July 2011

Kindergarteners have one answer to the question in our title.  Bankruptcy attorneys have another.  An ABC is an “Assignment for the Benefit of Creditors,” and it provides an alternative to Chapter 7 liquidation for a small business that is shutting down.  Let’s compare the two approaches to resolving business debts.

I.          Business Bankruptcy

The Bankruptcy

This question arises within the context of a much larger controversy.  I won’t discuss that larger controversy except insofar as it has relevance to the topic at hand.  To put things in context, it helps to have a little background – statutory, and otherwise.

I.          Joint Bankruptcy Filings

The Bankruptcy Code is divided into chapters,

I.          The Basic Idea:  Cancellation Of Debt Income

Let’s first understand the basic idea with a simple non-real estate example.  Suppose you owed me $100,000.  I’m such a nice guy that I forgive the debt.  It turns out that this becomes a mixed blessing because now the IRS and the Franchise Tax Board (FTB) both

In a previous posting I discussed the concept of preferential transfer.  A somewhat related topic that has serious implications to bankruptcy filers is fraudulent transfer – also known as fraudulent conveyance. 

I.          Fraudulent Transfer Outside Of Bankruptcy

            A.        The Origins Of Fraudulent Transfer Law

The concept of fraudulent transfer has its origins in ancient

There are many factors that must be considered when choosing how to deal with mortgage challenges.  A few examples presented as questions can help illustrate some of the many things you need to consider:  Are your difficulties due to a temporary employment setback that has been resolved?  Can you make all future mortgage payments?  Based