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Guide to Bankruptcy Law
Guide to Bankruptcy Law - Trends
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Involuntary filings under Section 303 of the United States Bankruptcy Code (the Code) by creditors trying to force foreign corporate debtors into US bankruptcy proceedings have correspondingly increased. 1 Often, these involuntary filings occur when foreign insolvency proceedings are pending, and the court may thus need to decide whether it can exercise jurisdiction. Thus, courts are required to determine whether to abstain from exercising jurisdiction over an involuntary petition, either by suspension or dismissal, and cede jurisdiction to a foreign court of insolvency pursuant to section 305(a)(1) of the Code. 2 Section ...
Whether voluntary, large IRA or 401k distributions are counted as "income" in the debtor’s means test calculation. I recently met with a client who has a significant amount of debt and is considering filing bankruptcy. We discussed the possible options and whether to file chapter 7 or chapter 13. While discussing her current income with the means test in mind, this debtor presented a very interesting issue about what is “income” and what money must be included in the calculation for the means test. This debtor recently withdrew a large amount from her 401k. ... Read More
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