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Tuesday, February 25, 2014

Custody Battle Expenses Lead to Bankruptcy

It happens every day to women and men across America, but it makes headlines when it happens to celebrities. The heart wrenching process of fighting for custody of your children is often made more devastating because mounting legal fees can send your finances into a downward spiral that ends in bankruptcy.

Recently Oksana Grigorieva, Mel Gibson’s former girlfriend, filed for bankruptcy after their protracted legal battle over custody of their daughter, Lucia. Although Grigorieva won $750,000 to be paid out over the next few years, her debts are now significantly more than her assets. She has declared about $438,000 in debt and only $48,000 in assets. In her bankruptcy filings, she claims that the majority of her debt is due to legal fees associated with her custody battle with Gibson.

Many people find themselves in financial difficulties following divorce or custody battles. With the help of an experienced bankruptcy attorney, you can start putting your financial life back together.

Friday, January 03, 2014

Charitable Donations Help Nashville Symphony Avoid Bankruptcy

With the help of 2013's most charitable celebrity Taylor Swift, the Nashville Symphony avoided having to close its doors and file bankruptcy in 2013. The year had brought a lot of uncertainty for the future of the symphony. They faced the threat of foreclosure along with bankruptcy and member musicians took a 15 percent pay cut to help keep the symphony from closing its doors.

Taylor Swift made a $100,000 donation to the floundering group, and they are now in full swing of their 2013-2014 season. Many members of the Nashville community have started to attend performances and rally around the organization that was so close to ending its long run with bankruptcy.

At this time of year, it's good to remember that even dire stories can have a happy ending through the generosity and support of the community. Even if you need to file bankruptcy to get your financial life in order, there are bankruptcy lawyers who can help you get your financial life back on track and make a new beginning for yourself and your family in the new year!

Friday, December 13, 2013

Negotiations Continue in Detroit Bankruptcy

In early January, Detroit will likely file its first proposed reorganization plan in its Chapter 9 bankruptcy. Creditors are feeling the pressure now to negotiate settlement. They run the risk of losing out in the long run if they do not settle soon.

With about $18 billion in debt and long-term liabilities, Detroit will make cuts where it can to settle its outstanding liabilities at the lowest cost to the city. If creditors do not vote to support the plan, Detroit attorneys could ask the judge to approve the plan without creditor approval.

Several of the major creditors have already filed for appeal, but higher courts don't often overturn lower court rulings that rely so heavily on the facts of the case. Detroit's largest union AFSCME Council 25 and two pension funds are participating in the appeals but also pursuing mediation aggressively to bring the bankruptcy to a resolution that everyone can live with.

The city would like to exit bankruptcy by September of 2014, but getting the creditors to approve a plan is key in moving the bankruptcy forward swiftly. 

Wednesday, July 31, 2013

A Speedy Bankruptcy for Detroit?

The U.S. Bankruptcy judge overseeing the city of Detroit's bankruptcy filing has proposed an October trial date and a deadline of March 1, 1014 for the city to file its reorganization plan.

In the October hearing, the court will hear objections to the eligibility of Detroit to file bankruptcy. If allowed, Detroit’s bankruptcy will be the largest Chapter 9 bankruptcy in U.S. history. Under the court’s proposed schedule, creditors will have until August 19 to file their objections to Detroit’s bankruptcy case.

Detroit will need to prove in October that it cannot pay its debts and has made a good-faith effort to negotiate with its creditors or that there are simply too many creditors to reasonably negotiate with.

Tight deadlines would help Detroit move through the bankruptcy process more quickly. It took Stockton, California, almost a year to get through the eligibility portion of the proceedings. With over $18 billion in liabilities for Detroit, a quick proceeding could get the city back on its feet a little sooner.

Thursday, June 27, 2013

Gossip Girl Star Filing for Bankruptcy

Kelly Rutherford, star of the TV show Gossip Girl, filed for bankruptcy this week after a lengthy and costly divorce from her ex-husband, a German businessman based in Monaco, France. With almost $1.5 million reported in legal fees, Rutherford found herself with more debt than she could afford.

She also owed about $350,000 for income tax and more than $25,000 to credit cards. Her total debts are estimated to be over $2 million, and her monthly income is only around $1,200.

If Kelly Rutherford’s situation sounds familiar, it’s because it’s a common story across America. All too often, people find that their income cannot come close to paying off their debts, especially when faced with a long, expensive custody battle in a divorce.  

Many people feel ashamed that they’ve reached a point in life where bankruptcy seems like the best option. The truth is bankruptcy helps many people out of their overwhelming debt every day.

A bankruptcy attorney can evaluate your full financial picture and help you make an informed decision about the best plan to get debt free.

If you thing bankruptcy could be the right solution for you, contact an experienced bankruptcy attorney in your area.

Wednesday, May 15, 2013

Cancer correlated with Increased Risk of Bankruptcy

A new study concludes people with cancer are at a greater risk of bankruptcy than people without cancer. The study consisted of 197,840 adults with cancer living in western Washington. Each of these patients was matched with a person without cancer. Each pair was the same age and sex, and lived within the same zip code.

Here is what the study found:

  • 2.2 percent of adults with cancer filed for bankruptcy, while 1.1 percent of the adults without cancer had filed for bankruptcy.
  • Cancer patients must likely to file for bankruptcy were non-white women under the age of 40.
  • Cancer patients over the age of 65 filed for bankruptcy the least. Incidentally, these patients probably had Medicare coverage and Social Security.
Cancer treatment is expensive. When it affects a younger person who may have an entry level income, student debt and other financial obstacles, cancer treatment can quickly lead to insurmountable debt. Oftentimes insurance policies do not cover all of the associated costs of diagnosis and treatment, and patients may find themselves owing hundreds of thousands of dollars.

Bankruptcy should be a last resort, but if you've decided to file for it, you should be represented by an experienced attorney.

If you are planning to file for bankruptcy, please contact an experienced bankruptcy attorney in your area using our directory.

Tuesday, April 30, 2013

Eastman Kodak may be nearing Exit from Bankruptcy

Eastman Kodak Co, the photography giant, looks like it may be resolving its bankruptcy with an agreement yesterday to sell its remaining business to its British pension fund. This sale would amount to about $650 million for Kodak.

The agreement is still awaiting approval in bankruptcy court. A Reuters article indicates this could be a major step for Kodak to exit from bankruptcy. As part of its bankruptcy, the company's lenders required Kodak to sell its consumer and document imaging businesses, which is what the $650 million deal is.

Big companies and corporations seem to be in the news for bankruptcy a lot lately. As an individual, couple or family facing insurmountable debt, the idea of bankruptcy can be overwhelming and a little intimidating.

Filing for bankruptcy is a major decision requiring a lot of thought and planning. In most cases, bankruptcy is a last resort after all your other options have been exhausted. By meeting with an experienced bankruptcy lawyer, you can discuss your options and explore whether bankruptcy is the right option for you at this point.

To find out whether bankruptcy may be right for you, please contact an experienced lawyer in your area.
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Disclaimer: The information throughout The Bankruptcy Directory is not intended to be or to replace legal advice. The information throughout The Bankruptcy Directory is intended to provide general information regarding bankruptcy law. If you are interested in filing for bankruptcy, contact a bankruptcy lawyer in your area.