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Alabama is unsatisfied with bankruptcy plan

Jefferson County in the State of Alabama filed for bankruptcy nearly two years ago. Generally, when a municipality files bankruptcy, it needs to come up with a court-approved plan to reduce the debt it owes. Alabama is not satisfied with its current plan, and it is thinking about ignoring it if its creditors or debtors do not reach an agreement to accept less than they are owed. If these creditors do not accept the plan proposed, then this might prolong coming up with an answer to the debt problem as reported by Reuters in an October 17, 2013 news article.

Initially, the creditors agreed to the current plan, but the county now wants them to approve a new plan, which would then need to be approved by the court. Part of the plan includes income totaling about $2 billion from a “sewer system.” Moreover, if Jefferson County takes the plan off the table, then a new plan would need to drafted and finalized

The county is giving these creditors or lenders a little over two weeks for the plan to be approved. They feel that the creditors need to agree to the plan, as the interest rates have currently increased since the initial plan, and they are unable to keep up the current interest rates. The county wants to preserve the old interest rates. In addition, the county is going to “file a notice of termination” if the creditors cannot work out some sort of agreement. So far, there is a court date for November 12.

Jayson Lutzky is a bankruptcy lawyer who has 30 years of experience practicing law in New York. His thousands of satisfied clients show that Mr. Lutzky is a strong attorney and tough negotiator. If you are in debt, whether it is credit card debt or mortgage debt, then set up a free in person consultation with Mr. Lutzky. He can help decide if filing for bankruptcy is right for you or you and your spouse. Call 718-329-9500 today to learn more and to set up an appointment. Visit www.MyNewYorkCityLawyer.com for further information.

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