In February 2011, crain’s new york business.com reported the founder of New York’s H&H Bagels, filed chapter 11 bankruptcy. The founder like some small business owners in California fell into debt because of payroll taxes. The founder was sentenced to jail in 2010 for failing to pay over $500,000 in payroll taxes. H&H Bagels started in 1972 with its first store at Broadway and West 80th Street on Manhattan’s Upper West Side. The business went into financial troubles from litigation, and the loss of rental income from a tenant who declared bankruptcy.
TMZ.com reported February 2011 that Ashlee Simpson filed for divorce and spousal and child support after a son and 2.5 year marriage to Pete Wentz .
Get advice from a Rinne Legal business attorney with bankruptcy experience before filing chapter 11 bankruptcy or dealing with financial problems from life changes like divorce. Bankruptcy stays on a credit report for up to ten years, and can make it hard for an individual to obtain credit or a small business owner to open another business. Rinne Legal, with staff able to translate in Russian, Korean, German, Spanish, can advise on the chapter 11 bankruptcy process and pre-bankruptcy planning.
A chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. Each court has its own personality from the judges, to the security, to the trustees, to other parties. A debtor in California can view the court calendars ahead of time on the Internet to find out the line number and order in which a case will be called when there is a hearing.
A chapter 11 petition in Northern District and Eastern District California courts may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, when filed by creditors. There are official forms for filing bankruptcy petitions downloadable at www.uscourts.gov/bkforms/index.html. Along with the petition, the debtor files with the California court:
• schedules of assets and liabilities; • schedule of current income and expenditures; • schedule of executory contracts and unexpired leases; • statement of financial affairs.
Executory contracts are ongoing contracts where performance remains due by both parties. If either side stopped performing, the non-performance would be a breach. In bankruptcy, a debtor in Walnut Creek, San Francisco, Fairfield, Sacramento has the right to reject or assume and/or assign executory contracts.
A husband and wife in San Francisco, Sacramento, Fairfield, Walnut Creek, may file a joint petition or individual petitions. If the debtor is an individual, there are additional filings:
• certificate of credit counseling; • copy of any debt repayment plan developed through credit counseling; • evidence of payment from employers, if any, received 60 days before filing; • statement of monthly net income and any anticipated increase in income or expenses after filing; • record of any interest the debtor has in federal or state qualified education or tuition accounts.
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Tags: 11 Bankruptcy, Bankruptcy, Chapter 11, Chapter 11 Bankruptcy
Posted April 16, 2011 by Imogen Lay under Credit Report