Worlds Most Valuable Poster Sold in Bankruptcy Court

What is thought to be the world's most valuable movie poster along with eight others sold to a film memorabilia collector for $1.2 million.

The Metropolis poster by German Expressionist Heinz Schulz-Neudamm was purchased as part of a lot in a Los Angeles bankruptcy court Thursday.

Schulz-Neudamm created the poster in 1927 for the German Expressionist science-fiction film of the same title by Fritz Lang.

New Jersey resident Ralph DeLuca, who owns film memorabilia company Movie Archives Inc., won the bidding over three other bidders, Reuters reports. Bidding for the poster started at $700,000.

"I honestly feel that the 'Metropolis' poster is worth more than the whole lot," DeLuca told Reuters. A collector bought the futuristic poster for a record $690,000 back in 2005, which had been a record. Some speculated when it was filed with the bankruptcy court last summer that it could fetch as much as $1 million.

"I think I'll keep the poster unless I get overwhelmed with a 'Guinness Book of Records' offer," said DeLuca. "I believe it will be the first to go past $1 million and even hit $2 million."

Schulz-Neudamm's painting of the artificial woman, or the Robot, is used by a mad scientist to seduce an race of workers in a totalitarian futuristic urban city. Made in Germany during the Weimar Period, Metropolis is set in the year 2026 in a dystopian society in which a wealthy elite rules from vast tower complexes, oppressing the workers who live in the depths below. The silent film was written by Lang and his wife Thea Von Harbou, and starred Brigitte Helm, Gustav Fröhlich, Alfred Abel and Rudolf Klein-Rogge.

In 2008, a print of Lang's original cut of the film was found in Argentina.
[Source: Reuters]

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Posted in Bankruptcy Auction , Bankruptcy Memorabilia , Metropolis Poster Bankruptcy Auction , Movie Archives

Federal Judge Allows Popular PA Ski Resort to be Sold at Auction

Scranton, PA -  A federal bankruptcy judge had the final say, allowing bankruptcy trustee Gary Seitz to solict bids for the purchase of Northwestern Pennsylvania'a Sno Mountain to satisfy its creditors.

The Ski Resort's finances were a slippery slope themselves, as the resort has accumulated over $24 million dollars in debt and nearly $420,000 in tax liens. The list continues with over $400,000 due to the IRS and a bill more than double that size owed to the Commonwealth of Pennsylvania.

The resort filed for Chapter 11 bankruptcy protection in October, and court records list the resort with assets of only $171,562.00.

The sale is expecetd  to be completed no later than April 8. In the event there are no buyers, the resort’s largest secured creditor, DFM Realty, will be allowed to execute on its debt.

Snö Mountain is still scheduled to open for the winter season on or about Dec. 20, resort officials indicate, and the judge's order permits the resort to use its cash fund its operations this winter, including paying 13 full-time employees and renewing its insurance policy that expires this month.

Read more...

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Posted in business bankruptcy , Chapter 11 Bankruptcy , pennsylvania bankruptcy , ski resort bankruptcy , sno mountain bankruptcy

Bankruptcy Trial for Former Telatron Owners Getting Closer

According to GoErie, The former owners of a bankrupt Erie telemarketing business are getting closer to a trial in U.S. Bankruptcy Court in Erie over claims that they engaged in a multimillion-dollar fraud while they ran the company.

Chief U.S. Bankruptcy Judge Thomas P. Agresti last week rejected a proposed settlement that would have ended the case against the two top officials of what had been the Telatron Marketing Group Inc.

Agresti, who cited a clerical error in turning down the proposal, has scheduled a trial for Dec. 13-14 at the federal courthouse in Erie.
Some of the claims against Telatron are related to an affiliate debt-collection business, Unicredit America Inc., which ran a fake courtroom to intimidate debtors until an Erie County judge shut down that business in November 2010.

Telatron's parent company, Creditron Financial Corp., filed for bankruptcy in 2008. The bankruptcy trustee for Telatron is pursuing the fraud claims against Telatron's former owners and founders -- Alfred D. Covatto, 73, who had been the company's chief executive, and his wife, Joyce M. Covatto, 61, who had been the company's president. They filed for personal bankruptcy in 2011.

The Covattos had also been the landlords for Telatron, in the 1500 block of West 38th Street, and Unicredit, in the 1500 block of West 39th Street. Unicredit's president was Michael J. Covatto, 51, Alfred Covatto's son and Joyce Covatto's stepson. He filed for bankruptcy in 2011.

The trustee in the Telatron case is Erie lawyer John Melaragno. He is in charge of trying to get money for the creditors of Telatron, which listed debts of $4.8 million in its bankruptcy filing. That included $2.4 million in unpaid federal taxes.

Melaragno is claiming Alfred and Joyce Covatto are liable for as much as $4.1 million related to fraud. He is alleging Telatron and the Covattos got the money through improper financial transactions during the bankruptcy.

Melaragno, according to court records, is claiming that Telatron paid the Covattos excessive rent of $852,089; that another Telatron affiliate, the Academic Lending Center, collected $2.5 million that Telatron should have received; that Telatron, through a corporate credit card, paid the Covattos' personal expenses of $62,133; and that Telatron improperly paid $727,082 for wages and benefits for 19 Unicredit employees from February 2008 to February 2010.

The Covattos are arguing that the claims are groundless, and that Telatron owes them unpaid rent of $342,000. The Covattos have demanded a jury trial, though the case could go to a nonjury trial. Jury trials are so rare in U.S. Bankruptcy Court in Erie that Agresti's courtroom has no jury box.

The settlement would have ended Melaragno's claims for $410,000. Melaragno had agreed to set aside $135,000 of that amount to cover the claims of unpaid rent to the Covattos, leaving the couple to pay $275,000 to Melaragno, who would distribute the money to Telatron's creditors.

If the case goes to trial, the claims would amount to $1.6 million rather than the full $4.1 million. That is because Agresti on Tuesday entered a default judgment of $2.5 million against the Academic Learning Center.

Melaragno is arguing that the Covattos are responsible for the judgment, which, according to court records, is connected to another Telatron-related company, Teletron Marketing Group -- whose name differs from Telatron's by one letter. Teletron did not respond to Melaragno's claims over the $2.5 million, leading to the default judgment.

Based on the court filings, it's uncertain how much of the claims the Covattos would be able to pay if they lose at trial. The Covattos, who live on St. Mary Drive in Millcreek Township, are still working on a plan to pay creditors in their personal bankruptcy case, and "now face the loss of their residence to a pending foreclosure, have lost their business and lost their jobs," according to the proposed settlement.

The Telatron case has generated some money for creditors. A New York City company, Y & Y Holdings LLC, bought Telatron's assets for $600,000 in Bankruptcy Court in January, renamed the business Agility Marketing Inc. and moved it from Telatron's former offices to Millcreek.

The former offices of Telatron and Unicredit are for sale for $2.7 million.

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Posted in bankruoty filing , bankruptcy trial , Erie PA Bankruptcy , Judge Thomas Agresti , Telatron Bankruptcy , Trustee Melaragno , U.S. Bankruptcy Court

According to a recent article published by Go Erie, Erie's Community Country Day School have filed for Chapter 11 bankruptcy protection, citing hundreds of thousands of dollars in debt and unpaid taxes that accumulated as the school lost donations and grant funding.

