Bankruptcy Filings Down 9 1/2 Percent in Wisconsin

Oct. 21 (Source: By Paul Gores, Milwaukee Journal Sentinel) - The pace of bankruptcy filings in Wisconsin has slowed this year — a welcome trend, but one that attorneys who deal with insolvent consumers and business people said won’t improve significantly until joblessness wanes.

Through the first nine months of 2011, federal bankruptcy filings were down 9.5% from the same time last year, to 21,167, U.S. Bankruptcy Court records show.

Most of those filings were for Chapter 7 bankruptcy, the type that wipes out debt such as credit card balances, utility bills and medical bills.

The state figures track closely with consumer bankruptcy filings nationally. Through the first three quarters in the United States, consumer filings decreased about 10%, to a little more than 1 million, the American Bankruptcy Institute reported.

Economist Jay Mueller said it makes sense that bankruptcies would start to decrease now because they lag the worst stress in the general economy, which occurred a couple of years ago.
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“I don’t think there is a lot to read into it other than to say there is a lag effect between a bad economy and bankruptcy filings,” Mueller, a portfolio manager for Wells Fargo Advantage Funds in Menomonee Falls, said of this year’s decrease.

Milwaukee bankruptcy attorney Robert Waud said he’s still seeing many people who have run their own business finally choose to throw in the towel. They often file for personal Chapter 7 bankruptcy.
“I’m busy. I’m seeing the same types of problems — the small-business person who doesn’t have any customers, and just a lot of people who are out of work,” said Waud, of Todd C. Esser & Associates.
Among recent bankruptcy filers at his office: cabinet makers for high-end homes and a repairer of hydraulics.

“Basically, what he did all his life was repair hydraulics on off-road machines for construction companies, and they just are not coming in the door,” Waud said.

Madison bankruptcy attorney Claire Ann Resop, of von Briesen & Roper, said she is seeing a lot of people who own small businesses that cater to minor luxuries instead of necessities, such as boutique clothing, furniture and flowers.

“I think the volume of business just doesn’t exist anymore,” she said.

Resop said the stigma of declaring bankruptcy seems to have lessened because in such a slow economy, so many have done it.

“I think the most stark change is businesspeople — higher-income people who were builders, developers, had their own business,” Resop said. “Because a lot of their acquaintances in the business, all of their professional friends, have also had to do it. They’re all in the same place. So I think they kind of look at each other and go, ‘Yeah, it’s the economy. It’s tough.’

Said Waud: “We’ve got to get people back to work before we can solve some of these problems.”

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Posted in bankruptcy attorney , bankruptcy filings , Chapter 7 Bankruptcy , US Bankruptcy Court , wisconsin bankruptcy

UB40 Files Bankruptcy

According to an article in Rolling Stone - British reggae pop stars UB40 have declared bankruptcy. A judge in Birmingham County has ruled that the band's assets can be seized in order to help pay off their debts, which were largely accumulated by their former management company Dep International Ltd., which went into insolvent liquidation back in 2008.
Liquidators are now entitled to the band's royalty payments for their back catalog, including their hit recordings of Neil Diamond's "Red Red Wine" and Elvis Presley's "(I Can't Help) Falling In Love With You." To make matters worse, the group must also pay the costs of their case, which is estimated to be around $88,000.

UB40 have faced major financial issues for many years now. Frontman Ali Campbell left the band in 2008 along with keyboardist Mickey Virtue as a result of money issues.

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Posted in asset liquidation , UB40 Bankruptcy

Chinese Restaurant May Face Bankruptcy After Dog Meat Rumor

With all of the "serious" bankruptcy news making headlines these days from the LA Dodgers to the State Capital... we decided to focus on some lighter bankruptcy news ... Who hasn't heard rumors of Chinese restaurant's using "dog meat" in their recipes?

One UK Woman says, she choked on a microchip, that formerly belonged to a racing greyhound. What?!?  Here's the article as published in the UK's Telegraph -

Estelle Johnston, who has run China Rose in Bawtry, near Doncaster, for almost three decades, spoke out after hearing several versions of a similar story from friends, neighbours and customers.

She said the rumour revolves around a woman diner who apparently choked on a microchip after eating a meal during a party at the venue, which was supposedly identified later as a chip which had been from a former racing greyhound.

It has been alleged that both police and paramedics were called to the restaurant to deal with the fictitious incident, with the accusation being repeated that retired greyhounds from Sheffield were being used in the food.

Mrs Johnston branded those behind the stories 'morons' and said her manager, Eugene Chee, had called her several times to say that bookings were being cancelled as a result of people believing what they heard.

