Ch. 7? Ch. 11? In Arizona, best not to make decision alone
On behalf of Ellett Law Offices , P.C. posted in 1. Chapter 7 on Monday, June 11, 2012
When someone in Arizona is faced with a situation of financial insecurity and growing debt, it can often be difficult to determine what the best way to respond. For many Arizona residents in this situation, some form of personal bankruptcy, whether Chapter 7 or Chapter 13 may be the answer to regaining stable financial footing. For Arizona businesses, the option might be Chapter 11. Different forms of bankruptcy provide different options for individuals, and each form may suit different circumstances.
Ex-NFL player Jamal Lewis filed for Chapter 11 bankruptcy in April. His listed debts totaling $10.6 million and assets estimated at $14.5 million. The retired player is said to have made significant off-the-field investments in trucking, hotels, theme parks and resort projects which may have contributed to his financial insecurity.
Recently, the trustee of the player’s case sought to have Lewis’ Chapter 11 bankruptcy case converted to a Chapter 7 filing. This would allow the sell-off of assets as a means of repaying debts to Lewis’ creditors. It is not said what specifically prompted this change, though it appears to have had something to do with Lewis failing to provide required paperwork and failing to appear for a scheduled interview with court officials.
What this story shows is that it’s important to consult with an experienced attorney to determine the best filing options if bankruptcy is being considered and to be sure that all the steps are being followed as required. It may be that Chapter 7 bankruptcy is a form of personal bankruptcy that may suit Arizona individuals. Such a move can leave the filer free to dissolve assets to resolve debt. They may then be in a position to maintain a stable foundation that allows them to rebuild their lives and finances.
Source: Reuters, “Ex-NFL player Jamal Lewis’ bankruptcy hearing rescheduled,” David Beasley, June 5, 2012
Tags: Chapter 7, bankruptcy, bankruptcy protection