How Long Does a Chapter 11 Bankruptcy Proceeding Take?

November 29th marks the one-year anniversary of American Airlines’ Chapter 11 bankruptcy filing. This has been the largest ever bankruptcy proceeding of a U.S. airline, and over 12 months the company has undergone various steps as part of its restructuring.

For a large company like American, the bankruptcy process is extensive and involves many moving parts. The company had to consider how to best allocate its time and effort; what areas get a piece of an already tight budget? They also needed to work with unions and worker pensions and contracts alongside the guidelines and goals set up during their bankruptcy and enforced by their unsecured creditors.  

Why should I file for bankruptcy before the New Year?

With the New Year just few weeks away, what is your 2013 resolution? Some people want to lose weight, quit a bad habit, or do things to make their lives better. So how about taking a serious look at your current financial situation and seeing how you can improve it? If you are one of the many thousands of Americans facing mounting debt, this is a smart step to take. Our law office does all we can to help individuals get their lives back on track, and as a way to get even more people to think seriously about how bankruptcy can help them, we are offering a special incentive: those who use our firm to file for bankruptcy before December 31, 2012 will have their $306 bankruptcy filing fee waived if they mention this offer.

How can a business effectively navigate a Chapter 11 bankruptcy when unions are involved?

After two bankruptcies and a series of failed talks with unions, Hostess Brands stopped production of its famous sweets and breads and will sell off its assets to the highest bidder. The American creator of classic junk food items such as the Twinkie, Sno Ball, and Ho Ho shut down its plants on Friday and plans to begin selling off its brands.

Hostess claims that all this occurred after labor contract talks fell through and union workers went on strike to protest proposed wage and benefit cuts. However, members of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) union tell a very different story.

How long do you have to wait to qualify for a mortgage after bankruptcy?

 The New York Times called upon Queens bankruptcy attorney Bruce Feinstein, Esq. for his expertise and insight for their recent article, “Mortgages – Life After Bankruptcy.” Journalist Vickie Elmer interviewed Mr. Feinstein for the piece, which examines some common myths surrounding life after bankruptcy and obtaining a mortgage after a Chapter 7 or Chapter 13 filing.

What are some common myths surrounding bankruptcy?

We have had experiences with clients who come to the office feeling like they are alone – they are ashamed to consider filing for bankruptcy because of the misconceptions surrounding debt relief. And it is common to hear someone dismiss those who go through bankruptcy as being frivolous spenders who are bad with money and are somehow taking advantage of the legal system. But this is the wrong way to see bankruptcy. Let’s look at a couple secrets surrounding debt relief that will help change the way we view it.

Advantages to selling off assets during a bankruptcy

Digital Domain Media Group accepted a bid by a joint venture spearheaded by Beijing Galloping Horse Film & TV Production Co Ltd and Reliance MediaWorks to purchase over $30.2 million in assets as part of the company’s Chapter 11 bankruptcy proceedings. The sale is scheduled to be finalized by both parties and approved by the bankruptcy court. This case offers an example of selling off assets during a bankruptcy in order to repay debts to creditors.

How does Chapter 11 Bankruptcy affect businesses?

Kodak is making executive changes and plans to cut 1,000 more jobs from an already shrinking staff by the end of 2012 as it prepares to exit Chapter 11 Bankruptcy in early 2013. It filed for bankruptcy protection on January 19, 2012.