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

NJ Devils On Thin Ice Facing Possible Bankruptcy

The heavily-indebted New Jersey Devils missed a Sept. 1 loan payment, giving their lenders a breakaway chance to push the three-time NHL champion into bankruptcy, the New York Post reported Monday.

It puts the team on thin ice ahead of the opening of training camp Tuesday, with a source saying, "The Devils are blowing up."
The attendance-challenged team's financial hardships could also affect Newark's four-year-old Prudential Center, the Devils' home arena.

Team-owned Devils Arena Entertainment operates the $375 million building and guarantees the Devils' loans and, therefore, is in danger of also going bankrupt.

Two issues were complicating matters. First, principal owner Jeff Vanderbeek and co-owner Ray Chambers, each of whom owns 47 percent of the franchise, are on the way out. Chambers, through his Brick City Hockey unit, has been trying to sell his non-controlling stake in the franchise for a year.

But the efforts of Chambers and Moag & Co., a Baltimore investment bank, have been unsuccessful, despite, a source said, cutting their asking price 20 percent to $200 million. Forbes last year estimated the Devils were worth $218 million, No. 11 in the league, down two percent from 2010. The team is ranked No. 25 in attendance.

Second, Vanderbeek's relationship with the lenders is as frosty as the rink surface at The Rock, as the arena is known. The Devils have told their banks to get lost, the source said.

"You have a bank group that wants nothing to do with Vanderbeek," a source said, adding that the group has been upset with how late they have been with financial information.

Some lenders were already considering selling their stakes to vulture investors, the source said, adding, "This is going to be a very difficult situation."

If the Devils -- who along with the arena operation company owe 15 percent more than the team is worth, according to Forbes -- are declared bankrupt, lenders cannot repossess the team and force a sale for at least 180 days. One source speculated that has already happened.

The Devils' past-due loan payment of roughly $100 million is owed to a CIT-led lending group. Devils Arena Entertainment owes $180 million, the source said.

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Posted in bankruptcy , Hockey Bankruptcy , NJ Devils

More College Graduates Filing For Bankruptcy

A wedding ring, college degree and a well-paying job: the American dream or a recipe for bankruptcy?

Some of the factors often associated with financial success are increasingly becoming correlated with personal bankruptcy filings, a study released Tuesday by the Institute for Financial Literacy found.

The study found that from 2006 to 2010, bankruptcy filings increased among college graduates and those earning $60,000 a year or more. What’s more, last year, 64% of bankruptcy filers surveyed were married—a number that also increased from five years ago.

“The Great Recession has had a dramatic impact on the bankruptcy filings of American consumers across the economic spectrum—including college educated, high income earners,” said Leslie E. Linfield, executive director the institute. “While less educated, low income individuals continue to represent the typical bankruptcy filer, this report underscores sophisticated evolution of the profile of the American debtor that now extends to disparate age, income and ethnic groups.”

The survey collected responses from some 50,000 of individuals that filed for bankruptcy in the past five years. All respondents had sought credit counseling.

The study found that those holding a bachelor’s degree accounted for 13.58% of filings last year, up from 11.2% in 2006—a 21% increase. Those holding high school degrees still accounted for the largest percentage of filers, 36.27%, but their proportion of all filers fell by 8.6%.

Those most at risk for a bankruptcy filing were individuals who attended college but did not complete a degree, the study said. They accounted for 28.7% of filings last year.

“This we suspect is because they have all the burdens of school related debt and none of the rewards of an actual degree,” the study said.

While those earning less than $20,000 per year accounted for nearly 40% of all filings, higher-income earners saw their ranks grow in the past five years, the study found.

Those earning $60,000 or more accounted for 9.2% of all filings last years, up from 5.5% in 2006, a 67% increase.

The study found that the number of filers who were married jumped above 60% in the past five years, from 57.2% in 2006. That out paces the 50.3% of U.S. adults that are married, according to the Census.

Based in Maine, the Institute for Financial Literacy is a nonprofit organization that promotes effective financial education and counseling.

Read original article here.

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Posted in bankruptcy , bankruptcy filings , college bankruptcy

Harrisburg Council Rejects Plan to Address It's Debt Crisis

Aug 31 (Reuters) - Pennsylvania's capital of Harrisburg rejected a rescue plan designed to address its debt crisis on Wednesday, in a move that could prompt a state takeover of its finances. In an 4-3 vote, the Harrisburg City Council rejected a plan put forward by Mayor Linda Thompson. The vote came less than two months after the council rejected another plan presented by a state-appointed advisor.

Harrisburg -- a city of 50,000 about 100 miles west of Philadelphia -- is one of a handful of U.S. cities and counties that have teetered toward economic collapse in the wake of the 2007-09 recession. A string of failures could rattle the $2.9 trillion U.S. municipal debt market.

The mayor has said that Harrisburg could run of money next month, meaning it could miss a Sept. 15 bond payment and be unable to pay city workers.

Read original article here.

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Posted in bankruptcy , harrisburg debt crisis

US Bankruptcy Claims Trading Hits 12-Month High

Aug 23 (Reuters) - The value of U.S. bankruptcy claims traded in July was the highest since the same month a year earlier, according to a report released on Tuesday.
The face value of traded claims rose to $3.55 billion, the highest since $12.78 billion in July 2010, according to SecondMarket, which runs a claims trading platform.

The number of claims traded slipped to 1,340 in July from 1,809 in June but the number of underlying bankruptcy cases that had claims changing hands rose to 59.

Lehman Brothers Holding Inc, the largest bankruptcy in U.S. history, led both the number of claims and the value of traded claims, as it does every month.

