If Your Company Is In Liquidation
Liquidation can be a stressful time for debtor companies, particularly for their directors and owners. It is essential to keep in mind that when your company initiates the liquidation process, your liquidator will usually lodge the necessary notices with ASIC on your behalf. A range of information will become available to your creditors, trading partners, customers, and the general public.
If you have any concerns about you and your liquidators obligations to keep creditors informed about your status, it is a good idea to obtain advice from an insolvency advisor, so that you are fully aware of your responsibilities at each stage of the process.
Australian Debt Solvers are leading Australian experts in Business Liquidation;and Voluntary Administration. Contact us;now for advice if your business is in financial difficulties.
In this artical
Recommended Reading: How Does Bankruptcy Affect Buying A House
My Company Declared Bankruptcy After I Filed A Wage Claim With The Labor Commissioner What Do I Do
Regardless of whether you have not yet filed a wage claim, are in the middle of the claim, or have already won a wage award from the Labor Commissioner, the bankruptcy law automatically freezes all legal actions against the company the minute they file for bankruptcy. The court could fine you for disregarding this automatic stay on legal actions, so it is very important that you stop pursuing your claim as soon as you hear of the bankruptcy. If you have an unpaid wage award, or feel you are owed wages but have not yet begun wage claim proceedings, you should submit it as a claim to the bankruptcy court on a Proof of Claim form, not to the Labor Commissioner.
After Your Bankruptcy Application Is Accepted
Once your application is accepted, it is important to note that:
- your details will appear on our website.
- all your creditors will be sent a report. They can log onto our website to get updates after the first report is sent.
- you should contact your secured creditors and arrange to either:
- keep making payments under the agreement or
- arrange for the secured item to be returned/repossessed. You can then stop making any payments under the agreement. They can claim against you for any unpaid amount.
Don’t Miss: When To Buy A Car After Bankruptcy
How Can I Check Whether Someone Has Been Bankrupt
You can pay a fee to the Office of the Superintendent of Bankruptcy for them to search for any record of a specific Canadian individuals having being bankrupt. To do this on the Internet:
- Go to the OSBs Insolvency Name Search.
- Establish an account for searching.
- Specify criteria for your search. These can include names and age of the person, and place of filing.
- Each search costs $8.00, whether successful or not. If the search finds more than ten matches to your search criteria, it will cost a further $8.00 to view each ten or fewer after the first ten.
The search tool does not allow random searches. The person searching must know in advance whose record they are seeking, or the search may become prohibitively expensive.
How To Find Out If Someone Filed Bankruptcy In Illinois
Bankruptcy, although a highly personal matter for some, is not considered private by the judicial system. When an individual or company files for bankruptcy, that bankruptcy petition becomes a matter of public record. A public record of the bankruptcy exists regardless of whether or not the debtor ever receives a bankruptcy discharge. If you know where to look, you can find out if someone filed for bankruptcy no matter which state he lives in.
Generally, bankruptcy filings are public record, available to anyone who wishes to review them. You can access the case documents online through PACER, an electronic public access service of United States federal court documents. Alternatively, you can search the bankruptcy records in person at the relevant bankruptcy court clerks office. Bankruptcy filings consist of all the documents that are filed in a particular case. Some important motions for which you should watch are motions to dismiss the case or motions to convert to another type of bankruptcy proceeding. These motions reflect a possible failure on the part of the debtor to follow bankruptcy rules and may affect your rights if the debtor owes you money.
Don’t Miss: Who Can File Chapter 7 Bankruptcy
How To Check A Business To See If They Filed Chapter 11
To check if a business has filed Chapter 11 you will need to access the docket of the federal bankruptcy court for the district where the company is located or where it was registered. The U.S. bankruptcy court is within the federal judiciary system. Chapter 11 bankruptcy allows a company overwhelmed by debt to reorganize and keep the business in operation while paying off creditors over time.
Find out the official name of the business and where it is registered. It is not uncommon for businesses to be registered outside of the state where they primarily do business. You can confirm this information at the secretary of state’s office.
Find the bankruptcy court for your jurisdiction and its location. Read More:How to Convert Chapter 11 Bankruptcy to Chapter 7
If you want to access the court information online, follow the links to find case information from the court’s page. Each bankruptcy court maintains its own database of cases. You will need to register for the Public Access to Court Records system. Registration is free and you will only be charged when you use the system, which costs 8 cents per page as of 2009. The most convenient way to register is with a credit card. Once you have a PACER login and password, you can access court records for federal district, appellate and bankruptcy courts.
References
Bankruptcy And Insolvency Records Search
- basic debtor information of all bankruptcies and proposals registered in Canada since 1978
- all receiverships registered with our office since January 1993
- all petitions recorded at our office; and
- all companies that have been granted protection under the Companies´ Creditors Arrangement Act since September 18, 2009.
