Test Your Bankrupcty Knowledge

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Posted in bankruptcy quiz , bankruptcy test , Erie PA Bankruptcy Blog , Foster Law Offices , meadville bankruptcy

MYTH: If you have been SUED by a creditor, it is too LATE to file for Bankruptcy.

MYTH: If you have been sued by a creditor it is too LATE to file for Bankruptcy.
TRUTH... Watch our video for the TRUTH about BANKRUPTCY...

Visit our YOUTUBE channel as we BUST more Bankruptcy Myths!

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Posted in bankruptcy myths , creditor lawsuits , Foster Law Offices , mr debt buster

Unemployment Rates Impact Number of Foreclosures

It's Friday... The topic of the day is foreclosure. We found a great article featured in USA Today yesterday. The article talks about foreclosures and how various metropolitan areas have been impacted.

The pace of foreclosure filings slowed last year in the nation's hardest-hit housing markets but picked up in other U.S. metropolitan areas.

 

High unemployment drove up foreclosures in 72% of 206 leading metropolitan areas last year, including many not hit as hard by the initial foreclosure waves that pounded cities in Nevada, California and Florida, market researcher RealtyTrac reports today.

Las Vegas posted the nation's highest metropolitan foreclosure rate, with one of nine homes receiving a foreclosure filing last year. That was down 7% from 2009.

Foreclosure filings dropped year-over-year in 17 of the 20 leading metro areas that had the highest foreclosure rates, RealtyTrac says. Nationwide, activity rose almost 2%. While activity fell in some of the hard-hit areas, it increased in others.

Filings rose 3% in the Boise City-Nampa, Idaho, area last year from 2009. Greeley, Colo., saw a 12% rise. In both, one in 21 homes received a foreclosure filing last year.

The Atlanta region posted a 21% jump in filings last year. One in 23 homes received a foreclosure filing.

Nationwide, the rate was one in 45 homes.

"The recession has been brutal. The side effect of that is typically more foreclosures," says Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University.

The Seattle-Tacoma area also saw a 23% jump in foreclosure filings last year. Houston's rose 26%. But activity in those areas last year was still below the national average, RealtyTrac says.

"Foreclosures became more widespread in 2010 as high unemployment drove activity up," says James Saccacio, RealtyTrac CEO.

Despite some dips in hard-hit areas, foreclosure levels remained five to 10 times higher than historic norms in most of those markets, Saccacio said.

Activity will roar back in those regions, says Mark Zandi, chief economist of Moody's Analytics.

Last fall, major mortgage servicers, including Bank of America, delayed foreclosure activity as they revamped paperwork following revelations that foreclosure documents may have been improperly prepared. Zandi says the delays were more pronounced in the biggest housing-bust markets.

He expects foreclosure activity to pick up substantially in those areas in the next few months as the foreclosure process issues are resolved. Almost 2.9 million U.S. homes received foreclosure filings last year, a record high.

From Erie to Seattle - families, corporations and even states have been impacted by deep debt - forcing them to contemplate if bankruptcy is an option. If you are deep in debt, being harrassed by creditors or losing sleep at night - visit our website or give us a call - we offer a free consultation and would be glad to examine your personal financial situation to see if bankruptcy is the right option for you.

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Posted in bank of america , bankruptcy , foreclosure , realty trac , USA today

States Allowed to File Bankruptcy, Could be a Reality Soon

Yes, you read that headline correctly the first time. According to a report by Reuters, legislation is expected to be introduced to Congress within the next month - that would allowed U.S. States to file bankruptcy. Newt Gingrich, the former speaker of the House of Representative broke his silence to Reuters on Friday, January 21, 2011.

According to Gingrich there is support both in the House and Senate, and lawmakers have been examining this possibility for almost three or months. It is expected that the proposed legislation will face some resistence with Democrats still in control of the Senate and White House. According to the Retuters report,

Because states are sovereign, they cannot declare bankruptcy as cities can, and most have provisions in their constitutions that make defaulting on debt next to impossible.

Some states have already said, "No Thanks" - California, New York and Illinois announced Friday that they have interest in using bankruptcy to solve their fiscal problems. According to Reuters,

California is struggling to close a $25 billion budget gap, California already holds Moody's Investors Service's lowest state credit rating -- a distinction it shares with Illinois.

Despite teh recession ending in mid-2009, many states' economies are still fragile with revenue well below the levels reached before the recession and high unemployment rates making a bad situation, worse.

Many lawmakers from both parties are concerned Congress may have to step in again with an expensive fix and feel that the new legisltation of allowing states to file for bankruptcy would allow them to renege on their pension promises and other obligations to state employees.

"The very fact of the bill existing... allows governors to sit down with unions and say: 'Look you, negotiate with us or I'm taking the state into bankruptcy,'" Gingrich said.

We will continue to keep you posted as this story advances in coming weeks, to read the entire story at Reuters, visit their site.

