How did breast cancer survivor Lisa Lindsay end up behind bars? She didn't pay a medical bill -- one the Herrin, Ill., teaching assistant was told she didn't owe. "She got a $280 medical bill in error and was told she didn't have to pay it," The Associated Press reports. "But the bill was turned over to a collection agency, and eventually state troopers showed up at her home and took her to jail in handcuffs."
Although the U.S. abolished debtors' prisons in the 1830s, more than a third of U.S. states allow the police to haul people in who don't pay all manner of debts, from bills for health care services to credit card and auto loans. In parts of Illinois, debt collectors commonly use publicly funded courts, sheriff's deputies, and country jails to pressure people who owe even small amounts to pay up, according to the AP.
Under the law, debtors aren't arrested for nonpayment, but rather for failing to respond to court hearings, pay legal fines, or otherwise showing "contempt of court" in connection with a creditor lawsuit. That loophole has lawmakers in the Illinois House of Representatives concerned enough to pass a bill in March that would make it illegal to send residents of the state to jail if they can't pay a debt. The measure awaits action in the senate.
"Creditors have been manipulating the court system to extract money from the unemployed, veterans, even seniors who rely solely on their benefits to get by each month," Illinois Attorney General Lisa Madigan said last month in a statement voicing support for the legislation. "Too many people have been thrown in jail simply because they're too poor to pay their debts. We cannot allow these illegal abuses to continue."
Read the rest of the article at Yahoo
Tuesday, April 24, 2012
AG HORNE FILES LAWSUIT ALLEGING CONSUMER FRAUD VIOLATIONS AGAINST LOAN MODIFICATION COMPANY
April 23, 2012
Press Release
For immediate Release Contact: Amy Rezzonico (602) 542-8019 www.AZAG.gov | Facebook | Twitter
AG HORNE FILES LAWSUIT ALLEGING CONSUMER FRAUD VIOLATIONS AGAINST LOAN MODIFICATION COMPANY
PHOENIX
(Monday, April 23, 2012) -- Attorney General Tom Horne today filed a
lawsuit against Mortgage Relief Group, d.b.a. Mortgage Assistance Group,
and its owner, Stan Allotey, alleging that the Defendants engaged in
deceptive loan modification services.
The lawsuit alleges that since at least February of 2008, the company deceived consumers into paying fees, ranging from $995 to $3,245, for loan modification services by misrepresenting their ability to help consumers obtain mortgage relief and save their homes, thereby violating the Arizona Consumer Fraud Act. The Defendants are also accused of using deceptive means to lure financially distressed homeowners into paying up-front fees with promises that the company would prevent foreclosure and save the consumers’ homes by negotiating modifications of mortgage loans. Also, the company allegedly continued to charge or collect up-front fees even after the enactment of the Arizona Foreclosure Consultant Regulation Law’s ban on charging or collecting such fees. Once homeowners paid the upfront fees, the Defendants allegedly often failed to perform their part of the contract, keep homeowners informed of the status of their application for a modification, refund fees, or otherwise do anything to earn their fee. “Predatory loan modification scams are an unfortunate part of the housing crisis,” Horne said. “Cases such as this show that every consumer needs to thoroughly research the companies with which they do business. And it is a reminder that nobody should ever agree to paying up-front fees for services of this kind.” The Complaint alleges that defendants violated the Arizona Consumer Fraud Act, the Arizona Telephone Solicitations Act, and the Arizona Foreclosure Consultant Regulation Law, and asks the Court to bar Defendants from conducting any further foreclosure consulting business, impose civil penalties against the Defendants of up to $10,000 for each violation, pay the State of Arizona its costs of investigation and prosecution, and provide refunds to consumers. The case is being handled by Assistant Attorney General Alyse Meislik in the Consumer Protection and Advocacy Division. The Attorney General recommends that homeowners who are in or facing foreclosure contact their lender or servicer or a government-approved housing counselor. The Arizona Foreclosure Help-Line, 1-877-448-1211, refers consumers to HUD-approved housing counseling agencies who provide loan modifications and other services at no cost. If you feel you have been a victim of consumer fraud, please contact the Arizona Attorney General’s Office of Consumer Information & Complaints Unit at (602) 542-5763 / (520) 628-6504 / (800) 352-8431. You may also file a consumer complaint online at:http://www.azag.gov/consumer/complaintform.html. |
Tuesday, April 17, 2012
Student Loan Forgiveness Act Introduced in Congress
US House Representative Hansen Clarke from Michigan introduced HR 4170, or the Student Loan Forgiveness Act, on March 8th, a bill that is extremely important in this economy, especially to the Millennium Generation. If passed, the bill would forgive outstanding student loan debt to any person who makes consecutive payments of at least 10 percent of discretionary income for ten years. It also includes forgiveness options for going into public service or teaching.
This bill could not come at a better time and in many ways is extremely overdue given that student loan debt now exceeds credit card debt and is set to surpass 1 trillion in 2012. Today’s recent college graduates (myself included) are faced with the worst job market post World War II, an ever increasing cost of living, and the highest rate of student loan debt in history. Rent, gas, and food are all substantially more expensive than 25 years ago when our parents were graduating from college.
Read the rest of the article at Borderless News and Views
This bill could not come at a better time and in many ways is extremely overdue given that student loan debt now exceeds credit card debt and is set to surpass 1 trillion in 2012. Today’s recent college graduates (myself included) are faced with the worst job market post World War II, an ever increasing cost of living, and the highest rate of student loan debt in history. Rent, gas, and food are all substantially more expensive than 25 years ago when our parents were graduating from college.
Read the rest of the article at Borderless News and Views
Monday, April 16, 2012
Arizona tops Nevada as nation's No. 1 state for foreclosures
Arizona has broken Nevada's 62-month streak as the foreclosure capital of the nation.
The state's foreclosure rate in March actually dropped, but Nevada's dropped more. California kept its third-place ranking.
Data released Thursday by foreclosure tracking firm RealtyTrac shows banks actually repossessed nearly 3,600 Arizona homes last month. More than 5,900 homeowners received a notice of default, the first step in the foreclosure process. In all, that's a 40 percent drop in foreclosure activity.
Read the rest of the article at The Republic
The state's foreclosure rate in March actually dropped, but Nevada's dropped more. California kept its third-place ranking.
Data released Thursday by foreclosure tracking firm RealtyTrac shows banks actually repossessed nearly 3,600 Arizona homes last month. More than 5,900 homeowners received a notice of default, the first step in the foreclosure process. In all, that's a 40 percent drop in foreclosure activity.
Read the rest of the article at The Republic
Paying home mortgage no longer Americans' top priority
A leading credit information company says the lingering effects of the recession have turned the country's bill-paying habits upside down.
A TransUnion study finds car payments have become the priority when it comes to paying bills in America.