- Date modified:;
Also Check: How To Get A Credit Card After Filing Bankruptcy
The Law Offices Of Kretzer And Volberding Pc Can Help Throughout Your Bankruptcy Case
To navigate bankruptcy and to access records through the PACER system, it is invaluable to have a lawyer with experience on bankruptcy in Texas and who has the right knowledge and resources to help you. For help from the Houston bankruptcy lawyers at the Law Offices of Kretzer and Volberding P.C., contact us online today.
How Bankruptcy Affects Investors
Clearly, nobody invests money in a company, whether through its stock or its debt instruments, expecting it to declare bankruptcy. However, when you venture outside of the risk-free realm of government-issued securities, you are accepting this added risk.
When a company begins bankruptcy proceedings, its stocks and bonds usually continue trading, albeit at extremely low prices. Generally, if you are a shareholder, you will usually see a substantial decline in the value of your shares in the time leading up to the company’s bankruptcy declaration. Bonds for near-bankrupt companies are usually rated as .
Once the company goes bankrupt, there is a very good chance you will not get back the full value of your investment. In fact, there is a strong possibility that you won’t get anything back at all.
As the SEC summarizes, “During Chapter 11 bankruptcy, bondholders stop receiving interest and principal payments, and stockholders stop receiving dividends. If you are a bondholder, you may receive new stock in exchange for your bonds, new bonds or a combination of stock and bonds. If you are a stockholder, the trustee may ask you to send back your stock in exchange for shares in the reorganized company. The new shares may be fewer in number and worth less. The reorganization plan spells out your rights as an investor and what you can expect to receive, if anything, from the company.”
Don’t Miss: How Soon After Bankruptcy Can You Buy A Car
How Will I Know What’s Going On
Sometimes, you may first learn about a bankruptcy in the news. If you hold stock or bonds in street name with a broker, your broker should forward information from the company to you. If you hold a stock or bond in your own name, you should receive information directly from the company.
You may be asked to vote on the plan of reorganization, although you may not get the full value of your investment back. In fact, sometimes stockholders don’t get anything back, and they don’t get to vote on the plan.
Before you vote, you should receive from the company:
- a copy of the reorganization plan or a summary;
- a court approved disclosure statement which includes information to help you make an informed judgment about the plan;
- a ballot to vote on the plan; and
- notice of the date, if any, for a hearing on the court’s confirmation of the plan, including the deadline for filing objections.
Even when stockholders do not vote, they should get a summary of the disclosure statement, and a notice on how to file an objection to the plan.
Stockholders may also receive other notices unrelated to the plan of reorganization, such as a notice of a hearing on the proposed sale of the debtor’s assets, or notice of a hearing if the company converts to a Chapter 7 bankruptcy.
Its All About You We Want To Help You Make The Right Legal Decisions
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesnt influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
There are times;when you may need to know whether a company is in bankruptcy. Because both individual and corporate bankruptcy are considered public information under federal law, there are several ways to find out if a company has filed for bankruptcy. Many times business;bankruptcies are reported in the news or on investment wires. However, it can be easy to miss these articles if the company in question is not a large multinational corporation. Fortunately, there are other ways to find out if a company is bankrupt.
Read Also: What Are The Alternatives To Filing Bankruptcy
How Do My Creditors Learn Of My Bankruptcy
The Licensed Insolvency Trustee in an individuals consumer bankruptcy mails a notice of bankruptcy to each of the individuals creditors. Creditors of a bankrupt individual record the bankruptcy when they receive this notice.
If you are applying for new credit while your bankruptcy remains on your credit bureau records, the companies considering granting credit to you may record the bankruptcy when they check your record at a credit bureau.
Using Government Sources To Find Bankruptcy Information
The Securities and Exchange Commission and the Bankruptcy Court also keep records online and in paper files. Because the SEC plays a small role in reviewing plans of reorganization, it keeps bankruptcy records. Those records can be accessed online or in person at the SEC headquarters in Washington, DC. The Bankruptcy Court in the state where the company is incorporated or has its main place of business will also have those records.
If you want to review court filings, you can access them through the PACER system, which is a;web-based index of filings in federal courts. To do so, you need to set up an account. Please note that PACER charges a nominal fee for access to court filings.
Because trustees are appointed in bankruptcy cases, you can also go to the U.S. Trustee at the Department of Justice. The office can help you find the trustee assigned to the company youre inquiring about. It can also help you obtain information about the status of the bankruptcy.
Recommended Reading: Can You Get A Credit Card While In Bankruptcy
Why Should I Find Out If Someone Filed Bankruptcy
Discharging debts in bankruptcy means that a debtor is no longer required to pay those debts. Debs are either discharged and assets sold to pay the creditors, or the court creates a repayment plan for the debtor to repay debts in a way that is more manageable based on their current income and finances.