She added: "Three weeks ago I got a call from the manager saying people were ringing up to say they thought we had been closed down.

"Later there was a call from a friend in Mansfield who understood we had been closed because we had dirty kitchens.

"Then the manager rang me again to say he thought we had a serious problem, because somebody had just phoned up and said they had heard that a diner had choked in the restaurant on a microchip from a dog.

"Since then people have been ringing us up saying they want to cancel and even asking for refunds on deposits they have made on bookings for the busy Christmas period. It is a nightmare.

"It is hard enough doing business at the moment without suffering an attack like this. My first attitude was to laugh it off, but the effects it is having are actually frightening."

Mrs Johnston, who lives in Bawtry, said she and her family had spent 27 years building up China Rose's envied reputation as one of South Yorkshire's best Chinese restaurants.

This year they are celebrating their 20th anniversary at their current premises and are making arrangements for a charity fashion show which she said will not be affected by the rumours.

She added: "My manager's wife is an interpreter for the NHS and when she started to ask colleagues about it their first reaction was: 'Are you going to tell me about the dog?'

"Some other friends said they were on their way back from a holiday in Tenerife and had heard another couple in the departures lounge talking about this and I've been told it is on Facebook.

"The moronic people who start these things have no idea of the implications. It takes years to build up a good reputation but it doesn't take long to get a bad one. This could absolutely ruin us."

According to Mr Chee, China Rose is not the first restaurant to be targeted, and said he had seen internet rumours about microchips relating to other Yorkshire venues and those further afield.
However, he said it would appear that the details about the use of greyhounds, which are notoriously difficult to rehome once their racing days are over, is a new addition in the Bawtry case.

The manager, who has worked in the Chinese restaurant trade for more than two decades said: "It is complete nonsense, but people are calling and wanting to cancel because of what they have heard.
"They say they understand the RSPCA have been involved and really believe the story. They have even said they have heard that the restaurant has been boarded up and closed.

"I am still getting telephone calls from customers who have heard different versions of the story which say we have gone bankrupt or have been forced into liquidation.

"It just absolute nonsense, nothing has changed and we are still trading as normal."

Doncaster Council's environmental health team said it had not received any complaints about China Rose, but was aware of the false rumours which were circulating about the greyhound and the microchip.

Officers have been to see Mrs Johnston and her staff in a bid to stamp out the stories and are set to produce a letter which will be displayed on the premises which they hope will help to scotch the rumours.

Peter Dale, the council's director of regeneration and environment, said: "The inspection of food at the restaurant has always shown good quality, reliably sourced, meat on the premises and never any suggestion of anything unusual."

 

 

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Posted in chinese restaurant bankruptcy , dog meat in chinese food rumor

Harrisburg Files For Bankruptcy Protection

(Wall Street Journal)
NEW YORK—After months of contentious debate among city and state officials, Harrisburg, Pa., filed for municipal bankruptcy protection, days before the state Senate was scheduled to vote on taking over the struggling capital city's finances.

The city, which faces $300 million in debt over a failed trash incinerator project, filed the paperwork in U.S. Bankruptcy Court for the Middle District of Pennsylvania, in Harrisburg. A faxed filing late Tuesday wasn't valid, according to Terry Miller, clerk of the bankruptcy court.

The overnight fax had first been reported by Bloomberg News.

Robert Philbin, a spokesman for Mayor Linda Thompson, who had opposed such a filing, said the mayor thinks the move is unfortunate and that it will complicate matters and add to expenses for the city. Mr. Philbin said the mayor would have preferred the council come to her with an alternative plan, and pointed to a recent poll of registered Harrisburg voters showing only 13% supported a bankruptcy filing.

On Aug. 31, the city council had rejected Ms. Thompson's financial recovery plan, which opened the door for Pennsylvania Gov. Tom Corbett to make good on his threat to take over the state capital's finances.

The plan called for an 8% property tax increase and the outsourcing of some city services, but didn't seek to raise revenue with a 1% sales tax surcharge or a tax on commuters, as some city officials had suggested. The mayor had also backed the state's previous proposals to sell the incinerator, as well as the city's parking-garage system.

Mr. Corbett had pledged state funding to the city if it adopted the recovery plan and warned the state wouldn't bail out the city if it rejected the proposal.

Pennsylvania's General Assembly has passed legislation that would allow it to establish a state-run panel to operate Harrisburg, or other cities that reject recovery plans, under Act 47 for aid to distressed municipalities. The state Senate is due to take up the legislation when it reconvenes next week.
City Councilman Brad Koplinski has long advocated for a bankruptcy filing and voted in favor of the filing on Tuesday to give Harrisburg court-ordered protection from its creditors while it seeks solutions to its financial crisis. The filing was made under Chapter 9, the municipal market's equivalent of Chapter 11.

