United States Bankruptcy Courts Federal courts have exclusive jurisdiction over bankruptcy cases. Bankruptcy cases cannot be filed in state court. Each of the 94 federal judicial districts handles bankruptcy matters. The primary purposes of the law of bankruptcy are: (1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has property available for payment
They will liquidate all his assets to satisfy the debt.
Originally posted by JayJayDeanIf he does file bankruptcy, would the Dolphins be considered a secure or an unsecured creditor? If they're unsecured, they're not going to see very much of that money after all.
The scenario put forth on ESPN radio a few weeks ago was that they were unsecured, and that they'd get basically nothing from Ricky if he declares bankruptcy.
Originally posted by ZeruelThey will liquidate all his assets to satisfy the debt.
Liquidate all his assets...hmmm...what's the going rate on a dime bag? They'll make a fortune!
Hey Matt, since the Diva Contest is over, why not send RVD off with Ricky and Nate Newton on a pot-seeking adventure to raise money? It writes itself!....or, in another, more accurate way, you write it yourself.
Originally posted by BigVitoMarkTSN reported on Friday night that if Williams does file for bankruptcy he would become a free agent. Does anyone know the ins-and-outs of that?
I couldn't find anything about that on TSN.ca, ESPN.com, nor NFL.com
Maybe by declaring bankruptcy he will be absolved of any current contracts?
Originally posted by Roy.The scenario put forth on ESPN radio a few weeks ago was that they were unsecured, and that they'd get basically nothing from Ricky if he declares bankruptcy.
This isn't the best place to learn bankruptcy law, but we just covered that in my business class tonight.
This is all from my book, "Understanding Business", 7th edition, copyright 2005 by Nickles, McHugh, & McHugh. www.mhhe.com/ub7e
Under Chapter 7, liquidation, a debtor can retain up to $7,500 of equity in a home ($15,000 for a married couple); $1,200 of equity in an automobile; up to $4,000 in household furnishings, apparel, and musical instruments; and up to $500 in jewelry.
When the sale of assets are over, the resulting cash is divided among creditors, including the government.
Chapter 7 stipulates the order in which the assets are to be distributed among the creditors. First, creditors with secured claims receive the collateral for their claims or repossess the claimed asset (such as an automobile). Then unsecured claims are paid in this order: 1. Costs involved in the bankruptcy case. 2. Any business costs incurred after bankruptcy. 3. Wages, salaries, or commissions (limited to $2,000 per person). 4. Contributions to employee benefit plans. 5. Refunds to consumers who paid for products that weren't delivered (limited to $900 per claimant). 6. Federal and state taxes.
The remainder (if any) is divided among unsecured creditors in proportion to their claims.
Chapter 11, reorganization, is really for businesses.
Chapter 13, repayment, permits individuals, including small-business owners, to pay back creditors over a period of three to five years. Chapter 13 proceedings are less complicated and less expensive than Chapter 7 proceedings. The debtor files a proposed plan for paying off debts to the court. If the plan is approved, the debtor pays a court-appointed trustee in monthly installments as agreed on in the repayment plan. The trustee then pays each creditor. In bankruptcy legislation proposed by the U.S. Congress in 2002, more debtors would have been required to file bankruptcy under Chapter 13.