It used to be that cash-strapped Americans would always pay their home loans first, then their credit card and car loans.
"Nowadays, consumers seem to be opting to pay the auto loan first, and then the credit card. And only last do they pay the mortgage," says Ezra Becker, TransUnion's vice president of research and consulting.
He says folks need that car to get to work or look for work. So, the mortgage and credit card payments are dependent on the vehicle.
Read the rest of the article at WWL AM 870
A TransUnion study finds car payments have become the priority when it comes to paying bills in America.
It used to be that cash-strapped Americans would always pay their home loans first, then their credit card and car loans.
"Nowadays, consumers seem to be opting to pay the auto loan first, and then the credit card. And only last do they pay the mortgage," says Ezra Becker, TransUnion's vice president of research and consulting.
He says folks need that car to get to work or look for work. So, the mortgage and credit card payments are dependent on the vehicle.
Read the rest of the article at WWL AM 870
US Mortgage Lenders Fear Effect Of New Mortgage Rule
--New U.S. consumer bureau designing Dodd-Frank "qualified mortgage" rule
--Rule expected to be finished this summer sets out new standards for U.S. mortgage industry
--33 groups, mostly banking and housing organizations, urge strict standards not be enacted
WASHINGTON -- U.S. mortgage lenders and real-estate agents are growing concerned that a new set of mortgage-lending standards under development by a new consumer regulator will imperil the fledgling housing recovery and limit the availability of home loans.
In recent weeks, after meetings with consumer-bureau officials, several real-estate industry groups and some consumer- advocacy organizations have grown worried about how the Consumer Financial Protection Bureau could interpret the mortgage-lending rules, which it is aims to finish by this summer.
Read the rest of the article at NASDAQ
--Rule expected to be finished this summer sets out new standards for U.S. mortgage industry
--33 groups, mostly banking and housing organizations, urge strict standards not be enacted
WASHINGTON -- U.S. mortgage lenders and real-estate agents are growing concerned that a new set of mortgage-lending standards under development by a new consumer regulator will imperil the fledgling housing recovery and limit the availability of home loans.
In recent weeks, after meetings with consumer-bureau officials, several real-estate industry groups and some consumer- advocacy organizations have grown worried about how the Consumer Financial Protection Bureau could interpret the mortgage-lending rules, which it is aims to finish by this summer.
Read the rest of the article at NASDAQ
Foreclosure Filings Decline in U.S. to Lowest Since 2007
Foreclosure filings in the U.S. fell in the first quarter to their lowest level in more than four years after lenders under legal scrutiny slowed actions against delinquent homeowners, according to RealtyTrac Inc.
Default, auction and repossession notices were sent to 572,928 properties, down 2 percent from the previous three months and 16 percent from the first quarter of 2011. It was the lowest quarterly tally since the fourth quarter of 2007, the Irvine, California-based data firm said today in a statement. One in every 230 U.S. households received a filing.
“The low foreclosure numbers in the first quarter are not an indication that the massive reservoir of distressed properties built up over the past few years has somehow miraculously evaporated,” RealtyTrac Chief Executive Officer Brandon Moore said in the statement. “The dam may not burst in the next 30 to 45 days, but it will eventually burst, and everyone downstream should be prepared for that to happen.”
The five largest banks agreed Feb. 9 to a $25 billion settlement after their foreclosure practices were subjected to a 16-month probe by all 50 state attorneys general. The accord removed some barriers to property seizures and cleared the way for lender actions to resume without releasing banks from individual or class-action claims or criminal liability.
Read the rest of the article at Bloomberg Businessweek
Default, auction and repossession notices were sent to 572,928 properties, down 2 percent from the previous three months and 16 percent from the first quarter of 2011. It was the lowest quarterly tally since the fourth quarter of 2007, the Irvine, California-based data firm said today in a statement. One in every 230 U.S. households received a filing.
“The low foreclosure numbers in the first quarter are not an indication that the massive reservoir of distressed properties built up over the past few years has somehow miraculously evaporated,” RealtyTrac Chief Executive Officer Brandon Moore said in the statement. “The dam may not burst in the next 30 to 45 days, but it will eventually burst, and everyone downstream should be prepared for that to happen.”
The five largest banks agreed Feb. 9 to a $25 billion settlement after their foreclosure practices were subjected to a 16-month probe by all 50 state attorneys general. The accord removed some barriers to property seizures and cleared the way for lender actions to resume without releasing banks from individual or class-action claims or criminal liability.
Read the rest of the article at Bloomberg Businessweek
The zombie files: Nearly 7,000 stagnating foreclosure cases lie dormant in Palm Beach County’s court
Nearly 7,000 stagnating foreclosure cases lie dormant in Palm Beach County's courts, creating a payment-free limbo for some homeowners but a stain of vacant and abandoned homes in deteriorating neighborhoods.
These sleeper files, which have remained inactive for a year or longer, date as far back as 1997, according to documents provided to The Palm Beach Post by the clerk of courts.
But most are from the early years of the housing crash when lenders feverishly sought to repossess homes, unaware that the frenetic pace would cause a second crisis based on faulty documents and unlawful corner-cutting.
While an unknown number of dormant files are mistakes, such as one party forgetting to request a dismissal after an agreement is reached, others remain open but unmoving because of homeowner bankruptcy, loan modification negotiations or bank neglect.
Read the rest of the article at WPTV
These sleeper files, which have remained inactive for a year or longer, date as far back as 1997, according to documents provided to The Palm Beach Post by the clerk of courts.
But most are from the early years of the housing crash when lenders feverishly sought to repossess homes, unaware that the frenetic pace would cause a second crisis based on faulty documents and unlawful corner-cutting.
While an unknown number of dormant files are mistakes, such as one party forgetting to request a dismissal after an agreement is reached, others remain open but unmoving because of homeowner bankruptcy, loan modification negotiations or bank neglect.
Read the rest of the article at WPTV
Bank of America sues itself: Foreclosure ineptitude or conflict of interest Continue reading on Examiner.com Bank of America sues itself: Foreclosure ineptitude or conflict of interest
Bank of America has recently had run of negative publicity, and a good portion of it involves inept execution in its handling of foreclosures. Allegations of wrongful foreclosures, inaccurate title documents, and questionable foreclosure tactics, have not put Bank of America in a positive light.
Lynn Szymnoniak, an attorney in Palm Beach County, Florida, was instrumental in uncovering mortgage and foreclosure fraud involving JPMorgan Chase, Wells Fargo, Ally Financial, Citigroup, and Bank of America. Her lawsuit alleged the aforementioned financial institutions engaged in a nationwide practice of failing to obtain required documents used to identify the true owner of a mortgage. In far too many cases those financial institutions initiated foreclosure proceedings even though they were not the true owners of the property. They were involved in outright fraud in their representation and/or questionable actions in their zeal to foreclose. A settlement was reached in the amount of $25 billion.
