New York readers might be interested in the story of a man who sold his technology company for $1.8 billion only to file for personal bankruptcy five years later. The man in this story says that he now owes up to $100 million and has approximately $50 million to pay those debts. Most of his losses are alleged to be the result of bad investments in real estate and other ventures. If he chooses to file Chapter 7 bankruptcy, he will be able to start over with a clean slate. He will not be required to pay back his debts because they are almost all business-related. His petition for bankruptcy was filed in late May. It listed assets totaling as much as $50 million and debt totalling as much as $100 million. When a Chapter 7 bankruptcy is filed, an impartial trustee is appointed to administer the case. The trustee will then sell off the assets to help pay for the debts. There are different types of bankruptcy options available for people with debt problems. Each type comes with different benefits or protections as well as drawbacks. Several factors influence which type of bankruptcy is most appropriate for a given… Continue reading
New York residents may have heard that actress Kelly Rutherford filed for Chapter 7 bankruptcy after an expensive divorce and child custody battle that cost her over $2 million in legal fees. In addition, her income had been drastically reduced because she was no longer making the $486,000 per month salary that she had been during her Gossip Girl TV series. Now her income is reported to be lower than $1300 month. The actress has two children, ages four and six, who are reported to be living with her ex-husband in Monaco. Traveling to and from Monaco has strained the actress’ finances, along with $35,000 she owes in back taxes and a $25,000 American Express bill. She has also borrowed several thousands of dollars from relatives and friends in order to ameliorate some of her financial challenges. Her only assets appear to include about $12,000 in the bank, $10,000 in furniture, and jewelry valued at approximately $1500. Chapter 7 bankruptcy should eliminate most debt, unless she has outstanding student loans and tax debt. Kelly Rutherford appeared to have more debt than she could afford to pay, especially because her divorce and custody battle were so costly. Since her income had… Continue reading
After a Rockland County divorce, many people find themselves struggling with debt and the aftermath of their decision for years to come. One of the biggest concerns many people have comes after they choose to file a Chapter 7 bankruptcy petition, especially if they have also held a mortgage in the past with their former spouse. It’s not unusual for one spouse to sign over rights to a deed during a divorce. This does not automatically let him or her off the hook when it comes to paying the debt, even if a divorce decree specifies a responsible party. The lender can ultimately hold both parties responsible for payment; however, the individual who no longer has an interest in the property does have some leverage at recouping his or her loss. That individual can use a Chapter 7 bankruptcy petition in order to find relief. It’s possible to file bankruptcy on a mortgage that was taken out with a former spouse without involving that person. If the debt is discharged in bankruptcy court, the petitioner will no longer be responsible for paying any share of delinquent mortgage payments. Even so, his or her name will remain on the note until… Continue reading
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