But opponents believed such a filing would likely impose significant losses on bondholders, which could have ripple effects on the state's credit rating and the broader municipal-bond market.
In addition to Mr. Koplinski, council members Susan Brown-Wilson, Wanda Williams and Eugenia Smith voted in favor of the filing, while Kelly Summerford and Patty Kim joined Gloria Martin-Roberts in opposing the action.

Harrisburg is projected to run out of cash to pay bills and cover payroll costs by the fourth quarter.
The filing had little effect on the municipal bond market Wednesday because the city's troubles had been brewing for a long time and because local-government defaults remain rare.

"This has been one of the slowest-moving train wrecks in my memory," so it isn't likely to affect the market, said Christopher Ryon, a portfolio manager at Thornburg Investment Management in Santa Fe, N.M. "For the calendar year, if you include about $500 million in Harrisburg's liability, that would be $1.6 billion of defaults, which is still very low."

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Posted in bankruptcy filings , bankruptcy protection , Chapter 11 Bankruptcy , harrisburg bankruptcy , Municipal Bankruptcy , US Bankruptcy Court

Living Like A Celebrity Made Me Bankrupt!

MILLIONS of women dream of living like a celebrity, but life can become a nightmare for those who splash the cash.

An epidemic of overspending among women has been called the "Kerry Katona Effect" after the reality TV star went bankrupt due to her lavish lifestyle.

In just three months this year, 14,827 women were declared bankrupt and they now account for a record level of 48 per cent of personal insolvencies.

The Sun interviewed three women whose taste for all things expensive, took their bank accounts into the negatives - here is one of their stories:

Aimee, 35

AIMEE ROBINSON lives in Bexhill, East Sussex, with builder husband Marc, 37, and son Harry, 15. She has been bankrupt twice – in 1999 and 2006. She says:

"When I look back at my celebrity obsession now, it was horrific. I loved the WAG lifestyle and Cheryl Cole in particular. That was exactly the way I wanted to live.

"When I went out, I ordered Krug champagne for £150 a bottle – because that is what the stars drink.
"Even though the outfits I bought were expensive, I only wore them once. I read all the magazines to see what they were wearing and spent £800 on Dior handbags and £500 on Jimmy Choo shoes.

"My car had to look like one a celeb would drive so I bought a Mercedes SLK sports car and paid an extra £3,000 to have the dashboard encrusted with Swarovski diamonds.

"When Jessica Simpson was pictured with her Bichon Frise dog, I decided I had to have exactly the same dog. I bought a puppy for £500... and flew to America to buy her a designer outfit.

"I paid £1,000 every few months for hair extensions, had my teeth whitened, spent £1,000 on botox, £2,000 on lip injections and had a £10,000 breast enlargement, going from a 34A to a 34DD.

"At the time of my first bankruptcy I was a single mother, working as a beautician. I maxed up my credit cards and store cards until I couldn't pay any more. I was £20,000 in debt.

"The second time I had 30 credit and store cards and debts of £85,000. I'm glad I learned my lesson, but millions more young women are going to fall into the same trap."

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Posted in bankrupt women , Celebrity Bankruptcy , celebrity debt

Saab Cruising Closer to Bankruptcy

The administrator in charge of Saab's restructuring under court protection could pull the plug on the process as early as Tuesday, paving the way for declaring the carmaker bankrupt, daily newspaper Svenska Dagbladet reported.

Saab has struggled for months to stave off collapse, seeking new investors and selling off assets so it could pay suppliers and employees and resume production at its plant in Sweden. But it has still not received a vital bridge loan of €70m (£61m) that was secured by Chinese car firm Youngman, money that is key to its short-term survival.

The paper said negotiations were ongoing in the Swedish capital with Youngman, but the court-appointed administrator could decide as early as Tuesday to ask a court to end Saab's period of protection from creditors.

The administrator, Guy Lofalk, could not immediately be reached for comment.

Saab spokeswoman Gunilla Gustavs said the carmaker still expected to get the bridge loan. "We are still expecting the Youngman loan to come in," Gustavs said. She had no comment on when the money was expected or how long Saab could last without the cash.

Saab won breathing space from creditors in late September, but still needs fresh money to pay wages and suppliers while it restructures.

If the restructuring process looks unlikely to succeed, Saab's creditors, the administrator or Saab itself could ask for creditor protection to be withdrawn, Cecilia Tisell, a judge at the local court, told Reuters.

