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Mayor Richard Pastrick has a Bankruptcy Boo-Boo!

By Joseph McDaniel, Esq.

You think you have problems with a bankruptcy?

Former Mayor Richard Pastrick filed a Chapter 7 Bankruptcy, but it has not been without speed-bumps.

As you can see from this article, Pastrick may have a problem with the Means Test, but worse, it may be that he fails to pass the debt limits for a Chapter 13.

Let's do that again, because bankruptcy law is confusing, whether it's in Arizona or Illinois.

To pass muster and get the benefits of a Chapter 7 Bankruptcy, a debtor must pass the Means Test or be subject to an exception to the Means Test, like the Business Debt Exception.

If a debtor doesn't pass muster under the Means Test, the U.S. Trustee's Office will file a Motion to Dismiss or Convert to a Chapter 13.

But wait! Not everybody qualifies to file a Chapter 13 Bankruptcy!

The requirements include regular income, as defined in the statute, and also requires that the debtor have less debt than the amounts specified at 11 USC 109!

If a potential debtor has overwhelming debt, the only other bankruptcy tool in the briefcase is a personal Chapter 11 Bankruptcy, which will sometimes get a good result, but it ain't easy, fast, or cheap.

p.s. if there's a 100-million dollar judgment against Pastrick, he doesn't qualify under the debt limits for a Chapter 13. Now I don't guarantee much, but I'll guarantee that! 

 

Full post as published by Arizona Bankruptcy Attorney Blog on February 07, 2011 (boomark / email).