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A proof of claim is a document that a creditor prepares and files with the Bankruptcy Court that sets forth the creditor’s claim and right to receive a distribution in a bankruptcy case. To be effective, the proof of claim must be properly prepared, conform to the Court’s official form, and as necessary, contain adequate supporting information. The purpose is to provide notice of a creditor’s claim to parties in the case. In many bankruptcy proceedings, a creditor will not receive a distribution without having properly and timely filed claim.
Consequences of Not Filing a Proof of Claim
A creditor
Continue Reading Filing a proof of claim in a bankruptcy case

A proof of claim is a document that a creditor prepares and files with the Bankruptcy Court that sets forth the creditor’s claim and right to receive a distribution in a bankruptcy case. To be effective, the proof of claim must be properly prepared, conform to the Court’s official form, and as necessary, contain adequate supporting information. The purpose is to provide notice of a creditor’s claim to parties in the case. In many bankruptcy proceedings, a creditor will not receive a distribution without having properly and timely filed claim.
Consequences of Not Filing a Proof of Claim
A creditor
Continue Reading Filing a proof of claim in a bankruptcy case


In Arizona, a creditor can seek a receivership to “protect and preserve property or the rights of parties therein” usually in relation to an operating business that is having financial difficulties, where assets are being wasted, and/or where there are concerns regarding fraud. Ariz. Rev. Stat. Ann. § 12-1241.  A receiver is appointed by a court to temporarily possess property belonging to a creditor (e.g. accounts receivable).  Typically, a receiver will secure control of the business’s premises, inventory assets, recover property, and collect accounts receivable and rents.

A single creditor can seek a receivership, rather than the three typically required
Continue Reading Creditor receivership in Arizona


In Arizona, a creditor can seek a receivership to “protect and preserve property or the rights of parties therein” usually in relation to an operating business that is having financial difficulties, where assets are being wasted, and/or where there are concerns regarding fraud. Ariz. Rev. Stat. Ann. § 12-1241.  A receiver is appointed by a court to temporarily possess property belonging to a creditor (e.g. accounts receivable).  Typically, a receiver will secure control of the business’s premises, inventory assets, recover property, and collect accounts receivable and rents.

A single creditor can seek a receivership, rather than the three typically required
Continue Reading Creditor receivership in Arizona


Chapter 11 bankruptcy enables businesses and individuals to reorganize or liquidate their assets in a way that is more flexible than in Chapter 7 or 13 bankruptcy proceedings.  There are numerous tools at the disposal of a Chapter 11 bankruptcy filer; however, the most significant is the ability to restructure debts through a plan of reorganization.  Through a Chapter 11 bankruptcy proceeding, a Chapter 11 plan can cure loan defaults, significantly modify secured debts and payment terms, modify interest rates, strip liens from property, and pay taxes over time and without default interest and penalties.
Unless otherwise ordered, a bankruptcy
Continue Reading What is Chapter 11 bankruptcy?


Chapter 11 bankruptcy enables businesses and individuals to reorganize or liquidate their assets in a way that is more flexible than in Chapter 7 or 13 bankruptcy proceedings.  There are numerous tools at the disposal of a Chapter 11 bankruptcy filer; however, the most significant is the ability to restructure debts through a plan of reorganization.  Through a Chapter 11 bankruptcy proceeding, a Chapter 11 plan can cure loan defaults, significantly modify secured debts and payment terms, modify interest rates, strip liens from property, and pay taxes over time and without default interest and penalties.
Unless otherwise ordered, a bankruptcy
Continue Reading What is Chapter 11 bankruptcy?


Bankruptcy can be the end of a creditor’s attempts to collect a debt.  Yet, often a bankruptcy creditor will work to take possession of collateral or to receive a distribution through the bankruptcy case.  Since a bankruptcy filing triggers an automatic stay that requires strict adherence, it is important that a creditor work with a lawyer if it intends to pursue a claim in the bankruptcy case.  Among the numerous options available to them, a bankruptcy creditor will often pursue the following:

The 341 meeting of creditors is usually scheduled about 30 days after the bankruptcy filing.  While time is
Continue Reading Rights that a bankruptcy creditor can pursue


Bankruptcy can be the end of a creditor’s attempts to collect a debt.  Yet, often a bankruptcy creditor will work to take possession of collateral or to receive a distribution through the bankruptcy case.  Since a bankruptcy filing triggers an automatic stay that requires strict adherence, it is important that a creditor work with a lawyer if it intends to pursue a claim in the bankruptcy case.  Among the numerous options available to them, a bankruptcy creditor will often pursue the following:

The 341 meeting of creditors is usually scheduled about 30 days after the bankruptcy filing.  While time is
Continue Reading Rights that a bankruptcy creditor can pursue


Individuals filing a chapter 7 bankruptcy petition are subject to the bankruptcy means test to determine whether an individuals’ income is sufficiently low enough to qualify for chapter 7 bankruptcy relief.  Where an individual’s income is deemed too high under the means test, a chapter 7 bankruptcy filing may not be an option, and the individual may need to consider a repayment plan chapter of bankruptcy (e.g. chapters 13 or 11).

