Jefferson County sewer debt crisis could be settled today
A sewer debt crisis is threatening Jefferson County, Alabama’s financial stability, which could lead to the largest government bankruptcy in history.
Barnett Wright of “The Birmingham News” wrote in “Settlement, bankruptcy on table for Jefferson sewer debt crisis today,” that the Jefferson County Commission had approved a resolution that includes bankruptcy along with other options for reaching an agreement with sewer system creditors. A conceptual agreement signed in September that would have included certain concessions and reduced the county’s $2.05 billion debt has now lost $140 million in value.
The commission is getting frustrated in getting concessions from the creditors and has threatened bankruptcy twice before, but extended the deadlines for filing. Some observers feel the threat is just a ploy to get creditors on board.
The commission has asked the state to hold a special legislative session, but the governor has not acceded to their request. The largest creditor, JPMorgan Chase & Co., has not responded to questions regarding its position on the debt negotiations.
Bankruptcy would impair the county’s ability to borrow funds, and county officials warned that it may harm other municipalities in the state by increasing interest rates and fees.
A court-appointed receiver who oversees the Jefferson County sewer system remained optimistic that an agreement would soon be signed with creditors holding billions in debt, but that there were no guarantees. Meanwhile, the commission is still considering its options, including bankruptcy.
Information in this post gathered in association with a clarksville military divorce attorney.
Chapter 7 Bankruptcy Requirements
Chapter 7 bankruptcy is a great way for honest debtors to get a second chance. Unfortunately, there is also much potential for abuse by those simply seeking to avoid their financial obligations. That is why bankruptcy law imposes limits on who is eligible for Chapter 7 Bankruptcy. Long Island Chapter 7 bankruptcy lawyers can tell you whether or not you are eligible.
Who can file for Chapter 7 bankruptcy?
- Both individuals and corporate entities, such as partnerships and corporations, can file for Chapter 7 bankruptcy
- Chapter 7 bankruptcy is available without regard for the amount of debt or whether the debtor is solvent or insolvent
If you are filing for bankruptcy in Long Island, approach a bankruptcy lawyer in Long Island, considering that it is tough for an individual to go through the legal processes without expert help.
Who cannot file for Chapter 7 bankruptcy?
- A debtor is ineligible for Chapter 7 bankruptcy if a court dismissed a previous bankruptcy petition in the last 180 days after the debtor willfully failed to appear at court proceedings or comply with court orders
- A debtor is ineligible for Chapter 7 bankruptcy if he or she voluntarily dismissed a previous bankruptcy petition within the last 180 days after his or her creditors petitioned the court to recover property subject to liens
- A debtor is ineligible for Chapter 7 bankruptcy if he or she has not received approved credit counseling within the last 180 days unless special circumstances apply
- A debtor is ineligible for Chapter 7 bankruptcy if his or her monthly income is high enough that granting bankruptcy would be abusive under the Means Test
The Means Test
The Means Test is a complicated test used to determine if a debtor has income and resources such that granting discharge in bankruptcy would be a presumptive abuse of the bankruptcy law.
The court applies the Means Test if the debtor has a current monthly income in excess of the median monthly income in the state where the debtor filed for bankruptcy. Current monthly income is determined by averaging the monthly income the debtor received over the six months prior to filing for bankruptcy. This amount does not include social security income.
If the Means Test must be applied, the court determines the aggregate current monthly income enjoyed by the debtor over the last five years. If it is more than $11,725 or 25 percent of the unsecured debt the debtor carries, the court presumes that granting Chapter 7 bankruptcy would be an abuse of the bankruptcy law. The court will then either dismiss the petition or, with the consent of the debtor, convert it to a petition for Chapter 13 bankruptcy.
Even if the court presumes that granting relief would be an abuse of the bankruptcy law, the debtor has an opportunity to refute this presumption by showing special circumstances. The Long Island bankruptcy lawyers at the Law Offices of Kyle Norton, P.C. have dealt with this type of case before and know what the court looks for when considering special circumstances.
Contact us
For effective, professional advice and assistance when facing bankruptcy in New York and throughout the process, you need an experienced lawyer who is knowledgeable about all of the provisions of the law and who genuinely wants to help. Call our emergency legal hotline at 877-871-6179 or contact the Law Offices of Kyle Norton, P.C. online for a free consultation.
Chapter 7 Bankruptcy in Arizona – A Perspective
When you file a Chapter 7 Bankruptcy and complete the process, you are declared free from all debts by court order. You are allowed to retain those assets that are considered exempt but you must surrender all other assets for liquidation to the bankruptcy trustee.
If you find yourself in a maze of debts, approach an experienced and knowledgeable Tucson bankruptcy lawyer for guidance. Only an expert attorney can analyze your situation by assessing your debts, remaining assets, and other related details. Once you lay out the facts of your situation, your attorney can guide you through the legal proceedings.
Generally, most of your debts are discharged within a brief period after you file your bankruptcy in the Tucson bankruptcy court. The court-appointed trustee is responsible for the liquidation of your assets and dealing with creditors.
If you are unable to pay your debts and you are determined to have a fresh start, Chapter 7 is the way to go. If you decide to devise a plan for repaying your debts within a possible time span, Chapter 13 is a viable option for many individuals. But be sure to retain an expert attorney to assist you in making a decision on the right bankruptcy option for your circumstances.
Bankruptcy in Memphis — A Legal Overview
Financial troubles should not be ignored. Especially if you owe repayment to creditors, your situation needs immediate legal attention. If you live in the Memphis area, and your debts are genuinely beyond your control, contact an expert bankruptcy attorney in Memphis immediately. He or she can assess the situation and advise you if bankruptcy is a choice that might work for you.
For example, filing Chapter 7 bankruptcy is a good option for those who have insurmountable debts but do not have sufficient assets. This option can be utilized to eliminate debts due to credit card, medical bills, etc. Successfully filing for Chapter 7 bankruptcy gives you the opportunity to get a fresh start without the burden of earlier debts.
If you have a regular income, you can opt for Chapter 13 bankruptcy when your debts have reached an unmanageable level. Chapter 13 allows you to keep your home or business and gives you the time to pay your debts in a fair planned manner.
Following are important benefits on filing for bankruptcy:
- Stops foreclosure
- Prevents repossession
- Protects assets through exemption laws
An experienced Memphis bankruptcy attorney will be able to help you through the bankruptcy process. As per law, even if you have been through bankruptcy proceedings before, you can still choose to file for bankruptcy again for a different case scenario.