A rare Chapter 9 case is pushing an unexplored portion of bankruptcy law with a blunt, unconventional style that is being applied in a lawsuit that threatens to change the landscape of municipal bond investments. Jefferson County, Alabama, filed for bankruptcy in June 2012, trying to resolve and restructure its municipal debt. District Judge Kristi DuBose put the case on hold until the Supreme Court decides whether Alabama law allows municipalities with bond debt to file for bankruptcy.
A group of city employees, fearful for their pensions, went to court to block the bankruptcy filing, arguing that Alabama must have bonds eligible for bankruptcy protection under the law. Bankruptcy Judge Thomas Bennett, in an opinion interpreting the Alabama Code, rejected Duboe's interpretation of the state's Chapter 9 bankruptcy law and ruled that Jefferson County was indeed entitled to apply for Chapter 9. But unhappy with the information provided to him by attorneys about Alabama state rules that prevent counties and cities from filing for bankruptcy, Judge Bennett sent his legal team to the Montgomery Library to dig out a dense 28-page decision that allowed the case to proceed. He was forced to interpret the fine print of municipal accounting rules in a legal dispute based on the idea that the county must make bondholders pay for most of its bankruptcy costs.
In the case of Pritchard, some creditors dismissed the action on the same grounds as in the case of Prichard.
On May 10, 2010, Ambac filed a lawsuit in the District Court of the State of Nevada against Prichard, his wife and their children. A criminal case is a case in which someone is charged with a public offence. This is handled by the California General Court, which serves as the U.S. District Court for the Southern District of California in Los Angeles County.
bankruptcy according to Chapter 11, also known as reorganization bankruptcy), the debtor retains control over his business and They are subject to the supervision and jurisdiction of the Court. In Chapter 11 bankruptcy proceedings, the courts require management to make decisions on the management of a debtor's assets, assets and liabilities, as well as on the sale of debts and assets.
For example, a bankruptcy court cannot appoint a trustee to run a municipality or force secured creditors to meet their claims. Accordingly, bankruptcy courts will not be competent to deal with payments made by municipal debtors to professionals.
Once you have gathered the necessary paperwork, meet with a Prichard bankruptcy attorney to be guided and advise on what is best suited to your specific situation. Ask for additional guidance or contact an attorney who is handling your bankruptcy case for more information about Alabama's bankruptcy laws.
If you are considering your own case and want to learn more about situations that may arise prior to filing, contact Prichard Bankruptcy Lawyers for more information on how to preserve your property and pay off your debts. Provide detailed information on the expected hearing of 341 people and a list of the most common bankruptcy filings in the state of Alabama.
Several weeks after filing for bankruptcy, you must attend a hearing of 341 people, also called a creditors "meeting. The receiver appointed to handle your case will chair the meeting and may ask questions about the information you provide on your bankruptcy form.
Although Chapter 9 contains provisions of the Bankruptcy Code requiring the appointment of an official creditors "committee, it does not contain a provision in the Court of Appeal requiring debtors to pay the full amount of their outstanding debt to the bankruptcy trustee's committee.
However, the current credit rating of Aaa suggests that credit markets remain closed. Chapter 9 of the Bankruptcy Code recognizes reservation powers, but limits the bankruptcy court's ability to regulate the transfer of assets and liabilities from one creditor to another in a bankruptcy case. These restrictions prevent bankruptcy courts from taking certain measures in Chapter 9 cases that they can take in other bankruptcy cases. Pensioners have a limited number of recourse in the event of Alabama bankruptcy.
If you have questions about your personal financial situation and want to know whether the insolvency chapter is right for you, call one of our offices and set up a free consultation. There are some additional papers you will need to file after filing your bankruptcy petition, but you may never have to worry about that. Sometimes, things emerge at the end of bankruptcy proceedings, such as the need to deal with a new unexempted property that has been discovered, or dealing with creditors who try to recover claims that have been forfeited in bankruptcy. You can also contact our personal bankruptcy attorney under Chapter 7 for more information.
Depending on the complexity of your situation, there are places where you need advice and help from a bankruptcy lawyer. Our lawyers will represent you and help you protect your rights and freedoms.