In Palm Beach County, Florida alone, Bank of America has sued itself eleven times in foreclosure cases. Ms. Szymnoniak said, “There are likely at least 100 examples of the same thing happening across the state.” One example of Bank of America suing itself; on March 29, 2012, in a foreclosure matter filed in Palm Beach County, Bank of America is listed as plaintiff and Alegandro Caro, Nicola Revell and Bank of America are listed as defendants.
Zjumana Bauwens, a Bank of America spokesperson, has said, “We are servicing the first mortgage on behalf of an investor and we own the second mortgage. Naming the second lien holder in the suit is necessary to eliminate the junior interest.”
Read the rest of the article at Fort Lauderdale Business Law Examiner
Lynn Szymnoniak, an attorney in Palm Beach County, Florida, was instrumental in uncovering mortgage and foreclosure fraud involving JPMorgan Chase, Wells Fargo, Ally Financial, Citigroup, and Bank of America. Her lawsuit alleged the aforementioned financial institutions engaged in a nationwide practice of failing to obtain required documents used to identify the true owner of a mortgage. In far too many cases those financial institutions initiated foreclosure proceedings even though they were not the true owners of the property. They were involved in outright fraud in their representation and/or questionable actions in their zeal to foreclose. A settlement was reached in the amount of $25 billion.
In Palm Beach County, Florida alone, Bank of America has sued itself eleven times in foreclosure cases. Ms. Szymnoniak said, “There are likely at least 100 examples of the same thing happening across the state.” One example of Bank of America suing itself; on March 29, 2012, in a foreclosure matter filed in Palm Beach County, Bank of America is listed as plaintiff and Alegandro Caro, Nicola Revell and Bank of America are listed as defendants.
Zjumana Bauwens, a Bank of America spokesperson, has said, “We are servicing the first mortgage on behalf of an investor and we own the second mortgage. Naming the second lien holder in the suit is necessary to eliminate the junior interest.”
Read the rest of the article at Fort Lauderdale Business Law Examiner
The future of foreclosures
It's been five years since the housing bubble burst, yet hundreds of thousands of California homeowners remain in default and en route to foreclosure. Some of these troubled borrowers will benefit from new consumer protections included in a nationwide settlement that five major banks agreed to in February, including a requirement that foreclosure proceedings wait until the bank considers a modified mortgage that would be less costly to borrower and lender alike. Those protections, however, extend no further than the five banks and the loans they service. This week, state lawmakers are set to take up a series of mortgage-related bills backed by Atty. Gen. Kamala Harris, beginning with a measure (AB 1602) to enshrine the national settlement's safeguards into California law and apply them to all borrowers in the state. Also included in the package are proposals to improve lenders' record keeping and extend the statute of limitations for prosecuting certain mortgage-related crimes.
The measures are sensible and important, yet they're running into resistance from bank lobbyists. One of the main complaints is that some of the bills would encourage defaulting borrowers to file lawsuits to drag out the foreclosure process, even if they have no intention or ability to keep their homes.
Complaints about potentially abusive lawsuits would be more persuasive if they weren't coming from an industry whose companies foreclosed on properties despite falsified court affidavits (by "robo-signing" documents) and serious discrepancies in the ownership records. Nevertheless, to minimize the risk of spurious claims and delaying tactics, sponsors have amended the legislation to significantly narrow individuals' right to sue. Borrowers also would be deterred from making multiple spurious applications for mortgage modifications.
Read the rest of the article at The Los Angeles Times
The measures are sensible and important, yet they're running into resistance from bank lobbyists. One of the main complaints is that some of the bills would encourage defaulting borrowers to file lawsuits to drag out the foreclosure process, even if they have no intention or ability to keep their homes.
Complaints about potentially abusive lawsuits would be more persuasive if they weren't coming from an industry whose companies foreclosed on properties despite falsified court affidavits (by "robo-signing" documents) and serious discrepancies in the ownership records. Nevertheless, to minimize the risk of spurious claims and delaying tactics, sponsors have amended the legislation to significantly narrow individuals' right to sue. Borrowers also would be deterred from making multiple spurious applications for mortgage modifications.
Read the rest of the article at The Los Angeles Times
After two bankruptcies, Buffets managers share bonuses
Michael Andrews, chief executive of Buffets Holdings Inc., helped guide the restaurant owner through bankruptcy twice in the past four years. Both times, he was rewarded with court-approved bonuses.
Andrews, Chief Financial Officer Keith Wall and the Eagan-based company's concept officer are among 16 managers who may split about $2.3 million during Buffets' current bankruptcy. The three men also shared in about $1 million in bonuses handed out in the company's 2008 case, according to court records.
Both bonus programs took advantage of a common loophole to avoid a 2005 federal law that restricts extra pay for executives who put their companies into bankruptcy. Instead of payments made through so-called Key Employee Retention Plans, which Congress made harder to hand out, bankrupt companies now routinely set up Key Employee Incentive Plans, claiming the extra pay is tied to progress in reorganizing operations.
Read the rest of the article at the Star-Tribune
Andrews, Chief Financial Officer Keith Wall and the Eagan-based company's concept officer are among 16 managers who may split about $2.3 million during Buffets' current bankruptcy. The three men also shared in about $1 million in bonuses handed out in the company's 2008 case, according to court records.
Both bonus programs took advantage of a common loophole to avoid a 2005 federal law that restricts extra pay for executives who put their companies into bankruptcy. Instead of payments made through so-called Key Employee Retention Plans, which Congress made harder to hand out, bankrupt companies now routinely set up Key Employee Incentive Plans, claiming the extra pay is tied to progress in reorganizing operations.
Read the rest of the article at the Star-Tribune
California city, known for Olympic training, faces bankruptcy
Crippled by a staggering legal judgment, a California town and resort area, a popular training destination for Olympic athletes, faces bankruptcy throwing the town's future into question.
"We have a major judgment against us," Assistant Town Manager Marianna Marysheva-Martinez said Thursday, to the Associated Press. "With the magnitude, it's almost unimaginable for us how we're going to deal with this judgment."
According to the New York Times, The Sierra Nevada ski resort town of Mammoth Lakes, which sits five hours north of L.A., lost a breach-of-contract lawsuit after it had tried to back out of a 1997 agreement with Mammoth Lakes Land Acquisition that gave a developer the right to develop a hotel and buy land in return for improving the local airport.
But the town backed out of the deal after the Federal Aviation Administration, which provided Mammoth Lakes with grants to improve the airport, objected to development nearby.
Read the rest of the article at Digital Journal
"We have a major judgment against us," Assistant Town Manager Marianna Marysheva-Martinez said Thursday, to the Associated Press. "With the magnitude, it's almost unimaginable for us how we're going to deal with this judgment."
