Overview of Bankruptcy Process

This is a layman’s interpretation of the bankruptcy process, provided for general information.  The actual sequence of activities may be different.

  1. The Board decides to pursue bankruptcy and authorizes a law firm to file for us.  The filing is done in federal court in Indianapolis.  (The decision was made on November 6, 2018.  The law firm of Rubin & Levin in Indianapolis will handle the filing.  We expect the filing to be done in mid-December, 2018.)
  2. The court appoints a Trustee – an impartial third party – to oversee the bankruptcy.
  3. The Board turns over all assets of the Co-op to the Trustee.
  4. The Trustee sends a notice to all owners of the Co-op, advising them on the next steps in the process and how to file a claim.
  5. The Trustee convenes a “First Meeting of Creditors” , which gives owners the opportunity to ask questions.
  6. Owners have a set period to file claims for payment.
  7. The Trustee hires an accountant to file the final tax return for the Co-op and close the Co-op’s financial books.
  8. The Trustee disburses payments to claimants.

 

This page will be updated as we progress through the process and receive new information.