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Probably the first thing to know about bankruptcy and foreclosure is that filing a bankruptcy will often delay or stop a foreclosure action.  This allows the homeowner time to vacate the home or propose a reorganization plan to catch up the payments. Something that you may not know is that there are a few exceptions to the automatic stay that stops the foreclosure.  Furthermore, the type of bankruptcy case you file will affect how the foreclosure is treated going forward. For more about … [Read more...]

For employees affected by the government shutdown, it is not business as usual.  They are not sitting at home by choice and are losing income each day the government is closed.  Federal furloughed employees should follow many of the same personal finance tips as anyone facing a loss of income.  First – do not panic.  Making hasty financial decisions could make matters worse.  Do not react with emotion but take time to think before making major financial decisions.  Postpone trips and major … [Read more...]

After seven decades of entertaining New Yorkers and thousands of visitors, the New York City Opera will shut its doors for good.  The city opera announced that it would be filing bankruptcy and closing down after it failed to raise the $7 million it needed to continue operating.  The final three productions that were planned for this season will be canceled due to the bankruptcy.  The opera has not done well since it was moved out of the Lincoln Center. For more read, “NYC Opera to file for … [Read more...]

Depending on how you look at it, the government shutdown is both good and bad for taxpayers.  Without federal funding, the Internal Revenue Service will not conduct audits.  However, if you filed an extension for last year’s tax return it is still due by October 15 and if you owe taxes, you must also pay them by October 15 even though refunds will probably be delayed due to the shutdown.  Need help with those last minute tax returns – you are out of luck.  The IRS has closed walk-in centers and … [Read more...]

The United States Supreme Court has agreed to hear a case involving FICA taxes on severance pay.  The case is between Quality Foods, who filed bankruptcy in 2001, and the Internal Revenue Service.  Quality Foods paid its workers a severance package and withheld FICA taxes.  Later, it filed for a tax refund claiming that severance pay was not subject to FICA taxes – the IRS disagreed.  Now the case will go before the US Supreme Court for a final determination.  The decision could ultimately … [Read more...]

Over one million people filed for bankruptcy relief last year with the top reasons being medical expenses and unemployment rather than overspending.  The fact remains that individuals and couples will continue to experience financial trouble that results in a bankruptcy filing.  However, there is good news for those filing for bankruptcy relief - - your financial life can be revived after bankruptcy.  The first step is to address the cause of the bankruptcy and take steps to prevent that series … [Read more...]

If you borrowed money to attend college so that you could get a great job making good money so you could buy a home, you are not alone.  Unfortunately, many college students are now facing a decision - - buy a home or pay off student loans.  You can do both if you are willing to sacrifice some discretionary spending and live within your means.  Waiting until you pay off your student loans to buy your first home may not be your smartest move. To learn how you can do both read, “Pay Off a … [Read more...]

Unfortunately, some couples who are struggling financially are also struggling in their marriage.  Money problems are one of the top reasons that many couples argue.  Often, this continues until the couple is facing bankruptcy and even a divorce.  If you are facing both at the same time, you should seek a family law attorney who understands bankruptcy or is willing to work in conjunction with your bankruptcy attorney.  There are some instances when filing a bankruptcy prior to a divorce can … [Read more...]

If Congress cannot come to an agreement by the end of today, thousands of workers in Chicago will be affected.  Thousands of federal employees such as military personnel, air traffic controllers, TSA workers and those working for national security agencies, will be expected to report to work even though they will not be paid.  Even more federal employees will be furloughed without pay until the matter is resolved.  Government agencies are scrambling to institute plans that will continue … [Read more...]

Another company based in Chicago has been forced into Chapter 11 bankruptcy to fend off creditors.  Keywell LLC, claiming a lack of demand and a depressed global economy, filed for bankruptcy protection this week.  An officer for the company stated that they want to sell the company and already have an offer from a Pennsylvania company.  According to bankruptcy documents filed with the court, Keywell owes almost $28 million.  The company was originally founded in 1924 and employees 119 people. … [Read more...]