Community Country Day School is a private school, founded in the late 1960's with an enrollment of approximately 140 students grades K-12. The school specializes in providing mental health services for students.

According to documents filed in U.S. Bankruptcy Court in Erie on November 9th, the school owes the IRS approximately $175,000 in back taxes and that is just the beginning....

• $600,000 owed to Northwest Savings Bank
• $60,679 in Pennsylvania unemployment compensation
• $41,455 to Awareness Ministries
• $30,000 to Community of Caring
• $28,000 to Pennsylvania Department of Revenue
• $27,623 to Pennsylvania Department of Education

Community Country Day School officials expect to be back in Chief U.S. Bankruptct Judge Thomas Agresti's courtroom on Dec. 20.

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Posted in Chapter 11 Bankruptcy , Erie Bankruptcy , Erie Bankruptcy Court , Erie Community Country Day School , Judge Thomas Agresti , U.S. Bankruptcy Court

Manhatten Federal Bankruptcy Court Will Re-Open

(Reuters) Federal bankruptcy court in Manhattan reopened  Yesterday after being closed for more than two weeks due to flooding and other damage caused by Hurricane Sandy, according to its website.

The court, which had been without steam, Internet and phone connection, is "now operational," according to an announcement on the site on Monday.

For large companies restructuring under Chapter 11 in New York, like Patriot Coal Corp and American Airlines parent AMR Corp, it means returning to normal after days of postponed or relocated court hearings.

The court, a major hub for corporate restructurings and liquidations, is located at One Bowling Green, near Manhattan's southernmost tip. The area suffered major flooding and power outages after Hurricane Sandy touched ground in the New York area on Oct. 28.

Visit Reuters for the complete story.

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Posted in AMR Corp Bankruptcy , Federal Bankruptcy Court , Hurricane Sandy , NYC Bankruptcy Court , Patriot Coal Corp

CSI Actor Files For Bankruptcy

A pending foreclosure, mounting credit card bebt... CSI Actor Gary Dourdan found himself in the headlines after he was sued over his credit card debt in 2010.

His financial troubles continued as Wells Fargo Bank wanted to place his California summer home up for auction this summer to help pay off his mortgage debts. In August 2012, Gary chose the path that so many other have turned to for a new financial start... bankruptcy.

In the court documents, obtained by TMZ, Dourdan claims he has just over $1.8 million in assets, but owes several creditors a total of $1.73 million, with the largest creditors being financial institutions.

Dourdan listed  a 2006 Dodge Charger worth $7,000, $4,000 in furniture, $1,500 in clothes, and $500 in watches as some of his posessions.

 

What does he make a month? Court documents state that he earns an average of $14,883 a month, but his bills leave him with just $321 in disposable income.

According to MSN's Wonderwall Dourdan, 45, "is predicting a more promising future and "anticipates major acting roles", which he hopes will help settle his debts".

The actor has not landed a significant film or TV job since his "CSI" analyst character Warrick Brown was killed off in the season nine premiere in 2008.

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Posted in Celebrity Bankruptcy , CSI Bankruptcy , Gary Dourdan , mortgage debt

Borders Gift Cards... Worth NOTHING.

If you are holding on to a Borders gift card...you can safely deposit it in the trash, as the paper is worth more than the balance on the card. Sad but true, a bankruptcy judge ruled that Borders does NOT owe a cent to the gift card holders who didn't redeem their cards before last year's deadline, when the mass retailer closed for good. 

Those who still have gift-cards from the retailer -- opposed the ruling, arguing that Borders "did nothing" to reach out to their gift-card holders before they shut down last September.

Judge Martin Glenn of the U.S. Bankruptcy Court said “Gift cards, as their name illustrates, are not intended to be used by the purchaser but are instead intended as gifts, so even if the debtors were able to identify the purchasers of the gift cards, they would have no way of tracing the ultimate recipients,” he wrote in his opinion. “And, in fact, the gift card holders, by their own admission, received their gift cards as gifts. Therefore, the debtors had no way of tracing their identities.”

Clint Krislov of Krislov & Associates in Chicago, who is representing the gift-card holders, expressed disappointment with the judge’s ruling, which he expects to appeal.

“We will pursue this further,” he told Bankruptcy Beat Wednesday.

More on Borders Bankruptcy & Gift Cards....

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Posted in bankruptcy beat , Borders Bankruptcy , borders gift cards , retail bankruptcy

Sapp Sells Shoes to Pay For Bankruptcy

 Bankruptcy lawyers except a variety of payments - but Warren's Sapps shoes aren't going to pay the bill. The ex-football star was hoping collectors or fans would be willing to shell out some cash for his collection of 215 pairs of size 15 shoes.

 

According to the Daily Mail, Sapp auctioned off his entire collection of Air Jordans on eBay to try to recoup money for creditors in his bankruptcy case. How did the Air Jordan Auction go? The plan to support Sapp's bankruptcy was a bust -- The highest bid was $16,800 - which didn't meet the auction's reserve.

The sale wasn’t exactly a success, though—the highest bid of $16,800 didn’t meet the auction’s reserve for the collection. 

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Posted in ex football bankruptcy , warren sapp bankruptcy

Daughter Wins Gold, Mom Files Bankruptcy

It was 2 gold medals that made one U.S. gymnast a celebrity overnight. Gabby Douglas made international headlines upon capturing the second gold and the hearts of many. The American sweetheart, tumbled her way to the top of the podium twice during the 2012 Olympic Games, but the gymnast’s mother isn’t quite as fortunate.

Reports show Natalie Hawkins filed for Chapter 13 bankruptcy in January with nearly $80,000 in debt. According to the Associated Press, Hawkins said the bankruptcy was her story and she wasn’t embarrassed about it. “It shows that even though I didn’t like to have to do it,” she said. “I’m glad there was something there for me to be able to protect my home.”

According to WSJ - Hawkins’s latest bankruptcy wasn’t her only one; a previous Chapter 13 case was dismissed last year for failure to make payments in a bankruptcy plan. Hawkins isn't alone. Many Olympians' parents struggle, noting that it extremely expensive to support their children's dreams.

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Posted in Celebrity Bankruptcy , Chapter 13 bankruptcy , gabby douglas , olympic bankruptcy

Michael Vick - Motivating Others After Bankruptcy

"It's not how you start, it's how you finish"... this is just one of the sayings printed on a shirt, part of Michael Vick's new clothing line - V7. Hard to believe 4 years ago, Vick filed for Chapter 11 bankruptcy and just 3 short years ago, Vick was serving an 18 month sentence for funding a dog fighting ring.

From digging out of debt to doing time, Vick is now listed one of Forbes Top Highest Paid Athletes, like a phoenix he has risen from the ashes and hopes his clothing line can aspire others who may be facing tough times to see the light at the end of the tunnel...

http://www.forbes.com/sites/lancemadden/2012/07/17/what-bankruptcy-michael-vick-launches-new-clothing-line/

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Posted in Chapter 11 Bankruptcy , Michael Vick bankruptcy , V7 Clothing Line

Weird Iowa Bankruptcy News.... Week of July 16th

This month there are several interesting bankruptcy heading from Iowa that will leave you shaking your heads from bankrupt monks to spongebob coins and everything in between... Here's the bizzare bankruptcy buzz from Iowa this week....

