Archive for the ‘Bankruptcy and Debt Restructuring’ Category

How the Stalking Horse Funding Guides Red Lobster’s Chapter 11 Journey

access_time Posted on: May 22nd, 2024

Where do lobsters go to borrow money? The prawn shop. Or in the case of Red Lobster, the “Stalking Horse”, in its recently filed Chapter 11 Bankruptcy.  In 2003, Red Lobster lost millions of dollars on an all-you-can-eat “Endless Crab” promotion as a result of the unanticipated rising crab prices. Hindsight is 20/20, they say; however, 20 years later, Red Lobster repeated history with an “Ultimate Endless Shrimp” promotion, which has caused the chain to seek the protection of a Chapter 11 Bankruptcy. But have no fear; the Cheddar Bay biscuits will prevail due to the chain’s strategic use of… read more »

Why Bankruptcy Still Beats Debt Consolidation Loans in a High-Interest Environment

access_time Posted on: February 8th, 2024

Interest rates continue to rise, and individuals and businesses grappling with substantial credit card and unsecured debt find themselves navigating treacherous financial waters. Traditionally, debt consolidation programs have offered an alternative to bankruptcy by combining multiple debts into a single, manageable payment. However, as interest rates reach unprecedented highs, the once-reliable lifeboat of debt consolidation is increasingly becoming a sinking ship. As an experienced bankruptcy attorney, I’m now witnessing a shift in the financial dynamics that make bankruptcy a more viable option for those drowning in debt. Here are a few reasons why bankruptcy continues to gain prominence over debt… read more »

Steer Clear: Avoid DUI and Financial Ruin this Holiday Season 

access_time Posted on: December 28th, 2023

Driving Under the Influence (DUI) not only jeopardizes your life and the lives and safety of others – it’s also a financial nightmare with ruinous consequences. Court fees, costs and restitution are higher than you might think – not to mention potentially enormous damages demanded by victims for property damage and personal injury.  When you factor in the potential loss of your driver’s license or employment, the picture of financial devastation becomes very clear. As part of my bankruptcy practice, I help people get a fresh start from debt. Most of the time, these debts involve situations outside of my… read more »

Debunking Bankruptcy Myths: Separating Fact from Fiction

access_time Posted on: November 14th, 2023

Bankruptcy is often surrounded by myths and misconceptions that cloud people’s understanding of this legal process. It is essential to separate fact from fiction to make informed decisions about financial matters. In this article, we aim to debunk the top five most common bankruptcy myths and provide accurate information to help individuals better understand the process. Fact: Bankruptcy laws include exemptions that protect certain assets from liquidation. These exemptions vary by jurisdiction but typically cover essential items such as your home, vehicle, clothing, and necessary household goods. Most individuals who file for bankruptcy can retain their essential assets while finding… read more »

Bankruptcy and Divorce: How Bankruptcy Can Simplify the Divorce Process

access_time Posted on: October 19th, 2023

Divorce is often accompanied by emotional and financial turmoil, with disputes over debt being a common source of contention between spouses. However, in certain situations, filing for bankruptcy can alleviate the burden of debt-related conflicts and make the divorce process less contested and easier. This article explores how bankruptcy can simplify divorce cases by removing the need to fight over debt. 1. Debt Discharge: Filing for bankruptcy allows individuals to discharge or eliminate certain types of debt, depending on the bankruptcy chapter chosen (such as Chapter 7 or Chapter 13). Discharging debts can significantly impact a divorce case by eliminating… read more »

The Importance of Seeking Bankruptcy Counsel Early

access_time Posted on: September 5th, 2023

By Attorney Brent C. Diefenderfer Seeking help from a bankruptcy attorney early in your financial struggles can significantly impact the outcome of your bankruptcy case. An early consultation allows for a more strategic approach to your bankruptcy filing by providing ample time to plan and prepare. Here are a few examples highlighting the benefits of early assistance: 1. Preserving Assets and Maximizing Exemptions: When you consult a bankruptcy attorney in advance, they can guide you on protecting your assets within the confines of bankruptcy laws. By strategically planning asset transfers and utilizing exemptions, you can safeguard your property while obtaining… read more »

Attorney Larry Young Receives 2024 “Lawyer of the Year” Award from Best Lawyers®

access_time Posted on: August 18th, 2023

Attorney Larry Young, Shareholder, and Chair of CGA Law Firm’s Bankruptcy Practice Group, has been honored by Best Lawyers® with the 2024 “Lawyer of the Year” award for his work in Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law in the Harrisburg area. Larry will be featured in the 30th edition of The Best Lawyers in America® for this prestigious achievement. As one of the country’s oldest and most respected peer-review attorney guides, The Best Lawyers in America® complies its list by conducting peer-review interviews. Lawyers must earn inclusion each year. Only a single lawyer in each practice area and community is honored with the annual… read more »

Buying or Selling Real Estate in Bankruptcy

access_time Posted on: July 17th, 2023

Much about bankruptcy law is counterintuitive and often misinterpreted. For example, the benefits of a bankruptcy filing, such as the improvement of credit scores, protection of assets, tax-free debt forgiveness, and the broad ability to qualify for Bankruptcy are often surprising to our clients. When a property is purchased through a Bankruptcy proceeding, it comes with a Federal Court Order declaring the property is free and clear of any liens, encumbrances, or other interests. It provides an added layer of title protection. The order ensures that no potential debts or interests existing before settlement could ever be enforced against the… read more »

Updates on Student Loan Relief

access_time Posted on: August 30th, 2022

*DISCLAIMER: This article is intended to share factual information and is not intended to reflect the author’s or CGA Law Firm’s stance or opinion on Student Loan Relief. This information is not intended to be a substitute for professional legal advice and does not create an attorney-client relationship. You should only accept legal advice from a licensed attorney with whom you have an attorney-client relationship.             On Wednesday, August 24, 2022, President Biden announced another step in his student loan forgiveness plan wherein qualified borrowers will see $10,000 to $20,000 in student loan debt cancellation. Whether… read more »

Are Defamation Damages Dischargeable in Bankruptcy?

access_time Posted on: June 2nd, 2022

The jury issued its verdict yesterday in the Virginia defamation lawsuit between Johnny Depp and his ex-wife Amber Heard. After three weeks of trial, the jury concluded that Ms. Heard’s statements were defamatory. Yesterday’s verdict has left many people asking whether damages awarded in a defamation case are dischargeable in bankruptcy.  Ordinarily, when a person files bankruptcy and receives a discharge, this means that the bankrupt party’s debts are eliminated and do not need to be repaid. Dischargeability depends upon what else the jury concludes. The Bankruptcy Code says that debts based on liability “for willful and malicious injury by… read more »