According to the New York Times, The Sierra Nevada ski resort town of Mammoth Lakes, which sits five hours north of L.A., lost a breach-of-contract lawsuit after it had tried to back out of a 1997 agreement with Mammoth Lakes Land Acquisition that gave a developer the right to develop a hotel and buy land in return for improving the local airport.
But the town backed out of the deal after the Federal Aviation Administration, which provided Mammoth Lakes with grants to improve the airport, objected to development nearby.
Read the rest of the article at Digital Journal
Warren Sapp filed for bankruptcy to avoid going to jail
Warren Sapp says a bad construction deal at the worst possible time sent him spiraling into debt that led him to file for bankruptcy last week.
Sapp made his first comments on the situation to Tampa Bay Times columnist Gary Shelton and said he was motivated to file for bankruptcy with $6.7 million worth of debt because he didn’t want to go to jail.
“Do you think I wanted to declare bankruptcy?'' Sapp told Shelton. "Do you think if there was any other way possible I would have done it? It was either this or go to jail. Those were my choices.''
[ Also: Lingerie Football League goes on hiatus for 2012 season ]
Sapp estimates he grossed about $60 million during his playing days, primarily with the Tampa Bay Buccaneers, and now he’s reduced to not much. It’s a little hard to believe one failed investment project, building homes in Fort Pierce, Fla., broke him. But that’s what Sapp explains.
Since, he’s become the butt of plenty of jokes. Sapp claims he’s lost not only his Super Bowl XXXVII ring but also his ring he earned as a member of a national championship team at the University of Miami. Losing one ring? OK. Losing two rings? Come on. They’re really been misplaced?
Read the rest of the article at Yahoo
Sapp made his first comments on the situation to Tampa Bay Times columnist Gary Shelton and said he was motivated to file for bankruptcy with $6.7 million worth of debt because he didn’t want to go to jail.
“Do you think I wanted to declare bankruptcy?'' Sapp told Shelton. "Do you think if there was any other way possible I would have done it? It was either this or go to jail. Those were my choices.''
[ Also: Lingerie Football League goes on hiatus for 2012 season ]
Sapp estimates he grossed about $60 million during his playing days, primarily with the Tampa Bay Buccaneers, and now he’s reduced to not much. It’s a little hard to believe one failed investment project, building homes in Fort Pierce, Fla., broke him. But that’s what Sapp explains.
Since, he’s become the butt of plenty of jokes. Sapp claims he’s lost not only his Super Bowl XXXVII ring but also his ring he earned as a member of a national championship team at the University of Miami. Losing one ring? OK. Losing two rings? Come on. They’re really been misplaced?
Read the rest of the article at Yahoo
Boston Bank Questions Church’s Eligibility to File for Bankruptcy
A key creditor in the bankruptcy filing of a historic Boston church has raised objections about the church’s eligibility for bankruptcy, and sources suggest that this challenge may throw a wrench in the church’s debt relief plans.
This week, OneUnited Bank submitted papers to a bankruptcy court that claim the Chapter 11 bankruptcy filing of Charles Street AME Church, a historic venue in Roxbury, Massachusetts, should be voided because the church did not have the right to seek bankruptcy protection.
According to a recent report from the Boston Herald, the church filed for Chapter 11 bankruptcy in order to avoid foreclosure, but OneUnited Bank, the church’s largest creditor, claims that the church is being disingenuous when it claims poverty.
Sources say that the church allegedly combines its assets with the First District of the African Methodist Episcopal church, which has more than $500 million in assets.
Read the rest of the article at Total Bankruptcy
This week, OneUnited Bank submitted papers to a bankruptcy court that claim the Chapter 11 bankruptcy filing of Charles Street AME Church, a historic venue in Roxbury, Massachusetts, should be voided because the church did not have the right to seek bankruptcy protection.
According to a recent report from the Boston Herald, the church filed for Chapter 11 bankruptcy in order to avoid foreclosure, but OneUnited Bank, the church’s largest creditor, claims that the church is being disingenuous when it claims poverty.
Sources say that the church allegedly combines its assets with the First District of the African Methodist Episcopal church, which has more than $500 million in assets.
Read the rest of the article at Total Bankruptcy
In bankruptcy, religious order tries to cap damages from molestation charges
The Irish Christian Brothers, who founded Brother Rice and Leo high schools in Chicago, and St. Laurence High School in Burbank, are trying to cap damages from allegations some members of their order molested the children they taught.
The Brothers are in bankruptcy, having filed for Chapter 11 reorganization protection. And so they’ve set Aug. 1 as the last date anyone can file sex abuse claims against any members of the order.
“After that date, if you’ve been abused, physically or sexually, you will not be able to bring a lawsuit against the Christian Brothers,” said attorney Mark McKenna, who has sued the brothers on behalf of Chicago-area victims.
Over the last several weeks, letters about the case and the deadline were sent to alumni who attended the schools during years when known or alleged abusers were assigned there.
Three brothers who at one time worked in Chicago have been identified as sexual predators in lawsuits filed in other states, primarily Washington, where the order also ran schools and an orphanage: Brother Edward Courtney, Brother Robert Brouillette, and Brother D.P. Ryan.
Read the rest of the article at The Chicago Sun-Times
The Brothers are in bankruptcy, having filed for Chapter 11 reorganization protection. And so they’ve set Aug. 1 as the last date anyone can file sex abuse claims against any members of the order.
“After that date, if you’ve been abused, physically or sexually, you will not be able to bring a lawsuit against the Christian Brothers,” said attorney Mark McKenna, who has sued the brothers on behalf of Chicago-area victims.
Over the last several weeks, letters about the case and the deadline were sent to alumni who attended the schools during years when known or alleged abusers were assigned there.
Three brothers who at one time worked in Chicago have been identified as sexual predators in lawsuits filed in other states, primarily Washington, where the order also ran schools and an orphanage: Brother Edward Courtney, Brother Robert Brouillette, and Brother D.P. Ryan.
Read the rest of the article at The Chicago Sun-Times
Student Loan Debt Seen as Growing Threat to the Economy
Move over, mortgages. Get out of the way, Greece. Another economic doomsday scenario is emerging.
Student loan debt has reached about $870 billion, exceeding credit cards and auto loans, and balances are expected to continue climbing, the Federal Reserve Bank of New York said last month. In February, the National Association of Consumer Bankruptcy Attorneys referred to a “student loan ‘debt bomb’” and wondered if it was shaping up to become “America’s next mortgage-style economic crisis.” Such a burden could crimp an already weak economy.
“Student debt poses a large and growing threat to the stability of our economy,” Illinois Attorney General Lisa Madigan testified March 20 before a U.S. Senate judiciary subcommittee hearing in Washington on the looming student debt crisis.
