The business owner owns cemeteries in two Ohio counties and is facing a lawsuit from the Ohio Attorney General's office regarding claims of poor maintenance at the cemeteries and not providing grave markers for which customers paid. According to the Chapter 13 plan, the business owner would like to surrender the two cemetery properties to satisfy the claims in those counties.
]]> Chapter 13 bankruptcy allows a person to create a plan to pay off debts without losing personal property. Chapter 13 can take three to five years. Unlike Chapter 7 bankruptcy, where personal property is liquidated to pay debts, a person is allowed to create a new plan to repay a portion of the debts owed. The person filing for Chapter 13 is required to live within a strict budget that is monitored by a state-appointed trustee. If payments are missed, then the Chapter 13 fails and the debts remain. People undergoing Chapter 13 are protected from various creditors who cannot initiate lawsuits or garnish wages to recover the debts.In Nevada, a mathematical formula called the "Means Test" is used to determine whether a person can file for Chapter 13 or Chapter 7 bankruptcy. If a debtor is financially able to repay part of the debt, then Chapter 13 is usually appropriate. The test is then used to determine how much money the debtor is able to repay and what kind of repayment plan and schedule is appropriate.
An experienced bankruptcy attorney can help navigate these laws and advise clients on which type of bankruptcy is appropriate.
Source: Chillicothe Gazette, "Floral Hills owner files bankruptcy," Jona Ison, May 7, 2012
]]>Her fashion label has been owned by U.S. firm Castanea Partners since 2007 and as part of the Chapter 11 restructuring, will close the majority of its 63 stores and focus on selling her lower priced products. According to bankruptcy filings, Betsey Johnson has $21.3 in assets and $15.4 in liabilities as of the end of 2011.
]]> In 2010, the brand's intellectual property was bought by Steve Madden Ltd. and at that time took on its $48.8 million of debt. With the bankruptcy restructuring, e-commerce or wholesale shipping will not be affected, but the restructuring will probably cost 350 jobs company-wide.The designer is known for her feminine style and antics at runway shows began her line in 1978 and will remain in creative control through the restructuring process. Johnson was inducted into the Fashion Walk of Fame in 2002 and expanded her line to include accessories, bags, hats and scarves in 2004.
The economic downturn has affected everyone in some way, but with a restructuring plan in place, the American designer hopes her company can come through this turbulent time.
The Betsey Johnson clothing line will still be available at Bloomingdale's, Sak's Fifth Avenue and Nordstroms and the fashion designer will be launching her own fashion reality show with her daughter.
Source: The Orange County Register, "Punk fave Betsey Johnson on the skids," Cindy McNatt, May 2, 2012
]]>The filings earlier this month are due to the dispute between the developer and the International Bank of Commerce, which holds the mortgages on both properties. IBC recently filed a lawsuit against the developer accusing him and the builder of taking millions of dollars into annuities when they realized that they might default on a $40 million loan on the Diamond Beach property. The owners of this property owe approximately $28 million on the loan. The developer denies the allegations and believes that he has done nothing wrong and had invested his own money into the annuities for his retirement.
]]> The developer, known for his high end residential and hotel projects from Nevada and Texas, believes that the lawsuit is an attempt to tarnish his reputation and hurt his business going forward.IBC eventually dismissed the lawsuit, but the dispute went public and now it is in arbitration. Diamond Beach contains 116 condo units and 41 of them are sold. The liquidation appraisal value of Diamond Beach is $29.4 million and the mortgage debt is $27.7 million.
The filing of Chapter 11 can sometimes stall or prevent foreclosure while restructuring takes place. The developer feels that the properties have a strong footing and that the operations are strong. During the bankruptcy process, the sales program for the properties will continue as well as negotiations between IBC and the developer.
Source: The Daily News, "Diamond Beach owner files Chapter 11," T.J. Aulds, April 24, 2012
]]>The statistic is startling and the report shows that five years after the mortgage crisis first started, there continues to be problems on the housing front. Advocacy groups are urging policy makers to improve access to mortgage refinancing and provide public schools with funding to help homeless students.
]]> Across the nation more than eight million youths are struggling with the housing crisis. Many have lost their homes, are facing eviction or are at risk from being evicted or foreclosed upon soon. The stress of this situation is not only financial for these families, but psychological as well. Studies have shown that these types of stress factors increase the risk of students dropping out of school, getting pregnant, or doing poorly in school compared to their peers. In some cases housing instability could contribute to physical and mental health issues.Nevada has the highest unemployment rate in the nation, and approximately 121,000 children have been affected by foreclosure. If you are in a situation where you are facing foreclosure, you should seek the advice of a bankruptcy attorney. They understand how property values have plummeted and how other economic factors have made it difficult for some families. An attorney can offer practical and effective solutions that could enable you to possibly save your home and build a stable financial future.
