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As it claims that it cannot pay its bills or even afford its current payroll, San Bernardino claims it needs the protection of the bankruptcy court while voting to increase salaries for some employees. The city approved over $1 million in additional pay increases for police and firefighters, just days before it is set to appear before a bankruptcy judge to argue that it needs bankruptcy protection. The city claims that its charter forces it to raise the salaries based on a formula used for … [Read more...]

Kevyn Orr was named as the emergency manager of Detroit by Michigan Gov. Rick Snyder. Orr is a bankruptcy attorney and will have many of the same powers that a bankruptcy judge would have including canceling city contracts. This does not necessarily mean that Detroit may not have to file for bankruptcy relief. Orr believes that he can affect a turnaround within eighteen months. The appointment was opposed by city council but backed by the Mayor. For more details read, “Detroit, in … [Read more...]

As part of the merger agreement by American Airlines and US Airways, CEO Tom Horton will receive almost $20 million in severance. Other employees will also receive severance or retention payments under the proposed merger. The United States Trustee’s office has filed an objection to the payments stating that American Airlines, and its parent company, failed to state reasons why the payments would be permissible under the United States Bankruptcy code. To be allowed, the Trustee’s office … [Read more...]

As part of its Chapter 11 bankruptcy filing, Reader’s Digest is required to report payments to individuals and companies that are considered “insiders” within one year of the date of the bankruptcy filing. Insiders include officers, directors, board members, equity owners owning at least 5% of the company and other parties that are directly related to the operation or ownership of the company. Reader’s Digest discloses payments of over $28 million to insiders but does not disclose the identity … [Read more...]

With the filing of its Chapter 7 bankruptcy case, Advanced Interactive Systems, Inc. dumped a huge problem in the lap of the bankruptcy trustee assigned to its case - - what to do with any firearms or weapons owned by the company. Advanced Interactive owns several shooting ranges and trains security professionals. Bankruptcy filings indicate that it has at least 15 guns, including an AR-15 rifle and numerous parts. The duty of disposing of those guns will now be the problem of the trustee. … [Read more...]

Casey Anthony filed for protection under Chapter 7 of the bankruptcy code claiming that she was unemployed and that she could not afford to pay her debts. Anthony testified at her First Meeting of Creditors that she has never received any money for her story. The bankruptcy trustee in Anthony’s case has filed a motion with the court asking for permission to sell Anthony’s life story through the bankruptcy court. The money would be used to pay Anthony’s debts. For more you can read, “Date … [Read more...]

The group that has offered $410 million to purchase Twinkies, and other Hostess brands, out of bankruptcy has already been thinking about how to get the tasty treats back on store shelves. One of the members of the group, Evan Metropoulos, has said that possible stars that might appear in future advertising campaigns include Zach Galifianakis and the men of “Duck Dynasty.” Metropoulos should know all about advertising as his family owns Pabst Brewing co. For more details read the full story … [Read more...]

Geokinetics was forced to file for bankruptcy protection after it missed a $14.6 million interest payment on notes that was due in December and failed to meet the 30-day grace period note holders gave the company to make the payment. Bankruptcy forms show that Geokinetics has approximately $12 million in assets but over $350 million in debt. The company analyzes and provides data to oil and gas companies. According to the company, it has already reached an agreement with senior secured note … [Read more...]

Last year, Discover purchased the mortgage business known as Tree.com Inc. and began to fund residential loans under that business entity. Now Discover Financial Services says that it will begin offering home equity loans as it pushes further into the direct banking market. Discover will offer fixed-rate home loans up to $100,000. The company feels that the real estate market has shown a sustained recovery and demand for homes is rising. The company also wants to tap into the market of … [Read more...]

Unfortunately, many of us have had to deal with debt collectors. Their job is to harass consumers until they agree to pay the debt. There are laws that prevent debt collectors from crossing certain legal lines in their harassment; however, knowing what acts are not permitted under the Fair Debt Collection Practices Act helps consumers know how to deal with debt collectors. For example, late-night telephone calls are not permitted and calls must stop when you file a bankruptcy. For more … [Read more...]