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Retirees are very worried about how they will be treated in the Detroit bankruptcy. Now that the bankruptcy court judge has granted retirees a spot on the creditors committee to represent the city’s retired employees, retiree associations are vying for those spots. A newly created retiree association, The Retired Detroit Police Members Association, was formed just five days prior to Detroit’s bankruptcy filing. That association seems to be overlapping with the Retired Detroit Police and Fire … [Read more...]

When Detroit filed the largest municipal bankruptcy in US history in July, the bankruptcy action stayed any legal action against the city as well as prevented any new legal actions from being filed against the city. This stay included property tax appeals for Detroit property owners. However, this week Bankruptcy Judge Steven Rhodes ruled that property owners within Detroit could file property tax appeals but could not collect on any decisions without prior approval from the court. To read … [Read more...]

Some people love their credit union to the point that they want to pursue that relationship after filing bankruptcy. However, there is an upside and more than just one downside to preserving your banking relationship with the credit union. One downside is a reaffirmation agreement that will give the credit union the right to sue you for any unpaid balance even after the bankruptcy. Having an attorney advise you of your rights regarding bankruptcy and credit unions is the best way to make an … [Read more...]

There are numerous reasons why a small business owner might face a bankruptcy; however, knowing the available options is the number one priority before deciding how to handle financial troubles. Contacting a bankruptcy attorney to get advice is a good first step in deciding how to proceed with regard to a potential bankruptcy filing. Several bankruptcy options exist and each has its own merits, consequences and costs. For example, a Chapter 7 liquidation may be suitable for one business but … [Read more...]

The rapper known as DMX has filed for protection under Chapter 11 of the bankruptcy code. The famous artist sites “financial strains” and “poor financial management” as reasons for the bankruptcy filing. His publicist states that the financial strains have inhibited his career for many years. Court papers reflect that DMX has less than $50,000 in assets but between $1 million and $10 million in debt. A huge part of the debt is the $1.24 million he owns in child support. For more on this … [Read more...]

Filing for bankruptcy gives debtors relief from most debts; however, not all debts are dischargeable in a bankruptcy. For example, taxes are treated differently than other types of debts during a bankruptcy action. For example, if you are being audited by the IRS and file for bankruptcy relief, the bankruptcy will not stop the audit. It may stop collection actions during the bankruptcy but it will not stop the audit from proceeding. Most taxes are not dischargeable in a bankruptcy case. … [Read more...]

Cities across the nation are faced with increasing financial problems. These financial woes are caused by a variety of things. Some may be similar others are more unique depending on the city. One city in Rhode Island was very near bankruptcy but was able to come back from the brink of filing. Woonsocket Rhode Island was very near bankruptcy last year but an aggressive five-year plan saved the city. To view a video and read more see, “How one Rhode Island city averted bankruptcy.” … [Read more...]

Bankruptcy Judge Stuart M. Bernstein ruled that the plaintiffs in a two billion dollar whistleblower lawsuit missed their deadline to assert claims in the Hawker Beechcraft bankruptcy case. The case alleged that Hawker sold planes with defective parts to the US government. The bankruptcy judge ruled that the plaintiffs missed the deadline even though they were never sent the deadline date. Packets were mailed stating that a letter would be sent “at a later time” but this notice was never … [Read more...]

The Chapter 9 bankruptcy filed by Detroit has dominated the news for the past two weeks. However, some of the information that is being discussed may or may not be completely. For example, people are blaming corrupt government, unions, the auto industry and government services for the bankruptcy. While this might have some truth, it is hard to point at any one cause for Detroit’s financial problems and pending bankruptcy. For a detailed analysis of Detroit’s bankruptcy read, “Detroit: Myths … [Read more...]

The real estate market has definitely been a buyer’s market for a few years; however, it is beginning to turn a little bit in favor of sellers. One change is that buyers are facing competition form other potential buyers in the form of bidding wars. Of course, the best way to win a bidding war is to pay more than any other seller is willing to pay. However, being flexible with other terms may help you win a bidding war without overpaying for a property. For more ways to win a bidding war … [Read more...]