Other active cases included restaurant chain Perkins & Marie Callender, telecoms firm Nortel Networks Inc and HearUSA Inc, a hearing-aid maker. (Reporting by Tom Hals; Editing by Gary Hill)

See original article here.

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Posted in bankruptcy , bonds , claims , US Bankruptcy

How to Recover From Bankruptcy

According to a recent report by US and World Reports, "If you have recently filed for bankruptcy, perhaps you can find some comfort in the fact that you are not alone. According to the American Bankruptcy Institute, the total number of bankruptcy filings in the United States increased 8 percent in 2010, to a total of 1.6 million, and the numbers for 2011 are expected to rise even higher.

But just because bankruptcy is increasingly common doesn't make it any less stressful. People who file for bankruptcy often feeling ashamed, overwhelmed, and hopeless. Here are eight tips on how to recover:

Address what caused the bankruptcy. Perhaps you need to set a new budget or look for new types of employment, so you don't find yourself in the same financial straits five years from now.

Identify your goals. Recovering from bankruptcy can mean anything from reestablishing a healthy credit score to paying off all of your debts. To help focus your progress, pick a handful of top goals to work toward.

Check your credit score. Inaccurate information often plagues credit reports, which can affect everything from job applications to mortgage rates. Simply removing incorrect information often significantly improves your score.

Gradually re-establish credit. Taking out two credit cards and paying them off fully each month can help rebuild a credit score that's been dragged through the mud. After one year, that score will start to improve, and after seven to 10 years, it could look as good as new.

Find a new credit card issuer. While lenders often hesitate to give credit cards, car loans, and other forms of credit to people with a history of troubled loans, it's usually possible to find a willing lender. The terms might not be ideal, but new accounts will help rebuild credit history.

Over the last two years, card companies have tightened their standards in the wake of rising default rates and have raised interest rates even on reliable customers. Card comparison sites can help maximize the chances of getting the best deal possible. Secured cards, which function more like debit cards, are often the best option for those trying to rebuild their credit.

Avoid unfair deals. Predatory lenders often target vulnerable groups, including recent bankruptcy filers. That's why recent filers should be wary of organizations and companies offering payday loans and rent-to-own deals that carry high interest rates. Consumers are often so eager for credit approval that they jump on contracts with high interest rates, but it's usually better to wait.

Seek support. People recovering from bankruptcy can feel like social pariahs; finding yourself in this situation can be embarrassing and even shameful. But online communities of people going through the same thing can help provide the much-needed emotional support.

Think positively. Most people's credit improves after filing for bankruptcy, because debts are cleared to give them a fresh start. While the bankruptcy filing will stay on your credit report for 10 years, many creditors are willing to take a chance on lending to those who have been in bankruptcy.\

Sometimes working with a professional credit counselor or bankruptcy attorney can help make the recovery process easier; bankruptcy attorneys often offer free initial consultations and then arrange for future payments. It's not always expensive. Some professionals provide services at reduced rates or even for free. But if anyone promises to improve your credit score quickly or makes another offer that sounds too good to be true, there's a good chance it's a scam. Be sure to research any company or individual counselor online before working with them to ensure your path away from bankruptcy is as bump-free as possible".


Click here to read the original article at US and World Reports.

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Posted in bankruptcy , bankruptcy filings , credit score , recovering from bankruptcy

Tony Braxton Graduates from Bankruptcy School

Tony Braxton may be broke, but she is educated on how to better manage her finances this time around. According to a recent report by TMZ, the singer recently completed a court ordered class on personal financial management and has a certificate to prove it!

Click Here to see the certificate, courtesy of TMZ!

Braxton filed for bankruptcy last year, claiming she was in debt somewhere between 10 and 50 million dollars.

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Posted in bankruptcy , Personal Fiance Management , Toni Braxton

Boise County, Idaho Files for Bankruptcy

Boise County, Idaho, has filed for municipal bankruptcy protection, but not because of falling tax revenue, rising spending, unfunded pension obligations or any of the other problems that have raised concern about city and county finances nationwide.

The small, rural county—which, despite its name, isn't home to the capital city of Boise—sought protection from its creditors this week because of an inability to pay a multimillion-dollar judgment against it, County Commissioner Robert A. Fry said.

Municipal-bankruptcy filings are uncommon—this is the first in 2011, and there were six in 2010, according to Jim Spiotto of law firm Chapman and Cutler LLP—and frequently are associated with speculative land development, many in California and Florida.

Mr. Fry said in a telephone interview that the county, population about 7,500, had little choice but to seek bankruptcy-court protection after it lost a federal lawsuit brought by the developer of a proposed residential treatment facility that would have housed 72 boys.

When the county placed restrictions on the developer, Oaas Laney LLC, the firm sued under the federal Fair Housing Act and won a $4 million judgment plus $1.4 million in attorneys' fees. Boise County has an annual operating budget of about $9.4 million.

The county appealed while simultaneously trying to work out a settlement with the developer. That didn't work, and the firm threatened to seize county assets, according to Mr. Fry.

"We made an offer that was the maximum we could reasonably be expected to pay," the commissioner said. "But they said they were going to seize county funds. That left us with little options."

Oaas Laney couldn't be reached for comment.

The county filed an appeal notice, which now has been stayed because of the bankruptcy filing, Mr. Fry said.

Boise County has no bonded debt.

Read the Original Article Here

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Posted in bankruptcy , Boise County , Idaho , Municipal Bankruptcy

Unemployment Rates Impact Number of Foreclosures

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

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

 

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

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

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

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

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

Nationwide, the rate was one in 45 homes.

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

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

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

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

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

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

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

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

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

States Allowed to File Bankruptcy, Could be a Reality Soon

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

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

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

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

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

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

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

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

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

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