Source: Herald-Tribune, "Report: Nevada 1st in kids affected by foreclosure," Cristina Silva, April 19, 2012
]]>Under the bankruptcy restructuring plan, American will cut approximately 1,200 baggage and cargo jobs as well as close a reservation center. These cuts will reduce annual labor costs by $1.25 billon. The agents in the reservation center that will be closed were notified and will be offered jobs at other offices or could move to home-based work. Some of the part-time jobs will be eliminated.
]]> These reductions in staff will mean that all of the carrier's airport jobs in the U.S. and two cities in Canada will be outsourced. These changes were released to the nonunion group almost three months after it told employees that 13,000 of their jobs would be cut. In addition, pensions were frozen and changes were going to be made to their benefits.The company has been in negotiation with their unions on the proposed changes and nothing has been resolved. American will meet with a bankruptcy judge next week to persuade the judge to let them void union contracts and to impose new ones to secure spending cuts so that the airline can remain solvent.
As part of the restructuring, American wants to cut 20 percent from each work group, which would save them $95 million and affect approximately 10,000 airport and cargo agents. If approved, these changes would take place during the next 60 to 120 days.
In addition, airports that have the fewest daily flights will have all of their jobs outsourced and the airline plans to close five Admirals Clubs.
Source: Bloomberg, "AMR Cuts 1,200 More Jobs in $1.25 Billion Labor-Savings Plan," Mary Schangenstein, April 18, 2012
]]>Sapp reported in the filing that he lost his 2002 Super Bowl ring with the Tampa Bay Buccaneers and his 1991 championship ring from the University of Miami.
A Chapter 7 filing is used when the debt is so high that the person would never be able to pay it back over their lifetime. Chapter 7, also known as the "clean slate" bankruptcy, essentially erases all debt, giving the person a fresh start.
Sapp lists his average monthly income at $115,881 and includes a final contract payment with Showtime, payment for an appearance with CCA sports and an advance on a book deal. His contract with the NFL Network ends in August and it is not known if his contract will be renewed.
While there is nothing easy about making the decision to file for bankruptcy, if you decide this is the route you need to take, then you should enlist the help of a bankruptcy attorney. They can determine if filing for bankruptcy is in your best interest and which chapter fits your situation. They understand bankruptcy law and will work with you to help you build a secure financial future.
Source: The Jamestown Sun, "Sapp files for bankruptcy in Florida," April 9, 2012
]]>I think families who are in the midst of foreclosure would tend to agree. Geithner believes that there is a lot of unfinished business in regards to the housing finance area. Recently, the Obama administration has proposed that the government's involvement with Fannie Mae and Freddie Mac be untangled. Today, Fannie and Freddie buy mortgages and repackage them as securities for investors and the agency guarantees the debt. This will not be easy to undo without damaging the economic recovery.
]]> Geithner believes that Fannie and Freddie are not at risk now, but that's because the U.S. government bailed them out at the height of the financial crisis. Billions of taxpayer money was used to keep them solvent, but at the time, the government felt it needed to be done.There is a push for reforming the housing finance market and reform may include a finance system that could replace both Fannie and Freddie.
Families that are in the midst of foreclosure or may face it, feel that more needs to be done in the area of reform, but with programs that will help them stay in their homes. Some experts feel that the more foreclosures that are on the market, the longer it will take for the economy to improve and the housing market to rebound.
Source: Yahoo! News, "Geithner says U.S. far behind on housing finance reform," April 4, 2012
]]>Companies that are facing overwhelming debt do have options such as Chapter 11 bankruptcy protection. Filing under Chapter 11 allows a company to reorganize its debt and continue operating while it pays its creditors over a three to five year period. Small business owners could also opt to liquidate their business under a personal Chapter 7 bankruptcy and this allows them to walk away from debts of the business.
]]> Individuals who are contemplating bankruptcy may have misconceptions about filing for bankruptcy- they will lose everything they own, they won't be able to get back on their feet and it will destroy their life. These simply aren't true, especially if you live in Nevada.Filing for personal bankruptcy is a detailed process and if you are considering it, you first must decide which way you would file. A bankruptcy attorney can help you navigate whether Chapter 7 or Chapter 13 is right for you.
