BANKRUPTCY

COLORADO FILINGS

TREASURERER’S RESPONSIBILITIES

Bankruptcy Law is Federal Law  There is NO Colorado Bankruptcy Law  Title 11 of the United States Code  11 U.S.C. Section  State statutes govern your actions and procedures

Automatic Stay  Automatic Stay is an injunction that stops foreclosure, garnishments, collection of debts and Tax Lien sales  Upon filing of any Bankruptcy, the Automatic Stay is in place.  The Creditor must file a Relief from Automatic Stay or wait out the course of the Bankruptcy

MONITORING DEBTS

3 Types Of Bankruptcy Filings To Monitor  Chapter 7  Chapter 13  Chapter 11

Chapter 7 Bankruptcy  Chapter 7 is the most common  Complete liquidation of assets  Discharge normally within 3 – 4 months  Property Taxes are not Dischargeable  Trustee

Chapter 13  Chapter 13 is the reorganization of debt.  Chapter 13 allows a debtor to keep property and use disposable income to pay debts over 3 – 5 years.  They have to submit a plan

Chapter 11  Chapter 11 is Reorganization normally involving corporations.  Reorganization Plan  Monitor during the course of the plan

3 TYPES OF DEBT

General Unsecured Debt  Creditor’s Claim without a priority for payment. Holds no Collateral  Most common General Unsecured Claims are Credit Cards, Medical Bills and Signature/Personal Loans  The debt WILL be Discharged

Secured Debt  A Claim Secured by a Lien  Can be divided into Secured and Unsecured depending on Value of Property  Generally a Secured Claim gets paid in full

Priority Debt  Unpaid Wages, Spousal or Child Support and Federal and State Taxes  Priority must be paid in full before General Unsecured Claims

PACER  Public Access to Court Electronic Records  Must have a PACER Account to access  Allows users to obtain case and docket information from Federal Courts

How Arapahoe County Handles Bankruptcy  Pull a Daily PACER Report for ALL Chapters 7, 13 and 11  Review all filings to see if property owned  If property is owned & taxes are owed:

Chapter 7 Delinquent Taxes  Flag your system for no further collection  Prepare/File a Notice of Appearance  By filing a Notice of Appearance, this allows you to get Notice of ALL documents filed in case

Chapter 13 Delinquent Taxes  Pull Docket from PACER and review the Chapter 13 Plan to see if our tax debt is included  File a Proof of Claim  If not included in Plan file Objection to Confirmation of Plan

Chapter 11 Delinquent Taxes  Immediately File a Notice of Appearance  If Personal Property Taxes owed file Proof of Claim  Check first day motions to see if a Motion Sell Property Free and Clear of Liens  File Objection to Motion  Most major businesses file in District of Delaware and Southern District of New York.  Must be registered in each District to be able to file through CM/ECF.

CM/ECF Filings  CM/ECF is a comprehensive case management system that allows users to file over the internet  Pleadings and Proof of Claims are filed through CM/ECF Filing  Must have an attorney registered to use CM/ECF

Conclusion  Lack of Notice of a Bankruptcy is crucial  Without Notice you could lose out on getting paid on Personal Property Taxes  Get daily s from Google or Other Search Engines regarding bankruptcy filings

Questions?