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Posted in bankruptcy , Budget Gap , California Bankruptcy , Illinois Bankruptcy , Newt Gingrich , Senate , State Bankruptcy

Orange County Choppers - Bankruptcy Rumors!

According to a report published January 25, 2011 by USA Today...

A flurry of rumors flew around the Web today that the TV-famous Orange County Choppers was bankrupt.

Paul Teutel Sr.'s bike works has a long history of legal melodrama, including the nasty lawsuit between colorful Paul Sr. and Jr., as Junior went his own way. But the current posts making the rounds refer to a foreclosure lawsuit actually filed in November (according to a report here in OCC's hometown Newburgh, N.Y., newspaper here) by GE Capital, the lender for OCC's headquarters building.

According to the report, the bike works, like lots of homes, is underwater on its two mortgages. It missed payments in July, which OCC's lawyer told the Times-Herald Record was a ploy to get GE to renegotiate the $12.5 million in loans on a building he estimates now worth no more than $8 million.

OCC and GE apparently are playing chicken, but the lawyer, Richard Mahon, told the paper that OCC and Paul Sr., in November at least, were not broke.

To read the entire story, check out the article in USA Today.

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Posted in Orange County Choppers Bankruptcy Rumors

How did they lose ALL of that money ??

OK, you've got me! You have read the long list of famous celebrities who filed bankruptcy, and I know you are asking yourself, seriously how did they spend all of that money ? The answer is too quickly!

All kidding aside, bankruptcy can happen to anyone - it does not discriminate based upon beauty, job title or how good of a person you are in, in fact you can have a perfect financial plan and circumstances can change in an instant, leaving you facing bankruptcy.

Today, we are going to focus on a celebrity bankruptcy case that made headlines around the world and in the rap community - the bankruptcy case of Marion Knight, Jr better known as Suge Knight,  former CEO of Death Row Records.

Suge Knight, co-founder and former CEO of Death Row Records, made his name and his fortune in the hip hop community, when his record label dominated the charts with a long list of successful artists including Tupac Shakur, Dr. Dre, Snoop Dogg and Tha Dog Pound.

His circumstances changed, when Dr. Dre decided to leave and form his own label. Things continued to decline and turned tragic when Tupac Shakur was murdered in a drive-by shooting in Las Vegas NV in September of 1996.

In March 1997, Shakur's East Coast rival, The Notorious B.I.G., was murdered in a similar fashion and speculation immediately arose that Knight was involved

In between, the tragic losses of Tupac Shakur and The Notorius B.I.G. - Shuge Night, violated his probation, a choice that cost him his freedom.  In 1997, he was sentenced to nine years for the violation.
He was released four years later but he didn't stay out of trouble for long in 2003, he was again sent to proison for violating parole after stricking a parking lot attendant.

The tragedy, violence and speculation led to the decline of the label. Despite trying to save the label by releasing a new Snoop Dogg album and posthumous Tupac Shakur albums, the label was in financial trouble.

His label was in financial trouble and he was also facing civil litigation, in which he was ordered to pay $107 million dollars to Lydia Harris, who claimed she was cheated out of a 50% stake in Death Row Records.

On April 4, 2006, Suge Knight filed bankruptcy. According to Wikipedia,

"Bankruptcy documents filed showed Knight had no income this year from employment or operation of a business. According to financial records, his bank account contained just $11, and he owned clothing worth $1,000, furniture and appliances valued at $2,000, and jewelry worth $25,000. He also testified that the last time he had checked the label’s financial records was at least 10 years prior. Knight’s lawyer said that his client was still “at the helm” of Death Row and had been working on securing distribution deals for the label’s catalog."

Suge Knight missed two meetings with creditors after injuring himself in a motorcycle accident and experiencing a death in his family. On July 7, 2007 a federal judge ordered a bankruptcy trustee takeover of Suge Knight's Death Row Records, saying the record label had undergone a gross amount of mismanagement.

Knight filed for Chapter 11 Bankruptcy protection, which allows a company to continue business operations while restructuring.

In June 2007, he placed his seven-bedroom, 9½-bath home in Malibu on the market for $6.2 million as part of his "financial makeover". The mansion was finally sold in December 2008 in bankruptcy court for $4.56 million.

To read more about Suge Knight's Bankruptcy, click here.
Need more information on bankruptcy or want to schedule a free consultation ? Contact Foster Law Offices.

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Posted in Celebrity Bankruptcy , Chapter 11 Bankruptcy , Suge Knight

Bankruptcy DOES NOT Make You a Failure!

It's a common emotion for people to feel down when they have problems with debt. You are not alone. Harassing Phone Calls from creditors, family problems, piles of bills - there is light at the end of the tunnel.
Foster Law Offices provides bankruptcy services to Northwestern PA and can help you learn the difference between debt consolidation, Chapter 7 Bankruptcy, Chapter 11 Bankruptcy and Chapter 13 Bankruptcy.