A cedar rapids based self proclaimed "monk" files a personal bankruptcy petition in December in Iowa, but since then Ryan St. Anne Scott has "essentially done nothing" federal officials require....
Read More: http://wcfcourier.com/news/local/judge-closes-the-book-on-monk-s-bankruptcy-case/article_1a5816c9-e6db-5389-ae20-5e836074986b.html#ixzz2164wADPX

In other news....

Peregrine Financial Group, Cedar-IA based firm is in hot water this week after the FBI seized some very interesting valuables from the firms' vault at their headquarters... What was so valuable you ask ?? The answer may surprise you... Silver Spongebob Square Pants coins minted by a private New Zealand company.

According to Reuters -- "Ira Bodenstein, the trustee in Peregrine's bankruptcy case in Chicago, said the coins were in a vault at the firm's Cedar Falls, Iowa, headquarters. The value of the takings was not immediately clear".

"The coin disclosure adds a new twist to the case of Peregrine Finiancial Group's CEO Russell Wasendorf Sr., who was arrested last Friday after he confessed to doctoring bank statements to make regulators think his futures brokerage had nearly twice the assets that it did, leaving customers with an estimated shortfall of over $200 million".

That's your bankruptcy buzz from Iowa...

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Posted in bankruptcy news , iowa bankruptcy news , peregrine financial group

Ready, Set, Action! ... WJET-TV Commercial Shoot

 

 Ready, Set, Action! Step into the studio (...or should we say, behind the camera) with Foster Law Offices for their latest commercial shoot at the WJET-TV studios in Erie, PA. With tax season over, summer is in full swing and the team at Foster Law Offices are committed as ever with helping folks find relief under the U.S. Bankruptcy Code.

Debt Relief is a serious and personal business and every day we work hard to help our clients sleep better at night and get the relief they desperately need. With thousands of hours spent in the office and in courtroom it is a breath of fresh air to step outside "the box" and into the studio. Interested in seeing more of the shoot? Like us on Facebook - www.facebook.com/PABankruptcy for more photos.

... and stay tuned, we will post our 2 new commercials shortly!

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Posted in Bankruptcy Commercial , Bankruptcy Legal Services , Foster Law Offices

Happy 4th of July

Happy Fourth of July from all of the staff at Foster Law Offices.

"America was not built on fear. America was built on courage, on imagination and an unbeatable determination to do the job at hand."

Author: H.S. Truman

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Posted in Fourth of July

Top Celebrity Bankruptcies

Found an awesome article from Howtosavemoney.com that details the top celebrities who filed bankruptcy... When people come into our office and say they are embarrased or we hear people who are financially struggling say, "I need help but i'm too good to file bankruptcy"... we tell them that we are here to help. There is help. We help people get a fresh start, one that has afforded millionaires the opportunity to find their success... innovators to make their mark on the world and ordinary people to find peace and get a fresh start. Check out this fun read... ___________________________________________________________
Willie Nelson

Willie Nelson is one of Country Music’s living legends with over 50 million records sold but even with all those gold records he was no stranger to debt. Well known as a big spender with a generous heart, and an entourage somewhat like MC Hammer’s Willie Nelson’s finances caught up to him in the late 90′s. In 1997, the government seized Nelson’s gold records, Texas ranch and bank accounts to pay off about $16.7 million in back taxes. In true American fashion however Willie Nelson did a Taco Bell spokesperson side job and released a new album in honor of the IRS, titled “The IRS Tapes: Who Will Buy My Memories?” to raise funds and settle his debts.

Marvin Gaye

The hit singer of “I heard it Through the Grapevine” filed for bankruptcy in the 70’s after paying the divorce settlement for his first wife of 14 years, Anna Gordy. He continued to struggle, having tax and drug problems, and moved to Europe to avoid the Internal Revenue Service. However bankruptcy never stopped Marvin Gaye from coming back and in the 1980′s released some of the most well-known songs in history including the Grammy winning “Sexual Healing”. In 1984 however Marvin Gaye’s life was cut short dying at the age 45. Three years later Marvin Gaye was induced into the Rock and Roll of Fame.

Mc Hammer

Who can forget the baggy pants and dance moves which would make most people keel over in 30 seconds. The 90′s were full of glitz and gold and few can forget the famous Hammertime song by M.C. Hammer. However along with outrageous parachute pants and dance moves M.C. Hammer’s rise to fame came with a crushing blow to his personal finances. Racking up some of the biggest musical hits at the time he also had an entourage (and payroll) to match. M.C. Hammer reportedly paid over $500,000 a month to a staff of 300 people and in 1996, had accumulated $13.7 million of debt with only $9.6 million in assets. He filed for bankruptcy with debts that included $500,000 in attorney fees, $110,000 to his decorator and $100,000 to the IRS.
Meatloaf

Meatloaf has sold over 70 million records with his “Bat out of Hell” album charted for over nine years, making it one of the biggest selling albums of all time and on the VH1 list of 100 Greatest Artists of Hard Rock. He fired his managers in 1981 after finding they were stealing money from him, and the managers retaliated by having Meatloaf’s assets frozen and suing him for breach of contract. Additionally, they spread all kinds of rumors about Meatloaf behaving violently and waving guns at people. Meatloaf finally gave up and filed bankruptcy, with $1.6 million of debts. Things started to look up when he found a new producer and recorded an album in 1986, but the album tracks all had a dance beat which didn’t pan out for Meatloaf, and he was forced to file bankruptcy again. However bankruptcy never stopped Meatloaf and today he enjoys a solid following and continues to tour to sold out crowds across the world. Meatloaf has even enjoyed many TV and Movie roles over the past decade and recently was a cast member on “The Celebrity Apprentice”.

Toni Braxton

Toni Braxton, a grammy-winning R&B singer known for her sexy, sultry voice and hit songs such as “You’re Makin’ Me High” and “Un-Break My Heart” attempted to get out of her recording contract with LaFace Records in 1998 as she felt it was no longer fair. She filed a lawsuit however LaFace turned around and counter-sued her, forcing Braxton to file bankruptcy and spend most of 1998 dealing with legal issues. Braxton was diagnosed with Lupus in 2009, and has been dealing with ongoing health issues since then. Braxton filed bankruptcy for the second time in 2010, claiming to owe up to $50 million, with a net worth of only $1 million to $10 million.