She said the court had not received any request of that kind.

"No, we have not heard anything like that at all from the Saab companies or Guy Lofalk," she said.
Victor Muller, chief executive of Swedish Automobile which owns Saab, declined to comment.
Swedish Automobile shares fell 7.2% by mid-morning.

Saab had hoped protection from creditors would allow it to survive until China's authorities approve a €245m investment by car firms Zhejiang Youngman Lotus Automobile and Pangda.

A decision by China's National Development and Reform Commission could come as early as Friday.
The paper also quoted Swedish Debt Office spokesman Daniel Barr, who rejected media reports the government could pay off Saab's debt to the European Investment Bank and convert the security on the loan to shares in Saab.

"No, the Debt Office does not have any such mandate," he said.

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Posted in carmaker bankrupt , creditor protection , Saab bankruptcy

Bankruptcy Talks Trouble AA Frequent Fliers

So, what happens to those unused frequent flier miles, if an AMR bankruptcy were to occur ?
What if you were sitting on a stash of unclaimed miles?

Thousands of frequently fliers are worried that their gold mine of AAdvantage frequent flier miles may not be worth a penny if the rocky financial situation at AMR Corp. - parent company of American Airlines continues to spiral downward.

"There’s some concern out there," said Tim Winship, publisher of FrequentFlier.com, who has received emails from worried fliers.

But if AMR were to file for protection from its creditors under Chapter 11 of the bankruptcy code, American "would continue operations more or less as normal while restructuring its debt and labor agreements," Winship said.

George Hobica, founder of travel website Airfarewatchdog.com, agreed that Chapter 11 should have little impact on frequent flier miles accrued. "Miles would be protected, since they’d keep flying," Hobica said.

Still, not everyone is as optimistic.

"People have a tendency to think of frequent flier miles as money in the bank, but it’s not like that at all," said Edward Hasbrouck, author of The Practical Nomad travel books and a policy analyst with the Consumer Travel Alliance.

Hasbrouck said American has no contractual obligations to the frequent flier mileage holder and it could change or eliminate its frequent flier program at any time - bankruptcy or not.

"If they’re in bankruptcy, the decision of whether to do so will not be made with any consideration of the interest of the frequent flier holders," he added.

Hasbrouck advises customers with miles to "use them up now" if they have the chance.

Still, at least one frequent flier isn’t ready to redeem his nest egg of nearly 1 million miles.

"I’m not worried about my stash in the slightest," said Gary Leff, co-founder of Milepoint.com, a frequent flier community, who is a lifetime Platinum AAdvantage member.

Leff said the AAdvantage program is likely profitable on a stand-alone basis and could survive as a separate entity in the unlikely event of the airline’s liquidation.

In 2010, American generated an estimated $1.37 billion in annual revenue from its frequent flier program, according to a recent report from Wisconsin-based IdeaWorks, which analyzes frequent flier and other loyalty programs.

Most of the revenue comes from frequent flier miles purchased by individual members, other airlines and program partners, including banks, the report noted.

Experts say that if the airline were to cease flying, the frequent flier program would likely continue in one form or another.

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Posted in American Airlines Bankruptcy , AMR Bankruptcy , Chapter 11 Bankruptcy

Friendly's Files Bankruptcy & Closes 63 Stores

Friendly's Restaurant, a 400+ restaurant chain filed for Chapter 11 bankruptcy protection on Wednesday at The United States Bankruptcy Court for the District of Delaware.

As a result of the restaurant bankruptcy filing - Friendly's closed 63 stores, each of which employed about 20 people, so about 1,260 jobs were lost.

 

The 76-year-old company known for its ice cream and hamburgers is the latest restaurant chain to file forbankruptcy, as consumers continue to eat out less, a habit they picked up during the recession, and food costs remain high.

"The strategic decision to pursue a financial restructuring will allow us to proactively and quickly improve our financial position," said CEO Harsha V. Agadi.

Friendly Ice Cream Corp., based in Wilbraham, Mass., says it has secured $70 million in financing and that its 424 remaining restaurants will stay open and pay employee salaries and benefits as it reorganizes underbankruptcy protection. Gift cards will continue to be honored. Friendly's now employs about 9,000 workers.

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Posted in Chapter 11 Bankruptcy , Friendly's Bankruptcy , Restaurant Bankruptcy , United States Bankruptcy Courts

Foster Law Introduces a NEW Commercial

Foster Law Offices is pleased to share our NEW Commercial with you! Watch WJET-TV to see the commercial live. We hope you enjoy it!

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Posted in Debt Commercial , Foster Law Offices