Today's tough economy has led many individuals to make tough choices regarding their finances. Many Americans have had to create strict budgets to try and save what they had before the economy declined. But some were in too tough a position for a simple budget to help. Some have had to turn to bankruptcy to get out of their tough financial situations.
There are two types of personal bankruptcy. One type is Chapter 7, which allows for liquidation of the filer's debts. The other type is Chapter 13, which allows the debtor to create a debt reorganization plan to pay back creditors and eliminate or reduce fees and interest. One benefit of filing for bankruptcy is that it puts an automatic stop on all creditor actions.
The founder of CNET, Halsey Minor, filed for bankruptcy last month. He is now trying to get his case reinstated because his attorney missed the deadline for filing the proper paperwork. His filing was dismissed in Los Angeles bankruptcy court because of the failure to file the proper schedules or plan required for the case. Minor filed his asset information June 7. In his filing, he listed his assets at $32 million and his debts at $104 million. Apparently the attorney did not have all the information needed to make a complete filing. The initial filing was completed on May 24.
Now, Minor's new attorney is claiming that he does not think it is fair for the debtor to be punished because his attorney did not file the correct paperwork on time.
Source: Bloomberg Businessweek, "Halsey Minor tries again for bankruptcy after missed deadline," Dawn McCarty, June 15, 2013