“Just as the housing crisis has trapped millions of borrowers in mortgages that are underwater, student debt could very well prevent millions of Americans from fully participating in the economy or ever achieving financial security,” Madigan said.
Read the rest of the article at LoanSafe
Student loan debt has reached about $870 billion, exceeding credit cards and auto loans, and balances are expected to continue climbing, the Federal Reserve Bank of New York said last month. In February, the National Association of Consumer Bankruptcy Attorneys referred to a “student loan ‘debt bomb’” and wondered if it was shaping up to become “America’s next mortgage-style economic crisis.” Such a burden could crimp an already weak economy.
“Student debt poses a large and growing threat to the stability of our economy,” Illinois Attorney General Lisa Madigan testified March 20 before a U.S. Senate judiciary subcommittee hearing in Washington on the looming student debt crisis.
“Just as the housing crisis has trapped millions of borrowers in mortgages that are underwater, student debt could very well prevent millions of Americans from fully participating in the economy or ever achieving financial security,” Madigan said.
Read the rest of the article at LoanSafe
On the tracks to bankruptcy: California High Speed Rail
Golden State’s $68 billion train boondoggle showcases government folly
California’s fanciful bullet train project embodies everything that is wrong with government today. The state’s High-Speed Rail Authority on Tuesday released details of a revised business plan that claims laying down tracks from Los Angeles to San Francisco will now cost a mere $68 billion instead of $98 billion - as if that were a bargain.
President Obama’s infatuation with the effort to create another government-subsidized rail entitlement means the rest of the country is on the hook for at least half of this still considerable sum. Retirees in Florida and schoolteachers in Mississippi, who will never ride California’s train, will be forced to pay for it anyway.
Politicians asked Golden State voters in 2008 whether they wanted this shiny new train set. Fifty-three percent said “sure,” without devoting much thought to the cost of their choice. To put $68 billion in perspective, five major airlines offer flights from Los Angeles to San Francisco for $200 or less - an amount that includes $39.60 in various taxes. Volume discounts aside, for the cost of the rail infrastructure, California could purchase 340 million round-trip tickets - enough to provide nine round-trip flights for each of the state’s documented residents.
Read the rest of the article at The Washington Times
California’s fanciful bullet train project embodies everything that is wrong with government today. The state’s High-Speed Rail Authority on Tuesday released details of a revised business plan that claims laying down tracks from Los Angeles to San Francisco will now cost a mere $68 billion instead of $98 billion - as if that were a bargain.
President Obama’s infatuation with the effort to create another government-subsidized rail entitlement means the rest of the country is on the hook for at least half of this still considerable sum. Retirees in Florida and schoolteachers in Mississippi, who will never ride California’s train, will be forced to pay for it anyway.
Politicians asked Golden State voters in 2008 whether they wanted this shiny new train set. Fifty-three percent said “sure,” without devoting much thought to the cost of their choice. To put $68 billion in perspective, five major airlines offer flights from Los Angeles to San Francisco for $200 or less - an amount that includes $39.60 in various taxes. Volume discounts aside, for the cost of the rail infrastructure, California could purchase 340 million round-trip tickets - enough to provide nine round-trip flights for each of the state’s documented residents.
Read the rest of the article at The Washington Times
Saturday, April 14, 2012
Filing bankruptcy? What you can and can't do with your tax refund
I am a bankruptcy attorney in Phoenix ($995/Chapter 7) and find that most people considering filing for bankruptcy have no idea that it is very serious how they treat their tax refund. In fact, it is so important that it can affect when someone files for bankruptcy. The reason is because the bankruptcy laws prohibit you from spending that money frivolously. If you receive a tax refund and spend it on frivolous items within 90 days of filing for bankruptcy, the court may demand that you pay it back into the bankruptcy for your creditors. It is best to spend it on necessities like rent, food, gas and utilities. Don't spend it on creditors you intend to discharge, like credit cards and medical bills, because the bankruptcy court may seize it back and redistribute it amongst all your creditors. And if you intend to file for bankruptcy, you're really just throwing that money away by paying creditors you intend to write off.If you receive a tax refund during your bankruptcy, the bankruptcy court will seize it and distribute it amongst your creditors. So if you are expecting a tax refund, it's best to file bankruptcy after you have received it and spent it on regular expenses.
The timeframe for scrutinizing your tax refunds lasts well after your bankruptcy is discharged, until you receive your next refund. The bankruptcy court will likely seize that refund too, so many of my clients choose to have the least amount possible withheld from their paychecks after filing bankruptcy to avoid that scenario.
The most important thing to be aware of about tax refunds in bankruptcy is that you could get into real trouble in this area if you are not careful. A couple of weeks ago when I was in a 341 Meeting of the Creditors with a client, we observed another bankruptcy proceeding go sour. The woman filing bankruptcy told the trustee that she had received a $5000 tax refund a few days earlier, which her daughter took out of her checking account. The trustee announced that she was going to hire an attorney and sue her daughter to get the money. The lesson is to always be upfront about your activity and consult an attorney about bankruptcy so you don't make mistakes like that.
The good news is you can safely spend your tax refund on a bankruptcy proceeding. More than 200,000 households around the country will do that this year.
Saturday, April 7, 2012
Hassayampa Golf Course files bankruptcy - how is a corporate bankruptcy different from personal bankruptcy?
Businesses that are incorporated and a separate legal entity where an individual is not personally liable, and where there are significant assets, usually file for corporate bankruptcy, without including anyone personally (Chapter 11). A Chapter 11 will reorganize or liquidate the business in order to pay its debts. The debtor may propose its own restructuring plan, but after a certain amount of time has passed, the creditors get to propose alternative plans, and vote on which plan will be accepted. Usually by filing Chapter 11, a business intends to stay in business instead of dissolving.
Although an individual will have a bankruptcy on their credit history if they file for personal bankruptcy, it is usually significantly cheaper to file for personal bankruptcy than corporate bankruptcy, which usually costs around $5000 or more.
The Hassayampa Golf Course in Prescott, Arizona filed this year for Chapter 11 bankruptcy. This comes as no surprise considering the economy; recreational and luxury businesses are suffering severely. What appears to have gotten the golf course into financial difficulty was taxes, it owes $162,724.72 in taxes. Politicians call for higher taxes on businesses, but in this economy taxes are taking a toll on businesses. Generally, those taxes will not be dischargeable in the bankruptcy. There are also 1375 creditors listed on the bankruptcy petition. Many businesses cannot survive after a corporate bankruptcy, because they still must pay back much of the debt, and end up converting to a Chapter 7 bankruptcy and dissolving. Considering the economy is not picking up, I give Hassayampa a 50/50 chance at lasting another year after the bankruptcy.
