Chit Chat files Chapter 11 bankruptcy in New York

Here’s an interesting situation that has ended up in Chapter 11 bankruptcy since the two companies can’t come to a reasonable agreement. The news from July 30 claims that Chit Chat Holdings, a company that provides cell phone service in New York, has had to filed Chapter 11 bankruptcy to settle a major dispute with Sprint, the well-known phone company. The issue? Sprint claims Chit Chat holdings owes money it claims it doesn’t. The amount of money Sprint claims Chit Chat holdings owes has not been revealed, but a member of Chit Chat holdings has claimed that the number is high and over several hundred thousand dollars. Chit Chat holdings used to have retail outlets, but it’s now a mobile virtual network operator. It began offering its services in New York City and along the East Coast in 2013, but now the billing issues have caused serious problems for the company. The company claims that it didn’t receive bills in a timely manner; information about data usage allegedly came over 60 days late. On top of that, the company that monitors usage has claimed that it hasn’t received the information either, which could mean that the billing is in error… Continue reading

Chapter 7 bankruptcy varies from Chapter 13

Chapter 7 bankruptcy is something you may have to consider if you’re far in debt. When you’re making the decision about whether to pursue this or other kinds of bankruptcy, you need to know the difference. Here are a few of the differences you may run into when considering Chapter 7 versus Chapter 13 bankruptcy. If you decide that you want to wipe out all of your debts and don’t want to pay anything — or as little as possible to do so — you’ll be looking at a Chapter 7 bankruptcy. Chapter 7bankruptcy allows most types of unsecured debt to be completely wiped out, but it won’t remove bills like child support, money owed to the IRS or student loans. Those three things cannot be wiped out through bankruptcy. The article reports that 98 percent of the time, on average, all of the creditors you owe will receive nothing. Items that fall under secured debt will be treated differently, though, so you may be able to keep your home if you can pay to get your mortgage current or allowed to keep your car if you can pay off your debt. Chapter 7 bankruptcy also sometimes allows you to… Continue reading

Chapter 13, 7 bankruptcy filings down in New York

Living in New York, you may be interested to hear that bankruptcy filings in Rochester have dropped by around 27 percentage points in July 2014. This could be a good sign for the economy, since fewer people have been getting to the point of bankruptcy based on this data. Although the percentages have dropped, there was no report on the amount of debt those who filed were carrying on average. There were 141 new bankruptcy petitions filed in July, which proved to be a 26.9 percent drop from the previous month in 2013. In 2013, there had been 193 cases filed. This data includes information from nine counties. Those include Livingston, Ontario, Wayne, Seneca, Steuben, Yates, Schuyler, Chemung and Monroe. To further break down the information, it’s important to see which types of bankruptcies are being filed. According to the Aug. 14 news, 103 people in Rochester had filed for Chapter 7 bankruptcy. Thirty-eight people filed for Chapter 13 petitions instead. None of the people in the collected data had opted for Chapter 11 protection. Interestingly, Chapter 7 bankruptcy is used to completely discharge debts by selling assets. Chapter 13 allows people to partially or fully pay their creditors, so… Continue reading

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