Filing for Chapter 7 is used in cases where the debt is so high that the person would never be able to pay it back over their lifetime. Chapter 7, also known as the "clean slate" bankruptcy, essentially erases all debt, giving the person a fresh start. Chapter 13 involves a structured repayment plan in which part of the debt is paid back to the creditors over a period of years.
Nevada residents filing for bankruptcy should be at ease because Nevada laws are relatively debtor-friendly, but bankruptcy issues can be complicated and difficult to understand unless you have the legal training and experience in bankruptcy law.
Source: Legalconsumer.com,"Nevada Bankruptcy Exemption Laws," 1989-2011
]]>Hostess Brands Inc is the maker of Twinkies and Wonder Bread and previously filed Chapter 11 in 2004 under its former name, Interstate Bakeries Corp. The company emerged from that bankruptcy in February 2009, but again fell on hard times.
]]> The company is also facing a possible strike by the Teamsters union who are in disagreement about pension and health benefits. Rayburn will not only run the company, he will oversee the company's reorganization, and will also work closely with the union on negotiations.Chapter 11 allows a company to keep its business alive and pay its creditors over a three to five year period at the current market interest rate. It also provides for a forced acceptance on secured and unsecured creditors repayment plans.
Rayburn has experience in Chapter 11 bankruptcy reorganizations and company officials feel that he will help put the company back on track. The Teamsters union has agreed to continue to work with Hostess toward a resolution that would allow the company to emerge successfully from bankruptcy while providing the union employees with the package of benefits that they would like. They understand that it will be challenging to find a comprehensive fix, but believe it can be done.
Source: Reuters, "Hostess Brands names CEO to work way out of bankruptcy," Mar. 9, 2012
]]>The company had filed for Chapter 11 bankruptcy protection in December 2011 in order to recapitalize the company by cutting its debt. William Lyon Homes also won support from its creditors for its reorganization plan.
]]> Many companies, large or small, like the option of filing for Chapter 11 bankruptcy protection because it allows the company to keep their business alive and pay their creditors over a three to five year period at the current market interest rate. It also provides for a forced acceptance on secured and unsecured creditors repayment plans. For example, if a company was successful and making a profit, but because of significant changes in the economy, the company may have suffered a setback and fell behind on its payments to creditors, Chapter 11 is a good alternative to shutting down their business.Under the William Lyon Homes Chapter 11 reorganization plan, they received a capital infusion of $85 million and reduced principal debt to approximately $180 million, resulting in a 37 percent reduction to their overall debt.
According to the company's chief operating officer and president, "the company was able to continue making acquisitions throughout the recapitalization process, and with our new capital structure, we look forward to bringing these and other highly desirable projects to market."
With the housing market showing signs of life again, Nevada resides will begin seeing more housing development.
Source: Reuters.com, "UPDATE 1-William Lyon Homes emerges from bankruptcy," Feb. 27, 2012
]]>The company sites the economic downturn that has hit southern Nevada as the main reason for the filing. According to the Commerce Department, sales of U.S. homes dropped 0.9 percent in January and the median price fell 9.6 percent from the same month last year.
]]> Under the reorganization agreement with seven lenders, the company believes that it will allow them to move forward with existing and new projects.American West has been building homes in the Las Vegas, Nevada, area since 1984 and currently has eight single-family communities under construction. Chapter 11 documents filed list assets of more than $50 million and debt of more than $100 million. The largest unsecured creditors include JPMorgan Chase Bank NA, California Bank & Trust and Bank of America NA.
Many companies like the option of filing for Chapter 11 bankruptcy protection because it allows them to keep their business alive and pay their creditors over a three to five year period at the current market interest rate. It also provides for a forced acceptance on secured and unsecured creditors repayment plans.
With the economy slowly coming out of the recession, executives at American West feel that they can weather this storm and get their company back on track and continue to provide housing options for the residents of Nevada.
Source: Bloomberg.com, "American West, Las Vegas Builder, Files for Bankruptcy," Dawn McCarty, Mar. 1, 2012
]]>A Chapter 11 filing provides a court supervised opportunity for a company to reorganize its business affairs and pay back creditors over a three to five year period at the current market rate of interest. It also provides for a forced acceptance on secured and unsecured creditors' repayment plans.
]]> Federated Sports + Gaming are best known for their management of the Epic Poker League. It held three events last year at The Palms Casino Resort and the idea was to set up the league like a PGA Tour to attract poker professionals that would earn their player cards to compete. Unfortunately the event struggled with only 137 players at the first event and even less participation in the other two events.The company also owns the Global Poker Index, epicpoker.com, the Epic Poker game on Facebook and the Heartland Poker Tour.