Cyndi Lauper

The “Girls Just Wanna Have Fun” hit singer has had an extremely successful recording career, including her “True Colors” album, which charted at number one. However Cyndi’s beginning was not quite as successful, with a first album release together with her original band, Blue Angels. The album was a flop, and to top it off her manger sued the Blue Angels for $80,000, forcing Lauper to file bankruptcy in 1980. Cyndi Lauper’s Estimated Net Worth Today – $6 Million

Tom Petty

Tom Petty’s first albums were a smashing success with his band the Heartbreakers, although his bank account did not grow along with his fame. Record companies are infamous for restrictive recording contracts with conditions that keep even top selling artists in the poor house. When Tom Petty’s label, Shelter Records, was sold to MCA he jumped on the opportunity to declare himself a free agent. When MCA balked, Petty paid $500,000 out of his own pocket to record his next album and held it back as a bargaining chip against MCA. In 1979, he finally declared bankruptcy to gain more leverage in the legal dispute to get out his unfavorable recording contract. MCA ultimately gave in, allowing Petty out of his original contract and signing a new $3 million contract with him. His new album, “Damn the Torpedoes” was finally released featuring “Don’t Do Me Like That” and “Refugee”, went certified double platinum, and made Tom Petty and the Heartbreakers into true rock and roll superstars.

Natalie Cole

After many successful years as a recording artist, Natalie Cole (the daughter of recording legend Nat King Cole) had a career pause and problems with drug addiction in the early 80’s. By 1985 she was doing much better, but still filed for bankruptcy protection in 1997. Her career picked up again in the late 90’s, and she won the “Hitmaker Award” for the Songwriter’s Hall of Fame in 1999 . Natalie was diagnosed with Hepatitis C in 2008 and had a life saving kidney transplant but continues to record and inspire people around the world today.

Mike Tyson

Retired former heavyweight boxing champion Mike Tyson won the WBC title as a 20 year old and quickly became one of the most famous athletes in the world. He went on to have a very successful boxing career, becoming known for his ferocious style in the ring and controversial behavior outside of the ring. Although Tyson received over $30 million for several fights and a career income estimated at $300 million, he filed bankruptcy in 2003. He had a very difficult and public divorce from ex-wife Robin Givens blaming his financial situation on excessive spending on mansions and expensive cars. Tyson also blamed bad financial advisors and embezzlement as other causes for his bankruptcy. Mike Tyson’s Estimated Net Worth today is under $5 million.

Walt Disney

Walt Disney started a company named Laugh-O-Gram in 1920 to produce his first animated fairy tales. Disney started assembling his team of animators, and legend says that the office space was infested with mice, including one mouse that had a lot of personality and received a special nickname of– Mickey. His New York-based financial backers ended up going broke, and Disney could no longer cover his payroll or his debts. The company filed for bankruptcy protection, and Disney scraped together the funds to take a bus to Hollywood. Once he arrived, he put his own name on a new production company, and invented his newest animated character. The Walt Disney Co. today is one of the largest companies in the world with a market value of almost $80 Billion!

Marion Jones

Marion Jones, an Olympic sprinter with 5 medals and endorsement deals worth millions of dollars has been fighting off financial troubles for some time now. After numerous anti-doping and other agencies made allegations against her regarding steroid use, Jones missed many meets and spent substantial amounts of money on attorneys to fight the allegations. Jones also admits her own spending habits to maintain a certain “lifestyle” have forced her deep into debt. Jones has had to sell off some real estate assets, including a $2.5 million mansion she lost to foreclosure, to settle some of her debts and try to avoid bankruptcy.

Kim Basinger

In 1993, Oscar-winning actress Kim Basinger was ordered to pay over $8 million to Main Line Pictures, after she was sued for breach of contract. She was charged with backing out of a verbal agreement to star in the film “Boxing Helena.” Basinger filed bankruptcy, and the court’s decision was later reversed during an appeal.

Ed McMahon

Apparently, the real estate foreclosure crisis affected celebrities too. The legendary Johnny Carson sidekick Ed McMahon, recently deceased, had to file bankruptcy when he came up short $644,000 on the payments for his $4.8 million home loan, and the lender filed a default notice on McMahon’s Beverly Hills mansion.

Gary Coleman

Gary Coleman, former child star of the sitcom “Diff’rent Strokes” suffered financial problems due to lifelong kidney issues and poor money management. He also had to pay a settlement due to a 1993 lawsuit. The star had earned $70,000 for each episode of the show, but in 1999 had to file for bankruptcy. In 2009, he was still struggling financially, with $72,000 of debts and an accusation that the parents who adopted him had robbed his estate of approximately $1 million.

Abe Lincoln

Abe Lincoln was the nation’s 16th President. He was forced into bankruptcy in 1833, due to a poorly performing retail business and back payments of debt. Lincoln lost his last two assets, his home and some surveying equipment, and spent 17 years paying back the rest of the money to all the friends who had lent him funds to start his business.

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Posted in Celebrity Bankruptcy , ford bankruptcy , walt disney bankruptcy

How Does Chapter 7 Work?

Now we are getting to the "meat and potatoes" of the topic... How does Chapter 7 work? According to the US Courts website, here is the first step... A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. (3) In addition to the petition, the debtor must also file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a statement of financial affairs; and (4) a schedule of executory contracts and unexpired leases. Fed. R. Bankr. P. 1007(b). Debtors must also provide the assigned case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case (including tax returns for prior years that had not been filed when the case began). 11 U.S.C. § 521. Individual debtors with primarily consumer debts have additional document filing requirements. They must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts. Id. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302(a). Even if filing jointly, a husband and wife are subject to all the document filing requirements of individual debtors. (The Official Forms may be purchased at legal stationery stores or downloaded from the internet at www.uscourts.gov/bkforms/index.html. They are not available from the court.) If this seems intense - there is good news, if you hire a licensed bankrupcty attorney, such as Foster Law Offices - they will take care of the filing for you. The first step would be to schedule a free consultation where Attorney Foster of Attorney Cook will meet with you to learn more about your unique financial situation and to determine the appropriate action plan to get you the debt relief you seek. The next step is ensuring all fees are paid and on time... Again if you hire a firm to assist you with filing, they will explain this part of the process to you in detail. Moving along -- According to the US Courts website, there are quite a few additional steps neccesary to complete the official bankruptcy forms,statement of financial affairs, and schedules, the debtor must provide the following information: A list of all creditors and the amount and nature of their claims; The source, amount, and frequency of the debtor's income; A list of all of the debtor's property; and A detailed list of the debtor's monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc. Married individuals must gather this information for their spouse regardless of whether they are filing a joint petition, separate individual petitions, or even if only one spouse is filing. In a situation where only one spouse files, the income and expenses of the non-filing spouse are required so that the court, the trustee and creditors can evaluate the household's financial position. Among the schedules that an individual debtor will file is a schedule of "exempt" property. The Bankruptcy Code allows an individual debtor (4) to protect some property from the claims of creditors because it is exempt under federal bankruptcy law or under the laws of the debtor's home state. 11 U.S.C. § 522(b). Many states have taken advantage of a provision in the Bankruptcy Code that permits each state to adopt its own exemption law in place of the federal exemptions. In other jurisdictions, the individual debtor has the option of choosing between a federal package of exemptions or the exemptions available under state law. Thus, whether certain property is exempt and may be kept by the debtor is often a question of state law. The debtor should consult an attorney to determine the exemptions available in the state where the debtor lives. This is the point, where I take a deep breath and am glad I work in our marketing department -- the attorneys and paralegals prepare quite a bit of paperwork to assist each of their clients with seeking protection under Chapter 7 of the Bankruptcy Code. Fastforward -- The US Courts site reports, Between 21 and 40 days after the petition is filed, the case trustee will hold a meeting of creditors. During this meeting, the trustee puts the debtor under oath, and both the trustee and creditors may ask questions. The debtor must attend the meeting and answer questions regarding the debtor's financial affairs and property. Within 10 days of the creditors' meeting, the U.S. trustee will report to the court whether the case should be presumed to be an abuse under the means test described in 11 U.S.C. § 704(b). It is important for the debtor to cooperate with the trustee and to provide any financial records or documents that the trustee requests. The Bankruptcy Code requires the trustee to ask the debtor questions at the meeting of creditors to ensure that the debtor is aware of the potential consequences of seeking a discharge in bankruptcy such as the effect on credit history, the ability to file a petition under a different chapter, the effect of receiving a discharge, and the effect of reaffirming a debt. Some trustees provide written information on these topics at or before the meeting to ensure that the debtor is aware of this information. In order to preserve their independent judgment, bankruptcy judges are prohibited from attending the meeting of creditors. 11 U.S.C. § 341(c). Whew this was a long topic... time to move along to some lighter entries and focus on some bankruptcy myths, after all - they don't call Attorney Foster "mr debtbuster" for nothing...

