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The creditors of the New England Compounding Center, including victims of a meningitis outbreak, are looking into the possibility of reclaiming, clawing back, salary and shareholder payments.  In a Chapter 11 bankruptcy, creditors can go back two years from the date of the bankruptcy filing to reclaim payments that are improper or fraudulently conveyed.  Reports show that the largest shareholder received $9 million in 2012 while the chief pharmacist received $3.2 million in addition to what his … [Read more...]

With the last minute changes to the tax code, choosing the right tax preparer for your 2013 tax returns is very important.  Even though you may use a tax preparer to prepare your tax returns, you are legal responsible for everything that is on your tax returns.  Therefore, the Internal Revenue Service has given taxpayers tips on how to choose the right tax preparer.  The ten tips cover everything from the preparer’s qualifications to how to report abusive tax preparers. For all ten tips from … [Read more...]

Most people assume that filing for bankruptcy is the worst thing in the world and that they will loose everything they own - - this is not the case.  While it may not be the best move for everyone, anyone owing $1,000 or more without the assets to pay off the debt can file for bankruptcy relief.  Some individuals are now seeking to solve their credit problems with consumer proposals. For more information on consumer proposals read, “Bankruptcy a last resort, but not the end of the world, … [Read more...]

U. S. Bankruptcy Trustee, Joe Womack, received a tip that a debtor was hiding assets from the court.  Acting on this tip, Womack requested that the debtor, Philip Keith, give him a key to a safe deposit box located at Stockman Bank.  Keith did not submit the key requested by Womack so the trustee requested an order form the bankruptcy court allowing him to drill open the safe deposit box.  Upon having the lock drilled, Womack found $77,250 including $36,000. For more details on this story … [Read more...]

The famous video maker has filed for bankruptcy relief under Chapter 11 in an effort to break ties from its French parent.  Atari S.A. is burdened with debt; therefore, Atari U.S. filed for bankruptcy relief in hopes of finding a buyer for the US division.  Atari has gotten a commitment for debtor-in-possession financing to continue operations and to continue releasing games.  It is not clear yet if the company will be sold in its entirety or if it will be broken up and sold in pieces. For … [Read more...]

With A Stick, Inc. filed for Chapter 11 relief in August of 2012 due to financial troubles of the company and its owner.  The company owns Cocktail, a popular gay bar in Chicago.  Because of the failure to comply with bankruptcy court orders, the case was dismissed on January 8, 2013.  The dismissal allowed the landlord to seize the assets of the bar to collect over $85,000 owed to the landlord in rents. The owner, John Zaharakis and the corporation are defendants in various lawsuits alleging … [Read more...]

Dealing with money issues can cause feelings of sadness, grief and shame.  Many people forget that filing for bankruptcy relief is an emotional process.  Often people concentrate on compiling the necessary forms and information required for filing bankruptcy and neglect to acknowledge that there is an emotional aspect as well.  The mental burden of filing bankruptcy can be overwhelming for some people and can affect relationships in negative ways. For more information on the emotional toll of … [Read more...]

A previous bankruptcy and foreclosure typically prevent an individual from obtaining another mortgage to buy a new house. However, some lenders are viewing “extenuating circumstances" as a reason to grant some individuals a mortgage to buy another home.  The circumstances must be out of your control such as the loss of a job, a serious illness or the loss of a spouse who was the wage earner to qualify for the new loan.  You must also have good credit for a certain number of months after the … [Read more...]

Many famous people have been forced to auction their prized possession to pay their debts; however, this may be the grossest item ever to be auctioned off in a bankruptcy case.  Next month, Curt Schilling’s bloody sock is expect to auction for more than $100,000 in an online auction.  The sock was worn by Schilling during the 2004 World Series.  Schilling is the owner of 38 Studios, LLC that had to file for bankruptcy relief. For more items sold during bankruptcy actions read, “Schilling’s … [Read more...]

The Illinois Department of Revenue will follow the federal guidelines for filing 2013 tax returns.  The 2013 tax season will begin on January 30 for both federal tax returns and Illinois state tax returns.  Because of last minute changes to the American Taxpayer Relief Act (ATRA) by Congress, the Internal Revenue Service required additional time to update its systems and forms.  Therefore, the IRS announced that it would be begin processing tax returns until January 30. For more information … [Read more...]