Back to the " you are not alone"... some of the richest, most successful and beautiful people in the world have filed bankruptcy - and I bet you had no idea. Their legacy was based upon their achievements and their talents, not a rough patch in their life. Bankruptcy is not a reflection of your talents or you as a person.

Here's a list of some legends who filed bankruptcy and who are famous - Enjoy!

• Phineas Taylor (P.T.) Barnum - Founder of Barnum Circus
• Kim Basinger - Actress
• L. Frank Baum - Wizard of Oz author
• King Edward II - 14th century English King
• Lorraine Bracco - Actress (Dr. Melfi - Sopranos) 
• Mathew Brady - Distinguished Civil War photographer
• Toni Braxton - Singer
• George Clinton - Singer ("Atomic Dog")
• Samuel L. Clemens ("Mark Twain") - Author
• Natalie Cole - Singer
• Gary Coleman - Actor (Arnold - Different Strokes)
• John Connally - Former Texas Governor
• Francis Ford Coppola - Film Director/Producer
• Cathy Lee Crosby - Actress
• Vic Damone - Singer
• Dorothy Dandrdge - Actress
• Dino De Laurentis - Film Producer
• Walt Disney - Film Producer & Theme Park Pioneer
• Eddie Fisher - Actor
• Mick Fleetwood - Singer (Fleetwood Mac)
• Heidi Fleiss - Clothing Line Founder & Famous Hollywood Madam
• Henry Ford - First two automobile companies failed 
• William Fox - Co-founder of 20th Century Fox Film Corporation
• Marvin Gaye - Singer
• Andy Gibb - Singer
• Charles Goodyear - Founder of Goodyear Tire Co.
• Ulysses S. Grant - 18th U.S. President & Civil War General
• Bob Guccione - Publisher/Founder of Penthouse Magazine
• Merle Haggard - Bakersfield, California raised County & Western Singer 
• Corey Haim - Actor (Star of The Lost Boys (1987))
• Dorothy Hamill - Olympic Ice Skater
• M.C. Hammer - Singer/Rapper ("Can't Touch This")
• Richard Harris - Actor/Producer/Director
• Isaac Hayes - Songwriter/Musician/Singer
• Henry John Heinz - Famous Condiment Manufacturer
• Sherman Hemsley - Actor (George Jefferson from The Jeffersons)
• Milton Snavely Hershey - Founder of Hershey's Foods Corp.
• Ron Isley - Singer
• Jermaine Jackson - Singer (Michael Jackson's brother) 
• Joe & Katherine Jackson - Parents of the Michael Jackson
• La Toya Jackson - Singer (Michael Jackson's sister)
• Randy Jackson - Singer (Michael Jackson's brother)
• Tito Jackson - Singer (Michael Jackson's brother)
• Thomas Jefferson - American Founding Father and President
• Don Johnson - Actor/Producer
• Kacey Jones - Singer
• Chaka Kahn - 80's R & B Singer
• Larry King - Talk-show Host/Author
• Bowie Kuhn - Former Major League Baseball Commissioner
• Lorenzo Lamas - Actor
• Cyndi Lauper - 80's Singer
• Stan Lee - Co-creator of Spider Man, The Incredible Hulk, The X-Men, etc.
• Jerry Lewis - Actor
• Jerry Lee Lewis - Singer
• Meat Loaf - Singer
• Jorge & Joanne Lopes - Winners of the $110.3 million 2002 Big Game Multi-state Lotto jackpot. 
• Wolfgang Amadeus Mozart - Famous Musical Composer
• Willie Nelson - Country & Western Singer/Songwriter
• Wayne Newton - Famous Singer/Actor who regularly performs in Las Vegas 
• Immanuel Nobel - Father of Alfred Nobel (who founded Nobel prizes)
• Johnny Paycheck - Country & Western Singer
• Tom Petty - Singer
• Susan Powter - Exercise/Fitness Expert
• Burt Reynolds - Actor/Director
• Debbie Reynolds - Actress/Singer
• Rembrandt Heremenszoon Van Rijn - Famous Dutch painter
• Juan Rodriguez - $149 million New York Mega Millions Lotto jackpot winner
• (He filed shortly before winning). 
• Mickey Rooney - Actor
• Harry Saltzman - Film Producer (James Bond movies)
• Shenandoah - Country Music Band 
• Anna Nicole Smith - Model/Actress
• James & Lynne Spears - Britney Spear's parents
• William G. Stern - British property mogul
• J. Fife Symington - Governor of Arizona
• Donald Trump's Trump Hotels and Casino Resorts Inc.
• Mike Tyson - Boxer
• Johnny Unitas - Hall of Fame Quarterback
• Oscar Wilde - Acclaimed Author and Poet
• Tammy Wynette - Singer

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Posted in famous bankruptcy , famous people