Read more about the Hassayampa bankruptcy here.
The Alexander Bankruptcy Law Firm provides low low cost Chapter 7 and 13 personal bankruptcies. $995 Chapter 7 or $2500 Chapter 13 bankruptcies plus court filing fee. Free consultation with a compassionate attorney who will handle your case personally. Call 24/7, available to meet with you around your schedule. 602-910-6812. Conveniently located in Central Phoenix along the Camelback corridor. AlexanderBankruptcyLawFirm.com
Friday, April 6, 2012
Foreclosure Review: Just 3 Percent Of Eligible Borrowers Apply For Review
Bob Hale nearly lost his Concord, Mass., home to foreclosure in 2010 as a result of what he claims were bank errors.
That would make him a prime candidate for the Independent Foreclosure Review, a program overseen by federal bank regulators that is designed to grant cash payouts to homeowners who prove that their loan was mismanaged during the foreclosure process.
But Hale is taking a pass. "I'm reluctant to waste my time," he wrote in a recent email exchange. "I just don't trust a word they say," he said, referring to several banks' close involvement in shaping the review process.
Hale is one of millions of borrowers who have not bothered to apply for relief through this program. So far, just 136,000, or 3 percent of qualifying borrowers, have mailed in forms requesting a loan audit, according to the Office of the Comptroller of the Currency, one of the regulators overseeing the program. Mailings to notify borrowers eligible to apply to program were first sent beginning Nov. 1, 2010.
Read the rest of the article at The Huffington Post
That would make him a prime candidate for the Independent Foreclosure Review, a program overseen by federal bank regulators that is designed to grant cash payouts to homeowners who prove that their loan was mismanaged during the foreclosure process.
But Hale is taking a pass. "I'm reluctant to waste my time," he wrote in a recent email exchange. "I just don't trust a word they say," he said, referring to several banks' close involvement in shaping the review process.
Hale is one of millions of borrowers who have not bothered to apply for relief through this program. So far, just 136,000, or 3 percent of qualifying borrowers, have mailed in forms requesting a loan audit, according to the Office of the Comptroller of the Currency, one of the regulators overseeing the program. Mailings to notify borrowers eligible to apply to program were first sent beginning Nov. 1, 2010.
Read the rest of the article at The Huffington Post
Pima County foreclosures: Notices double the rate of sales
Home foreclosure filings in Pima County outpaced foreclosure sales during the first quarter by nearly a 2-1 ratio, keeping optimism in check for the new construction industry.
Year-to-date, 2,527 trustee’s sale notices have been issued compared to 1,342 foreclosure sales. Although the pace of notices has slowed moderately, down 5.9 percent year over year, sales have plunged 34.6 percent during the same period.
Read the rest of the article at Inside Tucson Business
Year-to-date, 2,527 trustee’s sale notices have been issued compared to 1,342 foreclosure sales. Although the pace of notices has slowed moderately, down 5.9 percent year over year, sales have plunged 34.6 percent during the same period.
Read the rest of the article at Inside Tucson Business
Americans brace for next foreclosure wave
Half a decade into the deepest U.S. housing crisis since the 1930s, many Americans are hoping the crisis is finally nearing its end. House sales are picking up across most of the country, the plunge in prices is slowing and attempts by lenders to claim back properties from struggling borrowers dropped by more than a third in 2011, hitting a four-year low.
But a painful part two of the slump looks set to unfold: Many more U.S. homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures.
"We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010," said Mark Seifert, executive director of Empowering & Strengthening Ohio's People (ESOP), a counseling group with 10 offices in Ohio.
"Last year was an anomaly, and not in a good way," he said.
Read the rest of the article at Reuters
But a painful part two of the slump looks set to unfold: Many more U.S. homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures.
"We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010," said Mark Seifert, executive director of Empowering & Strengthening Ohio's People (ESOP), a counseling group with 10 offices in Ohio.
"Last year was an anomaly, and not in a good way," he said.
Read the rest of the article at Reuters
Fewer Foreclosures on the Phoenix Market
Another sign for the valley housing market is positive, and it involves home auctions.
Reports say the housing collapse began in Phoenix. But now, housing prices are up 3 to 4 percent since last year.
Friday, we watched a trustee sales group bid on foreclosed homes outside the downtown Phoenix courthouse.
A small group, just a couple dozen people, are working at the public auction. That’s a big change from a short time ago.
Read the rest of the article at My Fox Phoenix
Reports say the housing collapse began in Phoenix. But now, housing prices are up 3 to 4 percent since last year.
Friday, we watched a trustee sales group bid on foreclosed homes outside the downtown Phoenix courthouse.
A small group, just a couple dozen people, are working at the public auction. That’s a big change from a short time ago.
Read the rest of the article at My Fox Phoenix
Avoid Foreclosure Expert, James Griffis, Announces the Launch of the New Website AvoidForeclosure.com
It is possible to avoid foreclosure, but few homeowners have immediate access to resources that teach them how to apply the information to their own unique situation. Some banks and mortgage lenders can be uncooperative with homeowners that have fallen 30 to 90 days past due or longer on a mortgage. Acting swiftly during the initial stages of the foreclosure process is how some homeowners are beating foreclosure and reversing the trend of high foreclosure statistics. Foreclosure expert, James Griffis, announces the launch of the http://www.avoidforeclosure.com website. This new website is designed to provide helpful information to individuals and families facing foreclosure.
The increase of foreclosures in Michigan, Arizona, Texas and Florida has been publicized in the national spotlight for last few years. In some of these cases, homeowners that started out with what they thought was the perfect mortgage have been devastated by job loss and other financial hardships. According to recently published housing studies, Foreclosure can happen to any homeowner or landlord and there is little information that is available publicly to stop it. The helpful articles written by industry specialists in foreclosure at AvoidForeclosure.com are designed to help more people find alternatives to the process of foreclosure.
Read the rest of the article at Digital Journal
The increase of foreclosures in Michigan, Arizona, Texas and Florida has been publicized in the national spotlight for last few years. In some of these cases, homeowners that started out with what they thought was the perfect mortgage have been devastated by job loss and other financial hardships. According to recently published housing studies, Foreclosure can happen to any homeowner or landlord and there is little information that is available publicly to stop it. The helpful articles written by industry specialists in foreclosure at AvoidForeclosure.com are designed to help more people find alternatives to the process of foreclosure.
Read the rest of the article at Digital Journal
'Homeowner Bill of Rights' would bolster National Mortgage Settlement
California's attorney general and a host of Golden State lawmakers are pushing for a "Homeowner Bill of Rights" designed to protect homeowners from abusive mortgage practices and help devastated communities recover from the foreclosure crisis.
The move capitalizes on the $25 billion National Mortgage Settlement's provision that allows states to press mortgage lenders for greater redress arising from lenders' foreclosure abuses after the housing market crashed.
