Tag Archives: BankruptcyLaw

Why You Should Never Hide Income When Filing for Bankruptcy

The star of the television show Dance Moms has been charged with hiding $755,000 worth of income during her Chapter 11 bankruptcy case. Most of the hidden income came from TV appearances, private dance sessions and merchandise sales. The television star of the Lifetime docuseries filed for Chapter 11 bankruptcy in 2010, owing $356,000 in debt from a financially troubled dance studio. In a strange twist of events, the bankruptcy judge who had presided over her case was channel surfing and came upon her show. After realizing she was a television star, the judge concluded the case probably involved fraud. As it turns out, the judge was correct, and the television star has been charged with hiding income and defrauding the bankruptcy court. What are the Consequences of Bankruptcy Fraud? The consequences of bankruptcy fraud depend on each individual case, but it can land debtors in prison with felony charges….
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Colt Defense’s Chapter 11 Bankruptcy Is Almost Over

Colt Defense is nearing the end of its journey through Chapter 11 bankruptcy, and expects to secure an additional $50 million in capital under its reorganization plan. As one of the oldest and most well-known firearms manufacturers in the United States, Colt Defense has provided weapons for Vietnam, the Civil War, World War I and World War II. After filing for Chapter 11 bankruptcy, Colt Defense secured approval from the court to borrow $10 million in debtor-in-possession financing to continue operating. This approval from the bankruptcy court bought Colt Defense time to restructure, survive and find a path forward to becoming profitable again. Sciens Capital Management, Fidelity National Financial and Newport Global Advisors will provide an additional $50 million in financing under the Chapter 11 bankruptcy reorganization. Colt Defense began to struggle financially after losing a major contract with the U.S. military, which had been a major source of business….
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