Comments on: Drowning in Mortgage Debt: Is There a Get Out Of Jail Card? http://www.legalfish.com/TheDailyTackle/2010/02/01/drowning-in-mortgage-debt-is-there-a-get-out-of-jail-card/ Law, News, and Opinion Thu, 19 Jan 2012 03:52:21 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Milda Henby http://www.legalfish.com/TheDailyTackle/2010/02/01/drowning-in-mortgage-debt-is-there-a-get-out-of-jail-card/#comment-1077 Milda Henby Tue, 01 Jun 2010 00:40:11 +0000 http://www.legalfish.com/TheDailyTackle/?p=824#comment-1077 Hi,this is Milda Henby,just observed your Post on google and i must say this blog is great.may I share some of the Post found in this weblog to my local friends?i'm not sure and what you think?in either case,Thanks! Hi,this is Milda Henby,just observed your Post on google and i must say this blog is great.may I share some of the Post found in this weblog to my local friends?i’m not sure and what you think?in either case,Thanks!

]]> By: Krystyna http://www.legalfish.com/TheDailyTackle/2010/02/01/drowning-in-mortgage-debt-is-there-a-get-out-of-jail-card/#comment-240 Krystyna Sun, 07 Feb 2010 22:29:46 +0000 http://www.legalfish.com/TheDailyTackle/?p=824#comment-240 Hi, Emily. Great question. Chapter 11 differs because it is open to corporate entities. It is sometimes called a rehabilitative bankruptcy, because just like physical therapy can make someone with an injury stronger, Ch. 11 allows a company to restructure its debt and reemerge as a viable entity. The company is allowed to carry out its operations during this time and is granted leeway with its creditors to renegotiate its loan repayment agreements on more favorable terms. The debt is not absolved in a Ch. 11, so if a company following its Ch. 11 restructuring still cannot operate effectively and service their debt obligations, it may have to convert its bankruptcy to Ch. 7. At that point, its assets would be liquidated, operations would be suspended and debtors repaid - most likely for cents on the dollar. Hi, Emily. Great question. Chapter 11 differs because it is open to corporate entities. It is sometimes called a rehabilitative bankruptcy, because just like physical therapy can make someone with an injury stronger, Ch. 11 allows a company to restructure its debt and reemerge as a viable entity. The company is allowed to carry out its operations during this time and is granted leeway with its creditors to renegotiate its loan repayment agreements on more favorable terms.

The debt is not absolved in a Ch. 11, so if a company following its Ch. 11 restructuring still cannot operate effectively and service their debt obligations, it may have to convert its bankruptcy to Ch. 7. At that point, its assets would be liquidated, operations would be suspended and debtors repaid – most likely for cents on the dollar.

]]> By: Emily http://www.legalfish.com/TheDailyTackle/2010/02/01/drowning-in-mortgage-debt-is-there-a-get-out-of-jail-card/#comment-238 Emily Sun, 07 Feb 2010 16:08:53 +0000 http://www.legalfish.com/TheDailyTackle/?p=824#comment-238 I've been wanting to read an explanation just like this! How does Chapter 11 (the one you hear about on TV, reality shows and radio) fit into the triumvirate?? I’ve been wanting to read an explanation just like this! How does Chapter 11 (the one you hear about on TV, reality shows and radio) fit into the triumvirate??

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