According to company officials they feel that the reorganization will give them the direction they need to keep the Epic Poker League moving forward. They intend to finish the first poker season, but the dates have not been set, and Federated Sports + Gaming are waiting until the reorganization takes place.
Last year the company bought Heartland Poker Tour and according to company officials, it will continue operating while the reorganization takes place.
Source: Casino City Times, "Epic Poker League parent company files for Chapter 11," Howard Stutz, Mar. 1, 2012
]]>The California-based commercial real estate brokerage firm has also agreed to sell itself to BGC Partners Inc., a publicly traded company that is known as a leading global intermediary to wholesale financial markets.
]]> The downfall of this firm is not a surprise because when the housing markets crashed, the commercial markets soon followed. In the court filing, the company reported experiencing operating losses related to the collapse of the financial markets and the slow recovery of the real estate markets as the reason for their Chapter 11 bankruptcy filing.What makes this filing unique is that BGC Partners is buying Grubb & Ellis even though they have filed for Chapter 11 bankruptcy protection. According to BGC, they believe that partnering with Grubb & Ellis' brokerage expertise, and combining that with their strong proprietary technology and strong financial backing, will help Grubb & Ellis grow and become a part of the BGC family.
Acquiring Grubb & Ellis will enhance BCG's portfolio as it also owns Newmark Knight Frank, a large commercial real estate service firm that operates in several U.S. markets, but currently has no Las Vegas office. Grubb & Ellis officials feel that their partnership with BGC, will help them grow their commercial real estate business and will also give them a well-capitalized global platform to run their business.
Source: Vegasinc.com, "Grubb & Ellis files for bankruptcy, will be sold," Steve Green, Feb. 21, 2012
]]>The lenders have agreed to make up the losses and identify the service members who may have lost their homes or were denied interest rate reductions. The lenders were in violation of a law that protects active duty and deploying troops from credit card or mortgage abuses. The lenders include JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, formerly GMAC.
]]> Through the comprehensive settlement of mortgage litigation, Wells Fargo, Citigroup and Ally will be required to provide any service member who was a victim of wrongful foreclosure, a minimum of $116,785, plus equity and interest. JPMorgan Chase, which has compensated some service members from an earlier private settlement, will provide victims with their home free and clear of debt or a cash equivalent of the full value at the time of the sale. In addition, service members will receive compensation for any additional harm they may have suffered.According to Tom Perez, assistant attorney general for the Justice Department's civil rights division, "the law postpones, suspends, terminates or reduces the amount of certain consumer debt obligations so that members of the armed forces can focus their full attention on their military responsibilities without adverse consequences for themselves or their families. It allows our service members to focus on the critical role they play in protecting our nation."
This settlement expands the protection for deployed troops whether they took out a mortgage before or after enlisting, and provides relief to the military families whose homes are worth less than what they paid for, when they need to relocate for new assignments.
If you are in a situation where you are facing foreclosure, you should seek the advice of an attorney that specializes in foreclosures. They can review your situation and give you suggestions and options that will fit your particular situation.
Source: The New York Times, "Mortgage Relief for Service Members," John H. Cushman Jr., Feb. 12, 2012
]]>If you have not been paying your mortgage a lender will call and send you letters to try and work out a modification on your loan. If you choose to ignore the lender, the property will go into foreclosure and you could lose your home.
]]> The other way you could lose your home is by filing for Chapter 7 bankruptcy and your home has more equity than the bankruptcy can protect. If this is the case, the trustee assigned to your bankruptcy, may sell the property to pay off your creditors. Before you file for bankruptcy, you should look into how much equity your home has and what its fair market value is so that you don't get into this situation.With the recent mortgage crisis, many homeowners are underwater in regards to what they owe on their homes compared to what it's worth. For those that have missed payments and are in the foreclosure process, may file for bankruptcy close to the foreclosure sale in the hopes that filing will protect their home and buy them more time to work out a modification. This is not necessarily the case. The filing will stop the sale of the property, but only temporarily, usually six weeks to several months. In this instance, the lender will file a motion with the court allowing the property to be removed from bankruptcy protection to complete the foreclosure process.
While there is nothing easy about making the decision to file for bankruptcy, you should enlist the help of a bankruptcy attorney. They can determine if filing for bankruptcy or allowing a short sale or foreclosure on your home, is in your best interest. They understand the different types of bankruptcy and will work with you to help you build a secure financial future.
Source: Foxbusiness.com, "Can Bankruptcy Cause Me to Lose My Home?" Justin Harelik, Feb. 7, 2012
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