M Many New Yorkers may face massive medical bills and end up drowning in debt, no matter how hard they try to repay them. Some have no choice but to file for bankruptcy in order to rebuild their credit. A politician has recently admitted to having to file for Chapter 7 bankruptcy in 2003. The Republican candidate from Oregon, who is preparing for the November 4 election, filed for bankruptcy due to the debt he faced from his ex-wife’s illness. The couple had no health insurance at the time. They had owed $20,000, mostly in medical debt. In addition, two creditors — Asset Management Outsourcing and Western Credit and Collection — filed lawsuits against the couple, for a total of more than $13,000. The debts and lawsuits were combined into the bankruptcy filing. The marriage could not survive the medical and financial problems the couple faced, and the two divorced later that year. The ex-wife received the treatment she needed and recovered from her medical condition. Both have since remarried. Although opponents would likely use the politician’s bankruptcy as part of a mudslinging campaign, the man prefers to think positively of the situation. He says that it shows that everyone… Continue reading
When a person files for bankruptcy, there are many assets that can be taken away and some that the person can keep. In a Chapter 7 bankruptcy, under the homestead exemption, you may be able to keep your home if you own it and have made regular payments. In addition, public assistance benefits are consideredbankruptcy exemptions. This very fact is under discussion in a current New York bankruptcy case. A 79-year-old widow from East Village, Manhattan, was forced to file for Chapter 7 bankruptcy in November 2011 after her husband died and left her with more than $20,000 in credit card debt. Her home, where she has lived since 1965, is a rent-stabilized co-op. She does not own her home, so after filing for bankruptcy, the property owner offered to buy out her lease instead of evicting her and her 50-year-old son. The woman’s attorney put forth the idea that because the woman’s apartment could be considered public assistance, it cannot be taken from her in the bankruptcy. However, in April 2012, the bankruptcy court shot down this idea. The judge argued that rent-stabilized apartments have no income requirements and that the woman’s ability to rent one was based on… Continue reading
In New York, Chapter 11 bankruptcy can be used to help a business reorganize itself. In this case, a company called Momentive claimed $2.69 billion in assets and $4.17 billion in debt as it filed for Chapter 11bankruptcy in April 2014. The company hasn’t had an annual profit since it was bought by Apollo in 2006, according to data from Bloomberg. Momentive Performance Materials Inc may not be a name you know, but you may have come across its products. The news reports that the company makes silicones and quartz products and is owned by Apollo Global Management LLC. It has recently won approval through the courts that will allow its plan to go to a creditor vote. What does this mean for the company as it tries to work to pay down its debt? The article states that the current plan states that Apollo and an ad-hoc committee of noteholders, would get nothing. That isn’t sitting well with the noteholders, because they believe that their debt should be treated equally to the second-lien noteholders. Some of the lowest-tier noteholders include Blue Mountain Credit Alternatives Master Fund LP and Aurelius Capital Partners LP. The plan that the company wants to… Continue reading
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