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...

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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...

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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...

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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...

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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,...

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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. ...

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