Read the rest of the article at The Californian
The move capitalizes on the $25 billion National Mortgage Settlement's provision that allows states to press mortgage lenders for greater redress arising from lenders' foreclosure abuses after the housing market crashed.
Read the rest of the article at The Californian
Court Approves $26 Billion Foreclosure Settlement
A federal judge approved the $26 billion settlement deal reached between the nation's five largest mortgage lenders and the attorneys general of 49 states and the District of Columbia over foreclosure processing abuses.
Judge Rosemary Collyer in the U.S. District Court for the District of Columbia approved consent judgments with Bank of America, Citibank, JPMorgan Chase, Wells Fargo, and Ally Financial (the former GMAC) late Thursday.
The approval clears the way for the banks to compensate homeowners who may have been impacted by the so-called robo-signing scandal, in which bank employees signed hundreds of documents a day attesting to facts that they had little or no knowledge of.
Read the rest of the article at 10 News
Judge Rosemary Collyer in the U.S. District Court for the District of Columbia approved consent judgments with Bank of America, Citibank, JPMorgan Chase, Wells Fargo, and Ally Financial (the former GMAC) late Thursday.
The approval clears the way for the banks to compensate homeowners who may have been impacted by the so-called robo-signing scandal, in which bank employees signed hundreds of documents a day attesting to facts that they had little or no knowledge of.
Read the rest of the article at 10 News
Fed moves to encourage banks to turn foreclosures into rentals
The Federal Reserve has released guidelines that could encourage the practice of converting lender-owned foreclosed homes into rental properties.
By converting foreclosures to rentals with steady cash flow, banks could reduce the number of their "substandard assets," a classification used by banking regulators to determine the health of banks.
The central bank also said that lenders could receive Community Reinvestment Act credit for providing housing to low-income and moderate-income people by successfully converting foreclosed homes into rentals.
The policies could help encourage a nascent move to turn banks' foreclosure inventory into rental properties and then sell those homes to investors. The Fed earlier this year released a housing market white paper arguing that removing some of the barriers for converting foreclosures into rental properties could help stabilize the housing market.
Read the rest of the article at The Los Angeles Times
By converting foreclosures to rentals with steady cash flow, banks could reduce the number of their "substandard assets," a classification used by banking regulators to determine the health of banks.
The central bank also said that lenders could receive Community Reinvestment Act credit for providing housing to low-income and moderate-income people by successfully converting foreclosed homes into rentals.
The policies could help encourage a nascent move to turn banks' foreclosure inventory into rental properties and then sell those homes to investors. The Fed earlier this year released a housing market white paper arguing that removing some of the barriers for converting foreclosures into rental properties could help stabilize the housing market.
Read the rest of the article at The Los Angeles Times
The death spiral of solar bankruptcies (& counting)
The solar death spiral has been long and ugly. Over the past year, there have been over a dozen stalwarts and startups that have headed to bankruptcy court.
Two companies even filed for bankruptcies in this week alone: manufacturer Q-Cells, which was the worlds largest solar cell maker in 2008 and power plant developer Solar Trust of America, which just a year ago was on its way to build a few gigawatts of solar projects in the American Southwest.
Read the rest of the article at Gigaom
Two companies even filed for bankruptcies in this week alone: manufacturer Q-Cells, which was the worlds largest solar cell maker in 2008 and power plant developer Solar Trust of America, which just a year ago was on its way to build a few gigawatts of solar projects in the American Southwest.
Read the rest of the article at Gigaom
CFP Board to out planners who go bankrupt
As the number of certified financial planners declaring bankruptcy grows rapidly, the organization that grants the credential is trying to make it easier for the public to know whether a planner has gone belly up.
Certified Financial Planner Board of Standards Inc. (CFP Board)
The Certified Financial Planner Board of Standards Inc. today announced that it will no longer initiate disciplinary proceedings against a planner after his or her first bankruptcy. Instead, the board will highlight the bankruptcy on the planner's profile on the CFP website and include his or her name in a news release.
The new bankruptcy rule, which will go into effect July 1, is one of several that the CFP Board has approved. Another reduces the full-time experience requirement from three years to two years if a CFP candidate has worked directly with clients under the supervision a certified planner.
Read the rest of the article at Investment News
Certified Financial Planner Board of Standards Inc. (CFP Board)
The Certified Financial Planner Board of Standards Inc. today announced that it will no longer initiate disciplinary proceedings against a planner after his or her first bankruptcy. Instead, the board will highlight the bankruptcy on the planner's profile on the CFP website and include his or her name in a news release.
The new bankruptcy rule, which will go into effect July 1, is one of several that the CFP Board has approved. Another reduces the full-time experience requirement from three years to two years if a CFP candidate has worked directly with clients under the supervision a certified planner.
Read the rest of the article at Investment News
Second Mortgage Loan After Bankruptcy
If you have filed a bankruptcy, getting the 2nd mortgages or home equity loans is a good idea. Beside that, you should have to be aware of any possible disadvantages of the bad credit loans, as bankruptcy makes your credit scores fall deeply.
The bad thing is that many financial experts discourage bankruptcies. If you have field Chapter 7 or Chapter 13 bankruptcy, you may be charged with a high interest rate. But you can get the better rate if you have fully known and understood the basics.
Second Mortgage Loan After Bankruptcy
It is a common thing that it will be hard to get any loan if you just have filed for bankruptcy. Even if you are succeeded on getting any loans, you will have to pay a high interest rate that will automatically increase your monthly payments. However, getting new credit accounts after bankruptcy is a good way to rebuild your credit score. But it is not easy to be approved for new credit accounts. There is another choice. It is the 2nd mortgage loan.
Read the rest of the article at News Olio
The bad thing is that many financial experts discourage bankruptcies. If you have field Chapter 7 or Chapter 13 bankruptcy, you may be charged with a high interest rate. But you can get the better rate if you have fully known and understood the basics.
Second Mortgage Loan After Bankruptcy
It is a common thing that it will be hard to get any loan if you just have filed for bankruptcy. Even if you are succeeded on getting any loans, you will have to pay a high interest rate that will automatically increase your monthly payments. However, getting new credit accounts after bankruptcy is a good way to rebuild your credit score. But it is not easy to be approved for new credit accounts. There is another choice. It is the 2nd mortgage loan.
Read the rest of the article at News Olio
Phoenix bankruptcy filings still declining
Metro Phoenix bankruptcies continued their downward trend in March, with the number of filings dropping 26 percent from the same month in 2011. The decline corresponds with an easing of consumer debt pressures nationally, according to a new report.
The 2,074 filings were the highest total so far this year, but March tends to be a busy month, as people use their income-tax refunds to pay attorney fees. The latest tally was well below the 2,813 filings in March 2011 and the 3,063 in March 2010.