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Posted in bankruptcy court , Chapter 7 Bankruptcy , The Federal Bankruptcy Code

Qualifying for Relief Under Chapter 7 of Bankruptcy Code

Happy June 2nd... Let's continue with learning about Chapter 7 of the Bankruptcy Code. The topic of the day... Who is eligible to file for Chapter 7 ? According to the US Courts website... you can be an individual, a partnership, or a corporation or other business entity. 11 U.S.C. §§ 101(41), 109(b). So who is not eligible ? An individual cannot file under chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e). In addition, no individual may be a debtor under chapter 7 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court. This definition of eligibility is definitely written in "lawyer-speak"... so as part of Foster Law Office's Marketing Department, let's break it down... One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a "fresh start." Discharge is just a fancy word for "getting rid of"... So most individuals file for Chapter 7 bankruptcy to "get rid of" debt. Once, a debt has been "discharged" the individual is no longer liable. BUT (here is the other side)the right to discharge is NOT guaranteed - some debts are not discharged and this will not extinguish a lien on property. This topic is a complex one for sure. It is always best to consult with a licensed bankruptcy attorney as each asset, individual and situation is different. The process is quite complex and deadlines are crucial. Next topic we will tackle - how does filing for Chapter 7 work?? If you are considering filing for protection under Chapter 7 of the US Bankruptcy Code - contact Foster Law Offices to schedule a free consultation.

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Posted in Chapter 7 Bankruptcy Eligibility , Foster Law Offices

What is Chapter 7 Bankruptcy

It's June! Only 19 more days until it is officially summer AND we are kicking off our "Learn about Bankruptcy Month"... we are excited to provide you with some educational information, hopefully you are excited to learn a bit more about bankruptcy. Today's Topic - What is a Chapter 7 Bankruptcy? While the answer may vary depending on who you ask... we are going to take the safe road and give you the explanation provided to consumers on the website by the United States Court System, a site that is designed to provide you with information about the judicial branch of the US Government, click here to check it out. - A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. - Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets ( You can call a licensed bankruptcy attorney such as Foster Law Offices to assist you with determining which of your assets would be classified as non exempt)and uses the proceeds of such assets to pay creditors in accordance with the provisions of the Bankruptcy Code. - In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. This is the most basic definition of a Chapter 7 Bankruptcy, if you are looking for additional information you can visit our Chapter 7 Bankruptcy Page or click here to learn the differences between Chapter 7 and Chapter 13 bankruptcy protection.

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Posted in Chapter 11 Bankruptcy , Chapter 13 bankruptcy , Chapter 7 Bankruptcy , Foster Law Offices

June: Learn About Bankruptcy

We are declaring June,"Learn About Bankruptcy Month"... Check back every day as we will tackle a new topic daily. From Chapter 11 Bankruptcy to helpful forms and resources, we are here to make June a fun-filled month on our blog - with a focus on Bankruptcy. As always, it is important to mention that our blog is meant for entertainment and informational purposes only and is managed by the Marketing Department at Foster Law Offices, reading our blog does not constitute a lawyer-client relationship... Foster Law Offices, does, however offer a free initial consultation and with offices in Warren, Erie, Meadville and Franklin - we are only a short drive away. Give us a call and we will be glad to take a look at your unique financial situation... Bet you can hardly wait for tomorrow? Enjoy!

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RG Steel Files for Bankruptcy Protection

ASSOCIATED PRESS --

DOVER, Del. (AP) — Struggling Maryland-based steelmaker RG Steel has filed for Chapter 11 bankruptcy protection in Delaware. In its filing Thursday, the company listed more than $1 billion in both assets and liabilities. RG Steel, based in Sparrows Point, Md., said last week that it planned to idle operations in Maryland, Ohio and West Virginia and warned employees that they faced layoffs. Maryland officials said nearly 2,000 workers would be laid off in the state. RG Steel was formed in March of last year as a wholly owned subsidiary of The Renco Group, a family-owned, private holding company founded in 1975. Renco says its businesses employ 18,000 people in eight different companies operating in North and South America, eastern and western Europe, Asia and Africa. Print

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Posted in Chapter 11 Bankruptcy , maryland bankruptcy , RG Bankruptcy , steelmaker bamkruptcy

Remember the "cantaloupe scare" last year ?? If not, let me refresh your memory... a Colorado farm was traced to a listeria outbreak in cantaloupe, one that was blamed for 32 deaths. In fact, the outbreak infected 146 people in over 28 states. According to Federal investigators old equipment and dirty, still pools of water were most likely to blame. Well, the Colorado Farm - Jensen Farms has filed for Chapter 11 Bankruptcy protection according to a report released by the Associated Press. Their article states, "Jensen Farms declined to comment on its filing Friday. Its attorney Jim Markus told The Denver Post ( http://bit.ly/KTUDbK ) the filing should free up millions of dollars in insurance and other funds that could be distributed to victims." Furthermore, "Court documents show the farm had $4.8 million in revenue in the past 12 months. It lists $2.1 million in assets, $2.5 million in liabilities, and $1.6 million in payments outstanding from food distributor Frontera Produce" according to AP Reports. Looking to learn more about Chapter 11 Bankruptcy, visit Foster Law Offices online.

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Posted in Chapter 11 Bankruptcy , Jensen Farms bankruptcy

Blair Witch Producer Files Bankruptcy

Kevin J. Foxe, producer of The Blair Witch Project filed bankruptcy last month, stating he only has $900 to his name. This filing came as a shocker to many as The Blair Witch Project went on to make $248 million dollars and only cost $25,000 to produce. What went wrong?? That is a question you would have to ask Foxe himself, and when TMZ contacted Foxe for comment, he declined. What we do know is Foxe filed for Chapter 7 bankruptcy protection in a California court citing a laundry list of creditors which add up to more than $130,000 with the IRS being the largest debt - as Foxe owes more than $62,000 in unpaid taxes. Blair Witch and Octomom - back to back, quite a spring for celebrity bankruptcy...

