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News KARE Etc Bookmarks About Us NWA announces post bankruptcy payment amounts Northwest Airlines can begin seeking creditor approval of a plan to exit bankruptcy that values the company at an estimated billion a judge ruled Monday The decision puts the airline in the last stages of bankruptcy before it can emerge from court protection U S Bankruptcy Judge Allan Gropper said that once Northwest revises its disclosure statement to incorporate agreements reached Monday the statement could be released to creditors along with a restructuring plan Eagan Minn based Northwest Airlines Corp wants to cancel all existing shares in the company and issue million new ones with a stock offering to sell million shares at a piece Another hearing will be held this week to determine whether an examiner will be appointed to investigate merger discussions that may have taken place with Northwest Gropper said A reorganization plan could be mailed to creditors as early as April A hearing to confirm the company's reorganization plan is scheduled for May Two of the company's labor unions the Association of Flight Attendants and Air Line Pilots Association as well as certain shareholders and bondholders had objected arguing that the disclosure statement
News KARE Etc Bookmarks About Us NWA announces post bankruptcy payment amounts Northwest Airlines will give non union employees million in cash and stock as part of a bonus program after the airline emerges from bankruptcy an attorney for Northwest said Monday The employees who took pay and benefit cuts as the company reorganized would get percent of the bonus as cash when the company emerges from court protection lawyer Bruce Zirinsky said in court The remaining percent would be issued as new common stock in the company one year later as long as the employee is still with the company A hearing to confirm the company's reorganization plan is scheduled for May Another executives at the company will participate in a separate management equity plan No details were offered about that plan on Monday Zirinsky said the total amount of the payout was roughly calculated using a formula under which Northwest calculated claims that have been given to its labor unions He also announced that flight attendants and certain workers represented by the International Association of Machinists would receive a claim of an undisclosed amount partially restoring pay and benefits that the company extracted earlier The IAM claim
Payment Plans Credit Consolidators vs Bankruptcy Bankruptcy Payment Plan Debt Consolidation You hear them on television late at night Credit counselors or credit consolidators promise an easy way to take care of credit problems without filing for bankruptcy Credit consolidation certainly sounds better than bankruptcy but is it? In most cases the answer is clearly no Heres why In bankruptcy your debt can be eliminated A can make many of your debts go away completely No credit consolidator can do that For information on whether you qualify for filingChapter bankruptcy please contact Michigan bankruptcy lawyers at Boren amp Carey In bankruptcy you are paid first When we reorganize your debt in a you get your living expenses before any creditor gets paid a dime We start with your monthly income and subtract your mortgage payment car payment rent utilities and what you need for food clothing and utilities each month Only the amount left over is available to help pay your creditors some of what you owe them A credit counselor pays you last A credit counselor or consolidator will establish a repayment plan with your creditors by negotiating a minimum monthly payment From your monthly income you pay
From the 'Lectric Law Library's stacks Bankruptcy Questions Basic Information amp Answers * WHAT IS BANKRUPTCY? Bankruptcy is a legal procedure designed both to protect an individual or business that can't meet its financial obligations and to protect the creditors involved To begin the process proper papers must be filed There are specific chapters of the federal bankruptcy law Proceedings under Chapter Seven involve taking most of the borrower's property The court appoints a trustee to sell off the assets and distribute the cash among the creditors Proceedings under Chapter Thirteen involve the borrower proposing a plan for repaying a portion of the debt in installments from the borrower's income Chapter Eleven of the federal Bankruptcy Act is generally used by corporations and not by consumer debtors Its proceedings are expensive and complex Consumer debtors normally use Chapter Seven or Chapter Thirteen Once the bankruptcy proceeding ends the borrower is no longer liable This occurs when the bankruptcy court enters a discharge order in a Chapter Seven case or the borrower has paid the debts due to the credit grantors according to a plan in a Chapter Eleven or a Chapter Thirteen case In legal terms the court has