. Unlike other types of bankruptcy, a debtor need not pay a trustee under Chapter 7 bankruptcy.

If you would like to learn more about Chapter 7 bankruptcy liquidation, please contact a New Orleans Chapter 7 Bankruptcy Attorney of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906.

Lehman Brothers Holdings Inc. filed a new $65 billion bankruptcy liquidation plan Wednesday.

According to court documents, Lehman said it believed it had an “agreement in principle” with major creditor groups on the revised plan. The plan, if approved, would enable what remains the fourth-largest U.S. investment bank to emerge from Chapter 11 bankruptcy protection. Chief Executive Bryan Marsal said he hopes to begin payments next year.

Under the new plan, many unsecured creditors would still recover only about one-fifth of the money they are owed. The company said the plan is different than its previous plan, filed in January, in that some sums will go to unsecured creditors of the parent rather than creditors of subsidiaries.

If your business is considering filing for bankruptcy, please contact the New Orleans Small Bankruptcy Liquidation Lawyers of the Law Office of David D. Kervin, Jr. by calling 504-599-5906.

Lawmakers in Harrisburg, Pennsylvania are at odds over whether Chapter 9 municipal bankruptcy is the right option for the indebted state capital.

A team of state-appointed advisors has recommended against bankruptcy, suggesting instead a rescue plan that would sell an incinerator at the root of the city’s fiscal problems. The Harrisburg City Council has until July 23 to adopt the rescue plan, which also calls for renegotiating labor deals and cutting jobs. The city council requested on Wednesday that Mayor Linda Thompson prepare for bankruptcy as a last resort.

The Pennsylvania legislature is debating a bill that would create a management board with full power to implement the Act 47 rescue plan if the council does not approve.

Pennsylvania’s Act 47 law mandates that financially faltering cities implement plans to ward off Chapter 9 filings.

If you are struggling with debt, please contact a New Orleans debt negotiation lawyer of the Law Office of David D. Kervin, Jr. by calling 504-599-5906.

Four sports apparel manufacturing executives in Las Vegas have filed for Chapter 7 Bankrutpcy.

According to court documents, Jeff Newman, Lucy Newman, David Timothy Reichert, and Kenneth Robert West filed Chapter 7 personal bankruptcy after the sale of their business, SFC USA Inc., resulted in acrimonious litigation with the buyer. SFC USA was a locally-owned embroidery and printing company in Las Vegas that was open for nearly 40 years.

The company was to be sold to LaSalle Capital Group L.P., a Chicago based hedge fund. Seven months after the sale, SFC executives filed a lawsuit claiming LaSalle had mismanaged the business and failed to fulfill financial obligations. The litigation lasted more than six years and the lawsuit was eventually dismissed.

All four former-SFC executives cited mounting legal fees as the reason for their bankruptcy filings.

If you are considering bankruptcy, please contact the New Orleans Chapter 7 Bankruptcy Lawyers of the Law Office of David D. Kervin, Jr., LLC, at 504-599-5906.

A judge on Thursday gave Borders Group Inc. more time to come up with a plan to sell most or all of the company’s stores.

A lawyer for the bookseller said the company could eventually come up with a plan to reorganize, but added that a plan to sell stores to a third party is more imminent. The company says it is in talks with “multiple buyers” to sell “most up to all” of Border’s remaining stores.

According to U.S. Bankruptcy Court documents, Judge Martin Glenn approved the extension, which gives Borders until October to file a reorganization plan and until December to hold a vote on that plan.

Without the approval of its request, Border’s exclusivity period to file a plan would have expired June 16.

If your business is facing a bankruptcy, please contact the New Orleans business bankruptcy attorneys of the Law Office of David D. Kervin, Jr., LLC, at 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.