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Posted in Blair witch project bankruptcy , Chapter 7 Bankruptcy , foxe bankruptcy , kevin foxe bankruptcy

Octomom Files Bankruptcy

Octomom files bankruptcy! So, some of you may have seen this one coming... but what most of you didn't see coming was the amount of debt she racked up... how much, you ask?

Nadya Suleman also known as the "Octomom" has filed for bankruptcy, stating $962,000 in debt!

Thats right - almost a million bucks!


In an interview with the Orange County Register - the Octomom said "I have had to make some very difficult decisions this year, and filing Chapter 7 was one of them."

Suleman hopes that bankruptcy will give her family a much needed fresh start - currently she owed more than 20 times her net worth!


Suleman is filing Chapter 7 bankruptcy, which means a court-appointed trustee would liquidate her assets to pay off creditors before she is discharged from most of her debts.

Who does Suleman owe money to ? The list includes her father, the water department, a private school and DirecTV..... aSuleman also owes more than $30,000 in rent payments on her four-bedroom house.
While her debt continues to accrue, the single mother of 14 supports her children with the aid of food stamps and Social Security disability payments, she is unemployed.

Suleman's children were conceived through in vitro fertility treatments and her octuplets are the world's longest-surviving set.

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Posted in Celebrity Bankruptcy , chapter 7 , Chapter 7 Bankruptcy , octomom bankruptcy

Saint Catherine Medical Center Files for Bankruptcy

A Pennsylvania medical center filed an emergency petition for Chapter 11 bankruptcy protection on Monday according to national reports.

Saint Catherine Medical Center in Ashland, Pennsylvania filed for emergency protection following some serious issues facing the medical facility regarding serious deficiencies and safety violations putting patient health according to the Department of Health.

After the PA Department of Health uncovered these issues following an "un-announced" visit to the facilities an immediate ban on new admissions and a possible termination of their medicare agreement was placed on the facility.

The medical facility hired a local pennsylvania law firm to file the Chapter 11 bankruptcy protection petition and since the filing was of an emergency nature the list of creditors was not immediately available.

For more information on this story... visit Media Health Leaders.

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Posted in Chapter 11 Bankruptcy , chapter 11 bankruptcy protection , emergency bankruptcy protection , medical bankruptcy , PA department of health , saint catherine medical center

Is The Media to Blame for "Pink Slime" Bankruptcy?

You may be asking yourself, "what?!?"... There seems to be alot of crazy bankruptcy news making headines these days and an April 4th blog entry published by Lilly Broadcasting  talking the topic of one company who filed bankrupcty citing the media coverage of "pink slime" is no exception.

"Pink Slime" is a slang term wideley by the media to define "lean, finely textured ground beef". Two words that, let's face it don't make the thought of biting into a burger a picturesque one for most...  The ongoing media attention surrounding "pink slime" and the wholesomeness of the lean, ground beef we are consuming these days has "dramatically decreased the demand for all ground beef products" - according to AFA's interim CEO, Ron Allan.

AFA was the first company to express publicly the damage that the controversial media coverage of "pink slime" has had on their business. The King of Prussia, PA based ground beef processor filed for bankruptcy protection citing the media coverage of pink slime as the cause.

What effect will this "pink slime" controversy have on us,  the consumer? Expect the price of ground beef to raise and the price of hot dogs to decrease as there is ovewhelming supply of "pink slime" available to service the hot dog industry - while experts predict that schools, grocery stores and consumers alike are going to be checking the labels of ground beef to make sure that "pink slime" isn't on the menu and for ground beef processor's there is nothing pretty about that.

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Posted in afa bankruptcy , bankruptcy , ground beef bankruptcy , pink slime , pink slime bankruptcy

What!?! Saving Money Means Setting Prisoners Free...

This is my what?!? blog entry of the week, ok maybe the month... I could barely believe the headlines myself.

"Bankruptcy Jailbreak in California"...

California Governor Jerry Brown is being faced to make some tough decisions amidst a budget crunch and pressure from the courts... his most recent decision has some people left shaking their heads, and asking what?!?  The governor is "re-aligning" the prisoner population, in other words - he is shifting inmates classified as low level offenders to serve their time at the county jail instead of the state prison. The re-alignment  has reduced the state prison population by 15 percent since last October!

So, you are thinking ok... facing debt means making tough decisions...

The problem is, many of California's county jails are already filled to capacity, and are having to release inmates well before their sentences have been served. This hot topic has passionate supporters and opponents on both side of the issue and no matter what side of the issue you are on... this sure is an "outside of the box" approach to tacking a debt-ridden budget in a State that has been in financial crisis for some time.

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Posted in bankruptcy , California Bankruptcy

Free Financial Fitness For Erie Federal Credit Union Members

Erie Federal Credit Union Members can help their finances get fit - for free! Erie Federal Credit Union recently introduced members to a new benefit called BALANCE,  a financial fitness program. Also referred to as BalanceTrack, members can explore all elements of personal fitness online including links to learning modules and helpful resources to keep your finances fit!

The benefits also include free unbiased money management and certified financial couseling. For more invformation visit www.eriefcu.org or https://www.balancetrack.org.

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Posted in certified financial counseling , erie federal credit union , financial counseling , financial fitness , money management

US Consumer Agency to Be Active in Court Cases

According to initial reports from Reuters, The Consumer Financial Protection Bureau, a new agency formed in July 2011 is stepping up to the plate and heading to court to be active in cases involving disputes over consumer lending laws. 

The Bureau was formed to police markets for financial products including credit cards, loans and mortgages. It also works to educate consumers and investigates complaints from consumers regarding unfair or discriminatory lending practices.

The Consumer Finance Protection Bureau plans to attend court cases to give its' view on lending laws and says some courts have "misinterpreted the law".

According to the article first published by Reuters - "On Tuesday, the agency said it had filed a friend-of-the court brief in a truth in lending law case before the Denver-based U.S. 10th Circuit Court of Appeals.
"We are committed to making sure that borrowers can exercise their rights to the full extent allowed under this law," CFPB Director Richard Cordray said in a release.

The agency said it planned to file these types of amicus briefs whenever it feels its views can help a court.
"Amicus briefs are an important way for the CFPB to ensure that the statutes it oversees are correctly and consistently interpreted by the courts, even in cases in which the CFPB is not itself a named party," the bureau said in a release".

To read the entire article, click here. To visit the CFPB website, click here.

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Posted in CFPB , Consumer Financial Protection Bureau , lending laws , truth in lending

TaxMasters Files Bankruptcy

HOUSTON (AP) — TaxMasters Inc. has filed for bankruptcy protection following a legal challenge from Texas prosecutors who say the company's famed TV commercials mislead potential customers.
The Houston-based tax resolution company filed Chapter 11 reorganization documents in federal court on Sunday.
The filing says TaxMasters has assets of less than $50,000 and estimated liabilities of $1 million to $10 million.

