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Founder of CNET website bankruptcy case dismissed by judge

The founder of a major media website devoted to the latest technology and electronic devices filed for Chapter 7 bankruptcy protection after running into a series of financial challenges after the sale of his website.

Unfortunately, the man now faces a new obstacle because a bankruptcy judge dismissed his Chapter 7 case. The court said that it had given the man a deadline by which to file certain financial information and other required paperwork but the man did not comply. The man's attorney said that the deadline was earlier this month and had been missed by about a week; the man has since filed the required information.

Still, at this point, the man's creditors are free to proceed with collection without having to worry about violating the bankruptcy court's automatic stay. Until the case was dismissed, the automatic stay had prevented creditors from collecting against the man. The man's attorney pointed out that the bankruptcy was only filed in late May and the man will ask the court for permission to reinstate his bankruptcy case. The man's attorney also added that the court usually grants requests for reinstatement under these circumstances.

Nevertheless, Massachusetts residents should remember that bankruptcy courts have strict deadlines, and the courts will not hesitate to dismiss a case when a person seeking bankruptcy relief does not comply with those deadlines. While it is not possible in every case, it is generally the best practice to file all of one's bankruptcy paperwork at once, right at the beginning of the case.

In order to accomplish this, a Massachusetts debtor needs to work closely with his or her bankruptcy attorney to obtain the necessary financial documents and to fill out each form that the bankruptcy court requires correctly and completely. While this is a time-consuming process, the reward of a fresh financial start is usually well worth it.

Source: Bloomberg, "eadline.html">CNET Founder's Bankruptcy Thrown Out Over Missed Deadline," Erik Larson and Dawn McCarty, June 14, 2013