Valley bankruptcies have declined, on a year-over-year basis, for 14 consecutive months.
For all of Arizona, filings were down 28 percent from a year earlier and also have decreased for 14 straight months on a year-over-year basis.
Nationally, the 122,118 filings in March were down 17 percent from a year earlier, reported the American Bankruptcy Institute and Eqip Systems.
Read the rest of the article at AZ Central
The 2,074 filings were the highest total so far this year, but March tends to be a busy month, as people use their income-tax refunds to pay attorney fees. The latest tally was well below the 2,813 filings in March 2011 and the 3,063 in March 2010.
Valley bankruptcies have declined, on a year-over-year basis, for 14 consecutive months.
For all of Arizona, filings were down 28 percent from a year earlier and also have decreased for 14 straight months on a year-over-year basis.
Nationally, the 122,118 filings in March were down 17 percent from a year earlier, reported the American Bankruptcy Institute and Eqip Systems.
Read the rest of the article at AZ Central
Best credit cards after bankruptcy
More than 1.4 million Americans claimed bankruptcy during the preceding year as of September 2011 (the latest statistics available), punctuating the frustration many Americans felt at the height of the economic crisis. Filing for bankruptcy protection under either Chapter 7 or Chapter 13 requires overcoming extreme emotions. We fear the social stigma of being classified "bankrupt," and we fear getting rejected for credit cards, checking accounts and other basic financial services.
Lenders understand that a bankruptcy rarely reflects your true relationship with money. A Texas A&M University research team found that more than 4 out of 5 bankruptcies resulted from "adverse events" outside the control of filers. According to studies published in The American Journal of Medicine, more than half our country's bankruptcies involved significant medical debt of over $5,000.
Read the rest of the article at Fox Business
Lenders understand that a bankruptcy rarely reflects your true relationship with money. A Texas A&M University research team found that more than 4 out of 5 bankruptcies resulted from "adverse events" outside the control of filers. According to studies published in The American Journal of Medicine, more than half our country's bankruptcies involved significant medical debt of over $5,000.
Read the rest of the article at Fox Business
Bankruptcy judge approves Baltimore Jewish Times sale
A U.S. Bankruptcy Court judge approved the sale of a Baltimore Jewish paper for $1.26 million.
Judge Nancy Alquist said Friday that she was "enormously pleased" with the outcome of a bankruptcy auction on Monday in which a group of investors purchased the Baltimore Jewish Times, The Baltimore Sun reported.
In an auction Monday, Route 95 Publications purchased Alter Communications, the publisher of the Baltimore Jewish Times, which was founded in 1919. Alter filed for bankruptcy in 2010.
Read the rest of the article at JTA
Judge Nancy Alquist said Friday that she was "enormously pleased" with the outcome of a bankruptcy auction on Monday in which a group of investors purchased the Baltimore Jewish Times, The Baltimore Sun reported.
In an auction Monday, Route 95 Publications purchased Alter Communications, the publisher of the Baltimore Jewish Times, which was founded in 1919. Alter filed for bankruptcy in 2010.
Read the rest of the article at JTA
Bankruptcy May Loom For LightSquared
LightSquared, the capital venture whose plan to build a wireless network imploded because its technology blocked GPS signals, may file for bankruptcy, said published reports.
Several news organizations reported this week that the hedge-fund-financed company, of Reston, Va., has until April 30 to persuade bondholders not to pull the plug, despite big losses in 2011 and a Federal Communications Commission order in February revoking the networks conditional network approval.
Philip Falcone, manager of the hedge fund that has invested about $3 billion in LightSquared, said that a voluntary bankruptcy might be a way to keep the company alive in a bid to complete the network, reports said. He was also reported looking into signal-filtering technology to solve interference problems.
The Reuters news service reported that creditors of Falcones Harbinger Capital Partners might force LightSquared into bankruptcy if he cannot forge a deal by the end of April. The report said several other hedge funds were considering holding LightSquared in default of a $1.6 billion loan.
Read the rest of the article at Aviation Pros
Several news organizations reported this week that the hedge-fund-financed company, of Reston, Va., has until April 30 to persuade bondholders not to pull the plug, despite big losses in 2011 and a Federal Communications Commission order in February revoking the networks conditional network approval.
Philip Falcone, manager of the hedge fund that has invested about $3 billion in LightSquared, said that a voluntary bankruptcy might be a way to keep the company alive in a bid to complete the network, reports said. He was also reported looking into signal-filtering technology to solve interference problems.
The Reuters news service reported that creditors of Falcones Harbinger Capital Partners might force LightSquared into bankruptcy if he cannot forge a deal by the end of April. The report said several other hedge funds were considering holding LightSquared in default of a $1.6 billion loan.
Read the rest of the article at Aviation Pros
L.A. budget chief warns of bankruptcy without tax hikes, layoffs
Stagnant revenue and rising employee costs threaten City Hall with a $222-million shortfall, official says. A proposal to outsource ambulance services provokes anger from firefighters union.
Los Angeles' top budget official raised the specter of bankruptcy Friday in a sweeping report that calls for new taxes, possible layoffs and the privatization of some city services.
Chief Administrative Officer Miguel Santana said rising employee costs combined with flat-lining revenues have left the city in a precarious position. Even after reducing its workforce by 4,900 positions in recent years, the city faces a $222-million budget shortfall, he said, a figure that is expected to rise to $427 million by 2014-15.
Read the rest of the article at The Los Angeles Times
Los Angeles' top budget official raised the specter of bankruptcy Friday in a sweeping report that calls for new taxes, possible layoffs and the privatization of some city services.
Chief Administrative Officer Miguel Santana said rising employee costs combined with flat-lining revenues have left the city in a precarious position. Even after reducing its workforce by 4,900 positions in recent years, the city faces a $222-million budget shortfall, he said, a figure that is expected to rise to $427 million by 2014-15.
Read the rest of the article at The Los Angeles Times
Kodak, Under Bankruptcy Protection, Wants To Hand Out $13.5M In Bonuses
Eastman Kodak Co. is seeking permission to pay about 300 executives and other employees a total of $13.5 million in bonuses to persuade them to stay with the company as it reorganizes under bankruptcy protection.
The Rochester-based photography company said the targeted employees have knowledge and skills critical to help the business emerge from Chapter 11 and would be difficult to replace if they left to pursue other offers. They include 119 middle managers who would share $8.5 million of the sum.
Read the rest of the article at The Huffington Post
The Rochester-based photography company said the targeted employees have knowledge and skills critical to help the business emerge from Chapter 11 and would be difficult to replace if they left to pursue other offers. They include 119 middle managers who would share $8.5 million of the sum.
Read the rest of the article at The Huffington Post
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