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Airline Bankruptcy Cases

During the first half of April 2008 three airlines closed and filed for bankruptcy. Skybus, ATA and Aloha Airlines all closed, citing a worsening economy and fuel prices as the reasons for their financial difficulties. These airlines could not turn a profit with the cost of fuel, repairs, upkeep, personnel and credit payments exceeding the amount of income from passengers traveling and other revenue sources by a large margin. The bankruptcy lawyers for these companies completed their filings at the beginning of the second quarter in 2008. Following bankruptcy law was a viable option for these airlines, as it is for many businesses and individuals who don’t succeed and need to declare that their financial plans did not work out. In the cases of these airlines, according to their bankruptcy lawyers, the legal benefit of incorporation removed the direct loss and hardship of the owners and partners of these companies…
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A Washington DC and Maryland Bankruptcy Lawyer Talks About Avoiding Liens on Household Goods

Finance companies offering short-term loans often require borrowers to pledge personal property as collateral for the loan. When you pledge property you already own as collateral, you grant the finance company a security interest in it, which means the finance company can demand that you turn over the property if you default on the loan. This type of security interest is known as a non-purchase money security interest, because the loan was not made for the purchase of the collateral. Most finance companies do not actually want your property, but they know the mere threat of taking it might be enough to get you to pay. When you file for bankruptcy, you have the opportunity to eliminate non-purchase money security interests in your personal property through a process known as lien avoidance. If you have pledged any of the following types of property as collateral for a loan, you may…
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Retail Bankruptcy

A retail company with stores in 49 states filed for bankruptcy under Chapter 11, putting several lawsuits against the chain on hold. The company owed some $122 million on a loan to a bank and had claims against it from three lawsuits. Each of the lawsuits were put on hold during the bankruptcy. The retailer under the terms of the bankruptcy agreed to pay $11 million to a venture capital firm, to sell 10 stores and for the venture capital firm to assume the three claims against the retailer. One of the lawsuits on hold was a $100,000 case in which a man tripped in a third level parking unit and fell in a hole. He sustained broken bones and sprains. The second case involves a woman who says she fell in a store parking unit and had a severe arm injury. The final lawsuit involved a large display poster…
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How a Chapter 13 Can Help You Recover a Repossessed Vehicle

Chapter 13 bankruptcy is a powerful tool when dealing with secured debts like a car loan. You can use a Chapter 13 case to pay your car in full and stop repossession; but what do you do if the lender has already taken your car? A Maryland bankruptcy lawyer or a Washington DC bankruptcy lawyer may be able to help you get your car back. When you buy a car and finance the purchase, the bank lends you the money in exchange for a lien on your car. That means that if you default on your payments, the lender can repossess the car, which means it can take the car from you. The lender can then sell the car at auction to satisfy the debt. Bankruptcy automatically stops all collection activity, including repossessions. As soon as you file your Chapter 13 case, the Bankruptcy Code prohibits the car lender from…
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