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Part of the duties of the United States Trustees Office, a division of the Justice Department, is to review bankruptcy filings to make sure that they are in accordance with current bankruptcy laws. The Trustee’s Office has objected to a severance payment in the American Airlines bankruptcy stating that the payment is more than is allowed by bankruptcy law. According to documents filed, the Trustee objects to American Airlines CEO, Tom Horton, receiving a $20 million severance payment. The … [Read more...]

After years of financial troubles, a Lower Manhattan dance space has filed for relief under Chapter 11. Dance New Amsterdam has filed for bankruptcy protection so that it can enter a five-year plan that will allow it to continue to operate rather than closing its doors. The non-profit company teaches dance and services more than 30,000 students and performers in addition to over 700 dance companies and other performing arts groups. For additional details on this story read, “Dance New … [Read more...]

A major issue in the Patriot Coal Corp. bankruptcy has been the benefits and pay of the miners, retirees and dependents. Patriot has argued that without the deep cuts in pay and benefits that it would be forced to liquidate while the Union has threatened to strike if the cuts were too severe. In a ruling this week, a bankruptcy judge stated that it is evident that Patriot must be allowed concessions in order to survive. A Union representative said they would appeal the decision. For more … [Read more...]

Primcogent Solutions LLC filed for bankruptcy protection in an attempt to maintain a licensing agreement that allows it to sell the Zerona, a machine that uses lasers to perform liposuction by “melting” fat cells. Primcogent argues that the manufacturer misled the company before terminating the licensing agreement; however, the manufacturer alleges that this is simply a contract and patent law dispute that does not belong in Bankruptcy Court. For more read, “Fat-Melting Laser Distributor … [Read more...]

If you are still recovering from the payroll tax hike that took effect January 1, you are not alone. A study release this week by the New York Federal Reserve shows that consumers intend to cut spending due to the payroll tax hikes.  The amount of spending that Americans plan to reduce rises as the average income goes down.  Saving money and reducing debt are likely to go on the back burner as well due to the loss of income from higher payroll taxes. For more read, “Payroll tax hike prompts … [Read more...]

Another celebrity has filed for bankruptcy relief but this one is not a first time filer. David Adkins, better known to his fans as Sinbad, has filed for bankruptcy relief. This is the second bankruptcy filing for the comedian (the first filing was in 2009). In his current bankruptcy, Adkins is claiming that his only income is $16,000 per month but he owes approximately $11 million in debt and only has $131,000 in assets. For the complete story read, “Sinbad Broke: Comedian Files For Second … [Read more...]

You have moved into your dream home and you realize that you are living beside the worst neighbors. They are not just noisy they are disruptive to your daily life and are unwilling to compromise or even discuss the situation. As a homeowner, you have certain rights in regard to noisy neighbors. You can try talking to your neighbors first but if that fails check your lease or Homeowner’s Association Agreement for specifics regarding noise. For more read, “Legal How-To: Dealing With Noisy … [Read more...]

Taxpayers in Illinois paid over $3 billion more last month – a 33% increase. Gov. Quinn said the extra funds would be used to pay some of the state’s massive debts - - over $9 billion. Officials are quick to remind people of the state’s high unemployment rate of over nine percent, second highest in the country. When combined with other factors, officials say that it is not safe to believe this trend may continue next year. For more read, “Illinois income tax collections rise 33% in April.” … [Read more...]

Dr. Akshay Desai has been accused of hiding assets in the bankruptcy case of Universal Health Care.  The trustee in Universal’s bankruptcy case has alleged that Dr. Desai moved money to a nonprofit foundation before transferring it to a college attended by his children.  The bankruptcy trustee also believes that Dr. Desai has attempted to hide larger sums of money from the bankruptcy and plans to investigate and recover the money for the bankruptcy estate. To read more see, “Universal CEO … [Read more...]

The devastating storms that hit Oklahoma could have happened almost anywhere in the United States. Homeowner’s are faced with the emotional and daunting task of trying to recover and rebuild. When a homeowner’s experiences the loss of their home, there are certain things they must keep in mind. One is not to re-enter their home until it is safe. Another is to refrain from signing any documents until they have read them completely and understand the legalities. For eight more tips read, “After … [Read more...]