Commercial Collections Blog

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy

When a commercial-debtor files for bankruptcy, first it must determined if the filing will place the debtor within the “current monthly income guidelines” — as determined by the state of the filing.   A debtor planning to file Chapter 7 must demonstrate the debtor doesn’t have sufficient earnings for a Chapter 13 bankruptcy.

The process of determining a debtor’s income in is known as “The Means Test”. This test uses the debtor’s income during the six months leading up to the bankruptcy filing (the debtor’s “current monthly income”).

Debt Collection News

  • NY AG Asks Court To Force Debt Collector To Hand Over Docs

    January 18, 2018
    Law360, New York (January 17, 2018, 10:45 PM EST) -- The New York Attorney General's Office on Wednesday asked a New York federal court to force a debt collection company and its owner to turn over financial documents, business records and other information that the agency is seeking in its suit ...
  • Lawmakers grapple with how to deal with Maine students who can't pay for lunch

    January 17, 2018
    She said it is not uncommon for schools or districts to end fiscal years with $7,000 or more of unpaid school lunch debt. King said her organization supports students being fed no matter what but needs guidance from the Legislature about debt collection, especially from families who seem able to pay but ...
  • ECB's Nouy 'inflexible' in meeting with Italian banks – sources

    January 17, 2018
    CEO Carlo Messina said on Wednesday the bank agreed with the need to speed up the reduction of bad debts. Other banks are also considering selling their debt collection units together with some of their bad debts, industry and financial sources have said. Analysts expect lenders to book more ...