A prepackaged bankruptcy is an out of court restructuring proposal submitted to the bankruptcy court simultaneously with a Chapter 11 filing. The average Chapter 11 bankruptcy takes at least a year and can be two or three years before the company can emerge from Chapter 11 protection. A prepackaged plan takes less than six months, thus saving time and avoids the effects of dissension that accompany a bankruptcy filing. If the prepackaged plan is not overwhelmingly accepted, but is accepted by a majority of each impaired class, then the prepackaged plan is filed with the Chapter 11 petition. A prepackaged plan allows less deterioration of the property of the debtor. The votes for the Plan of Reorganization have been solicited and agreed upon prior to the filing. The major players have agreed among themselves about important issues. The prepackaged bankruptcy does not change the requirements concerning creditor approval of a Plan of Reorganization.
Stephen P Vlahos
Performance Plus Advisors, Inc.
You will still be able to get federal suedtnt loans as long as you are not defaulted on any past suedtnt loans. Private suedtnt loans are given based on your credit history and I doubt you would qualify for one with a bankruptcy on your credit report.That being said, filing bankruptcy does not effect current suedtnt loans at all you are required to pay them back even after you file bankruptcy. (even if you list them as debt in the bankruptcy you still have to pay them back) If they were in deferment before the bankruptcy, then you prob still are but eventually (or perhaps even now if you haven't been paying on them since the bankruptcy) that deferment period will expire and you again will are required to pay on them.If you do not or have not been making the required payments since the deferment expired, you will eventually go into default and yes, not be eligible to receive additional suedtnt loans.Sorry.
Posted by: Arlan | 08/03/2012 at 08:26 PM