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SkyMall Just Filed for Chapter 11 Bankruptcy — But What Exactly Does That Mean?

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chapter 11 bankruptcy timelineBarely a month into the new year, American travelers were confronted with some sad news: SkyMall, the company that provided paper catalogs, which were filled with infamously useless products and which were placed in every airplane seat for over 25 years, had just announced that it plans on filing for bankruptcy.

How In-Flight Internet Brought SkyMall Into Bankruptcy

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chapter 7 bankruptcy The company that produces the SkyMall in-flight shopping catalogs carried on most U.S. airlines has filed for bankruptcy protection, citing a “funding crisis.”

SkyMall, which has long been found in the seat-back pockets of most airplanes, is known for entertaining bored air travelers with a vast array of niche, sometimes bizarre, products ranging from mini clap-on alarm clocks to garden zombies.

Amid Falling Prices, Canadian Oil Company Turns to Bankruptcy

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Chapter 11 bankruptcy timelineIn the midst of a crumbling oil industry, a Canadian oil exploration company has sought out bankruptcy protection in its home country with an insolvency filing.

According to the Wall Street Journal, Southern Pacific Resource Corp. filed under Canada’s Companies’ Creditors Arrangement Act, a form of bankruptcy protection similar to the debt restructuring plan of the Chapter 11 bankruptcy timeline in the U.S.

Three Facts Everyone Needs to Know About Bankruptcy and Student Loans

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chapter 7 bankruptcy

Student debt is one of the most pervasive forms of debt in the country. When the average college graduate enters the working world with $28,400 in debt, there’s no doubting that having this much debt can be crippling to many people.

But student loans are a unique type of debt — and as a result, there are unique rules that apply to student debt when it comes to bankruptcy law. For some extra help with filing bankruptcy, here are three of the most important things you need to know about the role of student debt in a bankruptcy:

Unfortunately, student debt can’t be discharged in a bankruptcy

If you were hoping to get rid of all your debt by seeking bankruptcy help from a Chapter 7 bankruptcy attorney, you may be disappointed to learn that there are a few types of debt that can’t be discharged during a bankruptcy. Student loans are one of these debts. There are certain cases in which you can discharge your student debt, but this involves proving that you suffer from “undue hardship,” which is extremely difficult to prove and rarely allowed.

You can most likely get approved for a student loan after filing bankruptcy

Not everyone goes to college straight out of high school. And if you have filed bankruptcy with a Chapter 7 bankruptcy attorney and are now looking to go back to school, you’re likely wondering if you’ll be able to get financial assistance through a student loan. While a bankruptcy filing stays on your credit report for 10 years after your debt is discharged, you’re protected by federal law to be eligible for a student loan.

With Chapter 13 bankruptcy, student debt’s role becomes more complicated

One big difference between Chapter 7 and 13 bankruptcy is the role of student debt. Unlike Chapter 7 bankruptcies, a Chapter 13 bankruptcy involves the establishment of a debt repayment plan. And in a Chapter 13 bankruptcy, your student loans will be considered nonpriority unsecured debts, meaning you aren’t required to pay them off entirely over the course of your debt repayment period. In addition, a Chapter 13 bankruptcy might even delay your student loan payments, helping you get back on your feet financially before you have to make payments again.

Have any other questions for us regarding bankruptcy and student loans? Ask us anything and feel free to share your thoughts in the comments below.

Why This Former Wall Street Executive Had His Bankruptcy Thrown Out of Court

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Chapter 7 Bankruptcy

A prominent former Wall Street trader who was imprisoned in 2005 for embezzling $43 million from Merrill Lynch and Co. has had his bankruptcy thrown out of court by a judge who accused him of repeatedly lying to the court.

According to a January 21 Wall Street Journal article, Judge Robert Gerber in U.S. Bankruptcy Court in Manhattan, denied Daniel Gordon the ability to rid himself of tens of millions in debts using the Chapter 7 bankruptcy timeline. In his January 13 ruling, Judge Gerber alleged that Gordon’s continued lies “helped destroy his credibility and, quite frankly, insulted the intelligence of the court.”

Gordon, who first filed for Chapter 7 in 2009, has been plagued with legal and financial troubles since being released from prison in 2007. He has been accused of fraudulently hiding assets by a trustee collecting money for his creditors, and has been sued in bankruptcy court by both his ex-wife and a former NBA player who borrowed a loan from him.

According to the Wall Street Journal, Gordon hid more than $3.1 million in assets from the bankruptcy court in his filing. Considering the fact that Chapter 7 bankruptcies require an individual to surrender their assets to pay off the discharged debts, it appeared that he may have been trying to salvage these assets. This omission was a “cavalier disregard” for the disclosure requirements and obligations of filing bankruptcy, Judge Gerber said.

In the aftermath of Judge Gerber’s ruling, Donald David, one of Gordon’s Chapter 7 bankruptcy attorneys, said his client intends to “vigorously appeal” the court’s decision to a district court, the Wall Street Journal reports, arguing that there were facts favoring Gordon that Judge Gerber’s decision didn’t reflect.

What are your thoughts on this story? Have any questions for us on how to file bankruptcy with a local bankruptcy attorney? Share what’s on your mind and ask us anything in the comments below.