Yet, even when an individual does not qualify under the means test, a chapter 7 bankruptcy may still be an option if there are special circumstances in the case
Continue Reading Recent Cherrett case and bankruptcy means test requirements


Individuals filing a chapter 7 bankruptcy petition are subject to the bankruptcy means test to determine whether an individuals’ income is sufficiently low enough to qualify for chapter 7 bankruptcy relief.  Where an individual’s income is deemed too high under the means test, a chapter 7 bankruptcy filing may not be an option, and the individual may need to consider a repayment plan chapter of bankruptcy (e.g. chapters 13 or 11).

Yet, even when an individual does not qualify under the means test, a chapter 7 bankruptcy may still be an option if there are special circumstances in the case
Continue Reading Recent Cherrett case and bankruptcy means test requirements

As with most things in life, when hiring a lawyer, you typically get what you pay for.  Hiring a Chapter 7 bankruptcy lawyer that provides discount fees can often be the most expensive mistake that an individual can make in the bankruptcy process.  Discount fees are often provided by lawyers that have not received training, lack meaningful experience, do not have the time or desire to devote time to your case, or that practice bankruptcy law only part-time.  Bankruptcy law is full of complexities that, if not properly foreseen and planned for, can have devastating results.

In my experience in
Continue Reading In choosing a Chapter 7 bankruptcy lawyer, avoid this expensive mistake

As with most things in life, when hiring a lawyer, you typically get what you pay for.  Hiring a Chapter 7 bankruptcy lawyer that provides discount fees can often be the most expensive mistake that an individual can make in the bankruptcy process.  Discount fees are often provided by lawyers that have not received training, lack meaningful experience, do not have the time or desire to devote time to your case, or that practice bankruptcy law only part-time.  Bankruptcy law is full of complexities that, if not properly foreseen and planned for, can have devastating results.

In my experience in
Continue Reading In choosing a Chapter 7 bankruptcy lawyer, avoid this expensive mistake


As a general rule, managers and directors of a financially troubled business should manage the business in good faith and work to maximize the business’s value for all of its constituents. In an effort to maximize the business’s value, managers and directors should closely review the financial condition of the business before taking any action that may adversely affect owners or creditors.
Anticipating enhanced scrutiny when a business is facing financial difficulty, managers and directors should take extra steps to ensure that they follow procedures to make informed decisions that serve a proper purpose for the business. To avoid potential
Continue Reading Determination of business insolvency


As a general rule, managers and directors of a financially troubled business should manage the business in good faith and work to maximize the business’s value for all of its constituents. In an effort to maximize the business’s value, managers and directors should closely review the financial condition of the business before taking any action that may adversely affect owners or creditors.
Anticipating enhanced scrutiny when a business is facing financial difficulty, managers and directors should take extra steps to ensure that they follow procedures to make informed decisions that serve a proper purpose for the business. To avoid potential
Continue Reading Determination of business insolvency


Where a business is acting as a debtor-in-possession (debtor) in a Chapter 11 bankruptcy case, to confirm a plan of reorganization, the debtor must provide a method for creditors to capture any value from the debtor’s pre-bankruptcy transfers that may be avoidable under the Bankruptcy Code.

Prior to its bankruptcy filing, Val-Mid operated two gas station/convenience stores in Arizona. On June 14, 2013, Judge Hollowell, with the United States Bankruptcy Court for the District of Arizona, denied Val-Mid’s Chapter 11 plan of reorganization and converted the case to a Chapter 7 to be liquidated.  In re Val-Mid Assocs., L.L.C., 2013
Continue Reading Pre-bankruptcy transfers can cause a business’s reorganization to fail


Where a business is acting as a debtor-in-possession (debtor) in a Chapter 11 bankruptcy case, to confirm a plan of reorganization, the debtor must provide a method for creditors to capture any value from the debtor’s pre-bankruptcy transfers that may be avoidable under the Bankruptcy Code.

Prior to its bankruptcy filing, Val-Mid operated two gas station/convenience stores in Arizona. On June 14, 2013, Judge Hollowell, with the United States Bankruptcy Court for the District of Arizona, denied Val-Mid’s Chapter 11 plan of reorganization and converted the case to a Chapter 7 to be liquidated.  In re Val-Mid Assocs., L.L.C., 2013
Continue Reading Pre-bankruptcy transfers can cause a business’s reorganization to fail