bankruptcy petition

Sham Burger King Franchisee Bankruptcy Stuns, but Avoids Harm

A “fraudulent” bankruptcy petition submitted on behalf of a major Burger King franchisee caught lawyers by surprise but showcased the ability of bankruptcy courts to quickly root out shady conduct.

Carrols Corp., the largest Burger King franchisee in the US, had at least five bankruptcy petitions submitted in its name over the past week by an individual with an apparent history of frivolous legal actions. The company quickly said the bankruptcy petitions were fake, and its general counsel said it’s “not a financially troubled company.”

Though abuse of the bankruptcy system isn’t unheard of, the Carrols case was notable for the audacity of the filer, who could face ramifications for his actions.

“I feel like I’ve seen some pretty insane things, but this is new to me,” said Stacy A. Lutkus, a McDermott Will & Emery restructuring partner who worked as a clerk to the judge who oversaw the Lehman Brothers bankruptcy.

Faking Bankruptcy

The Carrols petitions, filed under Chapter 15 of the US bankruptcy code, appear to have been mailed in by Robert W. Johnson of Buffalo, N.Y. Johnson appears to have a prolific history of submitting pro se lawsuits, including against Donald Trump, Meta Platform Inc.‘s Facebook,

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February 16, 2024 by ATTORNEY

Rudy Giuliani says he’s bankrupt after $148 million court loss
  • Election workers’ attorney says bankruptcy “maneuver” won’t succeed.

Former New York Mayor Rudy Giuliani filed for bankruptcy Thursday after a jury hit him with more than $148 million in damages for defaming two Georgia election workers who received death threats after he falesly accused them of fraud in the 2020 presidential election.

“The filing should be a surprise to no one,” said Ted Goodman, a political adviser to Giuliani.

“No person could have reasonably believed that Mayor Rudy Giuliani would be able to pay such a high punitive amount,” Goodman said. “Chapter 11 will afford Mayor Giuliani the opportunity and time to pursue an appeal, while providing transparency for his finances under the supervision of the bankruptcy court, to ensure all creditors are treated equally and fairly throughout the process.”

On Wednesday, U.S. District Judge Beryl Howell opened the gate for the election workers, Ruby Freeman and her daughter Shaye Moss, to go after the money quickly, saying that Giuliani would likely try to “conceal and dissipate” his assets to avoid paying. Giuliani had repeatedly failed to comply with Howell’s instructions in the defamation case, and he has mounting debts to lawyers and others, Howell said.

In his bankruptcy

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December 25, 2023 by ATTORNEY

What is Chapter 7 bankruptcy?

Filing Chapter 7 bankruptcy is a serious financial decision for individuals who have large amounts of debt they likely won’t ever be able to repay. 

Though filing for Chapter 7 ultimately gives you a fresh financial start by eliminating debt, it may come with serious consequences, including negatively impacting your long-term personal credit health and the loss of valued personal possessions.

What is Chapter 7 bankruptcy? 

Chapter 7 bankruptcy is liquidation bankruptcy that will discharge most of your unsecured debts. 

“Among other actions, a bankruptcy court will issue a temporary stay on collection activities, so collectors will stop calling and wage garnishments will cease,” said Derek Jacques, bankruptcy attorney with The Mitten Law Firm in Southgate, MI.

Types of collection activities that may be halted temporarily include evictions, garnishments and repossessions.

“With Chapter 7, the court will take ownership of your assets, and assign a trustee to oversee the proceedings,” Jacques said. “The trustee will review your finances, debts, income, and assets.”

The court may sell non-exempt property to help pay back your creditors and also run a meeting between you and your creditors where you’ll answer questions about your filing. 

Certain types of debts can be discharged In Chapter

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November 23, 2023 by ATTORNEY

Bankruptcy Unveiled: Demystifying the Process and Exploring the Road to Financial Resurgence

Bankruptcy is a legal process that can help individuals and businesses struggling with overwhelming debt to regain control of their finances.

While the word “bankruptcy” often carries negative connotations, it is essential to understand that it is not the end of the road, but rather a fresh start towards financial resurgence. In this article, we will demystify the bankruptcy process, shedding light on its different types, procedures, and the road to financial recovery.

Understanding Bankruptcy: A Fresh Start

Bankruptcy, at its core, is a legal mechanism designed to provide debtors with a fresh financial start when they are unable to repay their debts. It offers protection and relief from creditors, allowing individuals and businesses to reorganize their finances or obtain debt discharge, depending on the bankruptcy chapter they file under.

Chapter 7 Bankruptcy: Liquidation and Debt Discharge

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” involves the sale of non-exempt assets to repay creditors. However, it’s important to note that not all assets are subject to liquidation, as certain exemptions are in place to protect necessary items like a primary residence, personal belongings, and retirement accounts. Once the liquidation process is complete, eligible debts are typically discharged,

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August 11, 2023 by ATTORNEY

South Loop Hotel Owners File for Bankruptcy

Owners of the Chicago South Loop Hotel have filed for Chapter 11 bankruptcy protection as their property faces foreclosure, much to the dismay of its loan servicer.

Rialto Capital Advisors initiated foreclosure proceedings in Illinois federal court in September, alleging nonpayment on a $6.8 million commercial mortgage-backed securities loan initially issued in 2013 that is set to mature in 2028. Attorneys for the 231-room hotel’s owners, Louis Dodd and Vickie White, filed a bankruptcy petition on Feb. 27, court records show.

Attorneys for Rialto responded March 8 by asking the court to dismiss the bankruptcy petition, calling it improper and in bad faith. Rialto’s filing claims Dodd and White made the bankruptcy filing just hours after both parties in the foreclosure case had agreed upon a receiver for the property following almost three months of negotiations and thus prevented the order appointing the receiver from being entered in court, according to public records.

Additionally, the motion to dismiss claims that the bankruptcy filing was made without proper corporate authorization and that Dodd and White have no ability to confirm a reorganization plan for Chapter 11 bankruptcy. Rialto did not respond to a request for comment. An attorney for the

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March 29, 2023 by ATTORNEY
April 2024
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