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There are some individuals that because of their income and assets may not need to file for bankruptcy.  Bankruptcy is a tool that can help individuals with income and assets, avoid creditor seizure and garnishment. When an individual has minimal assets and no income they may be judgment proof and may not need to file for bankruptcy.

What Does it Mean To Be Judgment Proof?

A person who is judgment proof is a person who does not have any attachable assets or income from which a creditor would be able to collect from.

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The largest municipal bankruptcy is happening just outside of Massachusetts. Central Falls, Rhode Island, a city of 18,000, filed for Chapter 9 bankruptcy protection in Federal Bankruptcy Court. The filing was in the Massachusetts Bankruptcy Court, in Boston. The alleged culprit is the city’s pension plan: they promised much to city retirees and made no plan to pay for it. The city’s annual budget is just over $16 million, and the deficit is over $5 million.

The state of Rhode Island appointed a receiver, Robert Flanders, a bankruptcy lawyer from the law firm Hinckley Allen Snyder. A bankruptcy lawyer in a Chapter 9 case will submit a reorganization plan within 30 days.

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A company that sold craft supplies to Walmart and Jo-Ann has filed bankruptcy: Westrim Crafts. 

Their sales had dropped from about $125,000,000 to $30,000,000 over a five-year period prior to the decision to file a Chapter 11 Bankruptcy.

And that’s a pretty steep drop!

Introduction

On May 23, 2011, Jackson Hewitt Tax Services Inc. (“Jackson Hewitt”) filed a petition for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  This post will look at Jackson Hewitt’s operations, why the company filed for bankruptcy, as well as what Jackson Hewitt hopes to achieve will in bankruptcy.  As is often the case,  much of the information discussed in this post comes from the Debtor’s Declaration in Support of First Day Pleadings (the “Declaration” or “Decl.”).  A copy of the Declaration filed in the Jackson Hewitt bankruptcy is available here for review.

Jackson Hewitt’s Operations

Jackson Hewitt provides tax return preparation services for individual and corporate clients throughout the United States.  The company claims to be the second largest tax return preparer in the United States, having prepared approximately 2.6 million returns in the 2011 tax season.  Decl. at p.

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Here’s an article about bankruptcy statistics for businesses in Maryland.

What I liked about it was the analysis; business owners are realizing that they can close their business and not bother filing a business bankruptcy.

So don’t misinterpret the data; this doesn’t mean that the depression is over!

You think you have problems with a bankruptcy?

Former Mayor Richard Pastrick filed a Chapter 7 Bankruptcy, but it has not been without speed-bumps.

As you can see from this article, Pastrick may have a problem with the Means Test, but worse, it may be that he fails to pass the debt limits for a Chapter 13.

Let’s do that again, because bankruptcy law is confusing, whether it’s in Arizona or Illinois.

To pass muster and get the benefits of a Chapter 7 Bankruptcy, a debtor must pass the Means Test or be subject to an exception to the Means Test, like the Business Debt Exception.

If a debtor doesn’t pass muster under the Means Test, the U.S. Read more…

Well, I’ve heard some people say that the increase in bankruptcy cases since the Depression hit is an indication that the American People have lost their moral fiber.

On the other hand, there are massive increases and decreases in the numbers of bankruptcy cases that are filed every year.

In 2006, for instance, there was a record reduction in the number of bankruptcy cases filed, as compared with 2005.

Does that mean that Americans developed massive additional moral fiber in 2006?

That’s a sort of silly argument, but you’re trapped into that position if you say that an increase in filings demonstrates a decrease in moral quality.


WHO IN THEIR RIGHT MIND WOULD ARGUE THAT FILING BANKRUPTCY IS IMMORAL?

Well, in my experience, there is only two tiny groups of people who take that position; young people with rich grandparents and jobs that pay them more than the median income (early success stories) and older folks who have been lucky so far.

On the other hand, he who lives the longest sees the most. Read more…