Company founder and president Patrick Cox fronts the company's national advertising campaign.
KHOU-TV (http://bit.ly/zaIvyT ) says Texas is suing TaxMasters for violating the Texas Deceptive Trade Practices Act. It says TaxMaster commercials encourage people to call for a free consultation with a tax specialist but the calls are answered by salespeople unqualified to provide tax advice.
A TaxMasters spokesman and attorney did not immediately respond to calls for comment Monday.
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Online:
http://www.txmstr.com/
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Information from: KHOU-TV, http://www.khou.com

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Posted in business bankruptcy , Chapter 11 Bankruptcy , tax masters bankruptcy , texas bankruptcy

New Graduates Get a Degree and DEBT

Bankruptcy Attorneys' nationwide have dubbed the progressively worsening dilemma facing recent college graduates the "next debt bomb".

How bad is it? Accordingly a recent survey conducted by the National Association of Consumer Bankruptcy Attorneys - 81 percent of bankruptcy lawyers report that the number of prospective clients with student loan debt has increased "significantly" or "somewhat" in the past few years.

Here are some of the highlights of the survey: 

• Nearly two out of five bankruptcy attorneys (39 percent) have seen potential student loan client cases jump 25-50 percent in the last three to four years. About a quarter of bankruptcy attorneys (23 percent) have seen such cases jump by 50 percent to more than 100 percent.
• Most bankruptcy attorneys (95 percent) report that few student loan debtors are seen as having any chance of obtaining a discharge as a result of undue hardship.
• More than four out of five bankruptcy attorneys (82 percent) see the limited availability of student loan discharge in bankruptcy as "a big problem" barring a fresh start for clients.
• Nearly two out of three bankruptcy attorneys (65 percent) say that student loan provider debt collections have become "much more" or "somewhat more" aggressive in the last 18 months.

According to an article published by The New America, "Most of those clients, the association affirmed, were unable to meet the federal hardship criteria required to exempt their student loans through bankruptcy proceedings. Consequently, many loan co-signers, who are often parents or guardians, are required to cover the payments".


Student loan debt has boosted in recent years to a sum of $867 billion in 2011, which surpasses the $704 billion in outstanding U.S. credit card debt. 

Throughout the 2010-11 school year, students racked up $104 billion in loan debt from the Education Department — a 50-percent spike in three years — while private education loans dipped by 65 percent in that same period, to $7.9 billion.

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Posted in new graduate bankruptcy , student loan debt

Closing the Doors of Debt Ridden Churches...

(Reuters) - Banks are foreclosing on America's churches in record numbers as lenders increasingly lose patience with religious facilities that have defaulted on their mortgages, according to new data.

The surge in church foreclosures represents a new wave of distressed property seizures triggered by the 2008 financial crash, analysts say, with many banks no longer willing to grant struggling religious organizations forbearance.

Since 2010, 270 churches have been sold after defaulting on their loans, with 90 percent of those sales coming after a lender-triggered foreclosure, according to the real estate information company CoStar Group.

Read the entire article from Reuters as reported on March 9th, 2012.

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Posted in Church Bankruptcy , church foreclosure

Parent Company of Twinkies Names New CEO following Second Bankruptcy

According to a recent Reuters report, Hostess Brands - the maker of Twinkies and Wonder Bread has named a new CEO as they continue to work their way out of a second bankruptcy.
This is the second bankruptcy for Hostess Brands in less than three years.  Gregory Rayburn has taken over as CEO while former Chief Executive Officer, Brian Driscoll's resignation becomes effective today.

The company, which filed for bankruptcy protection in January 2012 after it failed to reach an agreement with workers regarding the issues of pension and healthcare is also facing a possible strike by the Teamsters union.

As the new head of the company, Gregory Rayburn will oversee the Hostess' reorganization under Chapter 11 and the ongoing negotiations with its unions.

To learn more about the different types of bankruptcy, visit Foster Law Offices.

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Posted in Chapter 11 Bankruptcy , gregory rayburn , hostess bankruptcy , twinkies bankruptcy

American Airlines Hopes Plea for More Time Flies

AMR - The parent company of American Airlines asked a federal bankruptcy judge to extend their "exclusitivity period" by six months.
An "exclusitivity period" is the period of time in which a company has the exclusive rights to file a reorganizational plan.  AMR filed for Chapter 11 Bankruptcy protection in November of 2011, and seeking an extension which would take their "exclusitiviety period" to September of 2012.

Reports indicated that was not a surprise and the announcenment came just one day after the Fort Worth, Texas-based company proposed to freeze pensions for many of its workers, retreating from a proposal to terminate them.

"The relief requested will allow American to continue focusing on preserving and enhancing going concern values and restructuring American's financial condition and operations," AMR said in a filing with the U.S. bankruptcy court in Manhattan.

A March 22 hearing on the request has been scheduled.

Follow Reuters for more information... 

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

Businessman Basics: Tips to Avoid Bankruptcy

One of the top search engine searches related to bankruptcy is regarding "entrepreneurship", especially new businesses. We have heard the statistics, most new businesses fail in the first 5 years. We have also heard that famous businessmen like Donald Trump have filed bankruptcy and like a phoenix, rose from the ashes to the top. Let's face it, most of us would like to experience success without dealing with extreme financial stress.... We have put together some tips for those of you looking to start a business or who may currently be entrepreneurs to keep your books "above water" and out of bankruptcy.

Failure to plan is a sure plan to fail.

This first tip may seam simple, but you would be surprised how many businesses and individuals alike do not have a financial plan or idea of the current state of their personal and/or business finances. Create a budget. A budget for you individually, a budget for your family, a budget for your business. Know what you have to spend, what you plan to spend and where you can cut if times get tough. Take advantage of free resources available online such as Mind Your Finances Money Management and Financial Tools.


I have a goal in mind.

Don't go in blind. Do your research and set business goals from the beginning to ensure that you maintain focus and have a realistic picture of the capital needed to start, grow and maintain the business. Define your goals in your marketing plan, business plan and five year forecast. This well help you to quickly say "no" to advertising/business opportunities that may sound good, but cost money and ultimately do not help you to meet your goals.

Time is money.

Take the time to do your research on money and finance with regards to establishing the type of business you are interested in. Constantly keep yourself updated with trends surrounding your industry, banking opportunities, rates, etc...

Avoid excessive usage of credit cards 

You know what they say, "cash is king" maybe not literally, but if you don't have the money - it is best to not charge it. Avoid excessive usage of credit cards and if you do use credit cards, make sure you will be able to pay them off in a timely fashion.

Receipt Please...

Keep track of ALL business transactions, always get a receipt. This will allow you to track your expenses, easily gather your write-offs to ensure the maximum return and also to know what expenditures you need to look at if you need to make "cuts" or if you have extra revenue.

If your business is in debt and you are not sure if bankruptcy is the right option for you, contact Foster Law Offices for a free, personalized consultation.

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Posted in businessman bankruptcy , entrepreneur bankruptcy , Foster Law Offices

Twinkies In Trouble? Hostess Files Bankruptcy...

No more twinkies? Say it isn't true. Hostess Brands, a Texas based company filed for Chapter 11 Bankruptcy protection on January 11, 2011 while continuing to operate but the signs of trouble continue to appear for the maker of Twinkies, Ho Hos and Wonder Bread..

