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New guidelines for attorney’s fees in Chapter 11 bankruptcies are scheduled to take effect on November 1. The guidelines are aimed at taming some of the enormous fees that some attorneys charge in Chapter 11 cases - - in some cases up to $1,000 per hour. The new guidelines will apply in Chapter 11 cases where debtors have at least $50 million in assets and $50 million in debt. The guidelines will instruct trustees on when and how to request more information from attorneys with regard to fees … [Read more...]

A bankruptcy judge gave AMR approval to send its bankruptcy plan to creditors for a vote. This came after objections by the United States Trustee’s office. As part of the plan, AMR will merge with US Airways with current shareholders receiving 3.5 percent of the newly formed airline. One key problem, a $20 million severance package for AMR’s Chief Executive will now be subject to creditor approval. For more details read, “AMR can send restructuring plan to creditors for a vote: judge.” … [Read more...]

Credit reporting agencies make mistakes more often than most people assume. A simple notation can cause your credit score to drop by more than 100 points and hurt your chances of obtaining a good interest rate or even obtaining credit at all. You should check your credit report periodically to make sure that all of the information is correct. The number one most common credit report mistake is incorrect or outdated credit information. Listing inaccurate information (i.e. a co-signor’s … [Read more...]

If Detroit files for bankruptcy relief, the art held by the Detroit Institute of the Arts could be sold at bankruptcy auction to pay off the city’s debt. In addition to pieces by Van Gogh and Rembrandt, the art institute has a statute of Rodin’s The Thinker and other famous pieces. Kevyn Orr, the state appointed emergency manager for Detroit, requested an appraisal from the museum. The estimated value of the artwork is thought to be $15 billion. The museum is already looking into ways to … [Read more...]

Louis Freeh, the bankruptcy trustee assigned to the MF Global case, issued a statement this week announcing that he had concluded his duties as trustee and was handing over the final responsibilities and duties to a newly appointed board of directors. The bankruptcy court had previously approved of a liquidation plan for MF Global, which the board will continue to implement after the trustee’s departure. Customers have received most of their money back with creditors slated to receive only a … [Read more...]

Jerry Goldstein, Sly Stone’s ex-manager, put filed for Chapter 11 bankruptcy relief for two of his companies (Even Street Productions Ltd. And Majoken Inc.) in an attempt to avoid a foreclosure. The companies own the trademark to the name “Sly and The Family Stone” which has been the subject of much controversy and litigation for many years. Stone currently has a $50 million lawsuit pending against Goldstein alleging Goldstein took royalties that should have been paid to Stone. For more … [Read more...]

The Chapter 11 Bankruptcy trustee for Dvorkin Holdings, LLC has filed suit against several of Daniel Dvorkin’s relatives in an attempt to recover funds that could be used to pay creditors in the bankruptcy case. Dvorkin is facing criminal charges after being accused of hiring a hit man to kill a business associate. Dvorkin Holdings LLC, his former holding company, is the subject of the Chapter 11 bankruptcy case. For more details about the individual lawsuits read, “Dvorkin bankruptcy … [Read more...]

Did you know that there is a secret network of agents that have listings that no one else knows about? Well, if you are then you may be lucky enough to snag one of these great homes before it is offered to the public at large. Homes that are for sale but have not been listed with MLS are known as pocket listings. There are several advantages of pocket listings and some agents are using these to the advantage of their clients. For more about pocket listings read, “Tapping into real estate's … [Read more...]

IGPS Co, LLC filed for bankruptcy relief blaming its financial troubles on missing pallets. The irony is that the pallets are traceable. IGPS owns millions of plastic pallets that are traceable because of real-time tracking embedded in the pallets. IGPS lost over a million of the pallets causing a default on loans resulting in creditors demanding immediate payment. IGPS filed bankruptcy with the intent of selling is assets to a predetermined purchaser. For more details read, “Traceable … [Read more...]

As it struggles to exit bankruptcy successfully, Eastman Kodak first must deal with ghosts from its past. Multiple claims have been filed by state and federal officials claiming that the company owes millions of dollars for environmental damage to the Genesee River. The environmental issues relate to toxic chemicals that were leaked and spilled at the Eastman Business Park in New York. Kodak paid over $2 million in 1990 for violations of environmental laws. As part of its bankruptcy, Kodak … [Read more...]