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August 2014 Archives

Chapter 7 discharge may be followed by new credit offers

After obtaining a bankruptcy discharge from a federal bankruptcy court in Pennsylvania or another jurisdiction, credit card offers may come unsolicited in the mail to the discharged debtors. As unlikely as that sounds, it happens because lenders are aware that a recently discharged Chapter 7 debtor has wiped out considerable debt and sometimes owes virtually nothing. The terms on are not as good as for those with excellent credit, but they are nonetheless real credit cards.

Small energy company files for Chapter 7 bankruptcy

Small businesses can file for a Chapter 11 or a Chapter 7 bankruptcy in Pennsylvania and all other federal bankruptcy districts. Chapter 11 is a reorganization plan that a business will file to reorganize its debts and business affairs, and hopefully continue to do business, even after the bankruptcy is ended. The business in a Chapter 11 ultimately wants to be discharged from the bankruptcy with a new lease on life and with the authority to continue doing business.

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