A case involving the bankruptcy of a public utility in New Mexico providing water and sewer services to residential consumers demonstrates how a debtor cannot avoid certain legal requirements imposed on particular enterprises by the State and then use the lack of...
Month: October 2014
Determining When Debt Levels Are Too High for Chapter 13 Bankruptcy
Individuals considering whether to file a Chapter 13 bankruptcy case must not have too much debt or they will not be eligible to file for bankruptcy protection under that chapter. The rationale underlying this ceiling stems from the concern that a debtor with too much...
Solar Energy Company Files for Chapter 7 Bankruptcy
In late July, Ascendant Energy, a solar technology company based in Owls Head, Maine, filed for Chapter 7 bankruptcy. The company will not repay approximately $780,000 in debt, acquired mainly through loans and grants from the Maine Technology Institute and investment...
Teaming Up With Your Creditors in Bankruptcy
Generally speaking, in most Chapter 7 and Chapter 13 bankruptcy cases, individuals filing such actions view their creditors - at least for the pendency of the case -as legal adversaries whose interests diverge and whose goals clash. By contrast, in some Chapter 11...
Neither a Lender Nor a Broker Be
A recent ongoing case pending in the United States Bankruptcy Court in Albuquerque reflects a recurring difficulty borrowers have in dealing with putative lenders. According to a decision in the case of In Re Clark, Case No. 13-12132-j13, Adversary No. 13-1077...
Distinguishing Between Secured and Unsecured Claims in Bankruptcy
Secured and Unsecured Claims are treated slightly differently in Chapter 7 liquidations verses a Chapter 13 reorganization or a Chapter 11 corporate reorganization. In a Chapter 7, the Debtor generally discharges all unsecured debts and does not have to pay on any of...
Abandonment of Claim Permitted by Bankruptcy Court in New Mexico
The United States Bankruptcy Court in Albuquerque decided to permit abandonment of property upon an unopposed motion by the Debtor itself. In the case of In Re College of Christian Brothers, Case No. 12-11195 j7 (Bankr Ct. N.M. 2014), the Court entered a default order...
Navajo Indians Reach Historic Settlement with Federal Government
The United States government has agreed to pay the Navajo Nation a record $554 million to settle longstanding claims by America's largest Indian tribe that its funds and natural resources were mishandled for decades by the U.S. government. The Indian nation raised...
Toll Roads Forced to File Bankruptcy Due to Low Traffic
Over the last several years we have heard stories of wage-earners filing Chapter 13 cases because their mortgage is under water after their adjustable-rate mortgage adjusted in the wrong direction. We have heard of small businessmen filing Chapter 7 liquidations...
Bankruptcy Court’s Contempt Powers Upheld
The United States Ninth Circuit Court of Appeals ratified the use of the federal bankruptcy court 's contempt powers to enforce its orders to a party to cooperate in conveying property located in Mexico. Foreign individuals who purchase property in Mexico within a...
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