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