The court enters an order that prohibits creditors to attempt to collect the discharged debts via legal action, telephone calls, letters, or other forms of contact.
There are a variety of reasons why someone might file for bankruptcy. Some of the more common reasons include:
- Unemployment
- Overextended personal lines of consumer credit
Filing for bankruptcy is generally not a decision people take lightly, but the fact that someone has taken that route to get out of debt might be of interest to other individuals who have an interest in their financial history and current financial health.
Bankruptcy cases are exclusively the jurisdiction of federal bankruptcy courts. Bankruptcy records are public information and can be helpful for making financial decisions. There are several reasons why you might want to find out if someone filed for bankruptcy. Some of the more common reasons are:
- Researching the financial history of a potential business partner;
- You need to determine whether it is a smart decision to loan money to someone; or
- You are interested in the financial history of a business.
Search For People With Bankruptcy Or Debt Relief Restrictions
Search the list of people with additional insolvency restrictions for the last 3 months.
The list contains details of people who have broken the terms of their bankruptcy or Debt Relief Order. They will have been given a penalty, called a Bankruptcy Restrictions Order or Undertaking or a Debt Relief Restrictions Order or Undertaking .
You may still be able to find information on the Individual Insolvency Register after 3 months but doesnt include any penalties.
You can ask for information about the unfit conduct of an individual by contacting the official receiver dealing with the case.
You May Like: When Should You File For Chapter 7 Bankruptcy
How Funds Are Recovered And Distributed
To help creditors recover some of what they are owed, non-exempt property owned by the bankrupt as of the date of the bankruptcy, or acquired prior to the bankruptcy discharge, may be seized and sold by the LIT. Exempt property includes property protected by applicable provincial and federal laws , property held by the bankrupt in trust for another and, in some cases, goods and services tax payments.
In addition, the LIT determines the bankrupt’s “surplus” income, i.e., the amount beyond what the bankrupt requires to maintain a reasonable standard of living. The bankrupt must pay this amount to the estate for distribution to the creditors after the costs of administration are deducted.
After the LIT has sold all of the bankrupt’s property, he or she must prepare a final statement of receipts and disbursements and a dividend sheet. The dividend sheet contains a list of creditors who will receive dividends and the amount to which they are entitled. You will be paid the dividends to which you are entitled before the bankruptcy file is closed, which is before the discharge of the LIT.
Once the secured claims have been settled, the dividends are distributed in the order set out in section;136 of the
These prior claims are subject to certain conditions and this list is not exhaustive.
The law gives priority to the claims of preferred creditors over those of other unsecured creditors.
Are Bankruptcy Filings Public Record
It’s important to understand that everything filed in a bankruptcy case is a matter of public record . So technically, your bankruptcy filing would be available for viewing by anyone willing to go through the steps to see it. But, most people wouldn’t bother. Here’s why.
After filling out bankruptcy paperwork, your bankruptcy petition and schedules get filed in the bankruptcy court and the clerk uploads them into the Pacer system used by the Federal courts to store and access court documents. Everyone with Pacer access can search the system using various queriesincluding a nameto find and view bankruptcy filings and other legal documents.
Even though accessing Pacer isn’t tricky, you need a password to do soand few people other than bankruptcy attorneys need to use the system regularly enough to warrant getting a password.
Even so, it’s unlikely that a friend or coworker would inadvertently stumble upon your bankruptcy case. Not only would someone need to suspect that you filed, but that person’s curiosity would have to be strong enough that they’d be willing to spend time getting a password and becoming familiar with Pacer’s search features.
Keep in mind, however, that a few smaller jurisdictions publish bankruptcy filing notices online. And it’s possible that a few might publish filings in the local newspaper, too.
You May Like: When Is Bankruptcy The Right Choice
Filing Bankruptcy As A Partnership
Partnerships are formal arrangements between two or more parties for the management and operation of a business. But technically, a partnership does not exist as a separate legal entity; it simply describes the association of the partners.
In good times, partners share in the profits. In bankruptcy, they may well share in the obligation to satisfy debts. It all hinges on the structure of the partnership.
The partnership that files for Chapter 7 bankruptcy, whatever the setup, is in for a rough ride, resulting in the loss of investments, lawsuits outside bankruptcy court, and the likely collapse of the partnership itself.
Thinking of trying the Chapter 13 reorganization path? Good luck with getting creditors to accept a long, drawn-out partial repayment plan if some combination of the partners has sufficient personal assets to pay off all the partnerships debts. An alert creditor may attempt to move the case into Chapter 7 to recover all its owed, rather than some reduced portion.
Thats the reason most partnership agreements contain a poison pill clause: The moment one partner files for bankruptcy, the business dies, preventing trustees or creditors from suing other partners to recover debts.