The latest issue .. The Teamsters Union which represents approximately 1/2 of the company's  employees are threatening to strike if the company imposes what they deem as "unfair" contract terms, including wage cuts.

According to the Union,  more than 90 percent of its' Hostess members voted to authorize a strike if "unfair contract terms" are approved as part of the bankruptcy proceedings and  a hearing set for March 5th where a U.S. Bankruptcy judge will have 30 days to issue a ruling.

This isn't the first rodeo for the company comprised of 36 bakeries - Hostess previously filed for bankruptcy in 2004 and re-emerged in 2009. The company has about $860 million in debt.

A spokesman for Hostess declined to comment on the Teamsters’ announcement.

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Posted in Chapter 11 Bankruptcy , hostess bankruptcy , twinkies bankruptcy

Monthly Bankruptcy News Updates from Foster Law Offices

Interested in bankruptcy news? Considering bankruptcy, but not sure which bankruptcy lawyer may be best for you? Sign up for our monthly newsletter, once a month you will receive an email from Foster Law Offices highlighting bankruptcy news important to you and Northwestern Pennsylvania.

From fun stories to changes in legislature, tips and more... our monthly bankruptcy newsletter is meant to be an informational tool to help you learn more about bankruptcy.

Don't worry - we will NEVER sell your information, or send you spam and you can unsubscribe at ANY time... how cool is that? January's newsletter will be sent out later this week - so sign up now!  This month we will feature 3 cool tools to help you organize your finances BEFORE tax time and more!

Contact Foster Law Offices for a free consultation today!

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Posted in bankruptcy news , bankruptcy newsletter , Foster Law Offices

Robosigning Credit Cards: The Next Scandal

A friend forwarded me a brilliantly written blog post, that posed a very important question - Could the 'Robosigning' of credit cards be the next big bank scandal? Even bigger than the mortgage crisis?

You can read the entire article by clicking here... or here are some of the highlights, the cliff notes version, if you are short on time:

• Robosigning consists of blatantly illegal practices in which banks and mortgage companies had their employees sign affidavits and other documents without verifying the information therein; forge signatures on documents; backdate documents; falsely notarize documents; create new documents to replace missing ones; or some combination of all the above. Did I mention that all of this is illegal?

• The companies that did this claimed that they had to cut corners because they couldn’t keep up with all of the paperwork created by the housing boom last decade. But we now know that this is not true — there’s evidence that robo-signing goes back all the way to at least 1998.

• So in short the widespread and systematic robosigning of mortgage documents have created a real unresolved nightmare. And now there are indications that similar issues may exist within the credit card industry. Consider the very curious behavior of JP Morgan Chase, as reported in that little-noticed American Banker article from last week:
  

  JPMorgan Chase & Co. has quietly ceased filing lawsuits to collect consumer debts around the nation, dismissing in-house attorneys and virtually shutting down a collections machine that as recently as nine months ago was racking up hundreds of millions of dollars in monthly judgments.

  When a bank leaves money on the table for no obvious reason, you know that something’s not quite right. 

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Posted in bank scandal , credit cards , jp morgan , robo signing

Kodak Plans Focus on Printing Following Bankruptcy

If Kodak carries through with a Chapter 11 bankruptcy filing in the coming weeks as media reports suggest, it could mark the end of a rich, 131-year history as the king of all-things related to photos and cameras, according to a report by MarketWatch.com.

In the report, Rafferty Capital Markets Analyst Mark Kaufman says the company likely will completely exit the consumer photo and camera business.

"Forget about it. It's not making money now," Kaufman, told MarketWatch.com.

Instead, the plan would be for Kodak (NYSE:EK) to sell off all of its photo business, unload an extremely profitable chunk of its massive patent library and focus almost exclusively on digital printing as a business-to-business company.

"It's not a consumer business, its business-to-business. That's what you're going to have," Kaufman said in the report.

It is not all "doom and gloom" this change would be good news for the Dayton operations, where Kodak has 570 employees at a facility that makes inkjet printers, which are reportedly competing well in the marketplace against such rivals as Hewlett-Packard Company and Cannon.  According to an article published by the Dayton Business Journal, "With the company already having discussed plans for possible growth in Dayton through state and local incentives, an emphasis on the printing side of the business would make those plans more likely to happen. That could lead to more jobs in Dayton and a stronger business for Kodak going forward".

If the reports of how Kodak would look after emerging from bankruptcy are correct, the company may very well boost its operations in Dayton. In fact, the company already has expressed interest in growing locally.

In late September, the state of Ohio approved a tax credit package worth $2.9 million over 10 years to entice Kodak to expand in the Dayton region. In addition, the city of Kettering recently committed a $435,000 grant to the company.

State officials said if the company decides to expand in Kettering, it would invest at least $7.5 million in new manufacturing machinery as well as research and development equipment to help position the Kettering facility for future growth. Read the entire article from the Dayton Business Journal here.

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Posted in Chapter 11 Bankruptcy , kodak , kodak bankruptcy

Baseball: Bankruptcy on Base?

It's a new year and "bankruptcy" has been a hot topic in the game of baseball during 2011 and now 2012... According to an article published by Amazin' Avenue, sources say the Mets have hired CRG Partners — the same turnaround consultants that handled the Rangers' bankruptcy sale — and that a team sale with or without bankruptcy is on the table.

The Mets have confirmed the hiring, stating that they have "engaged CRG Partners to provide services in connection with financial reporting and budgeting processes."

The article further states that "Hiring turnaround consultants doesn't necessarily mean that the team is specifically preparing for bankruptcy and a sale — consultants like these are brought in to figure out how a struggling business can become profitable — but it further underscores the Mets' moribund financial situation. Also, a turnaround company typically gets only a modest fee if it comes in and merely makes recommendations; it has a considerable economic incentive to push for a huge sale when a sizable commission is in the offing".

Several sports-sites infer that Mets fans would actually be EXCITED about the prospect of bankruptcy, considering how well the Rangers' situation turned out following their filing of bankruptcy.

 The Amazin' Avenue article also examines what may be at jeopardy if the team indeed does file bankruptcy,  "Every bankruptcy sale has three parties: the ownership group that is in debt, the creditors, and the buyers. If this process is indeed in the Mets' future, it could be a long and difficult one with no shortage of delays and acrimony to come. William Snyder, the CRG consultant who led the Rangers' bankruptcy sale, made many enemies along the way — including new Rangers owner Chuck Greenberg, who said that he'd "met some duplicitous people in my life, but [Snyder] set a new standard." But part of the reason that the sale worked was because the bidding process upped the price and brought in more money for the team's creditors".

Whether you are excited about the possibility of new ownership and a fresh start for the Mets or upset about all the teams who seem to be "in over their head"... one fact remains, there is light at the end of the tunnel for the Mets. This team in a large market with a new stadium and regional sports network will have plenty of wealthy bidders lining up to the "base" hoping for their chance to "hit a home run" and take over ownership of this team.
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Posted in baseball bankruptcy , mets bankruptcy , new york mets , rangers bankruptcy