708-598-5999

Orchard Supply Hardware Stores filed for relief under Chapter 11 this week. The California based hardware store chain operates solely in California. The home improvement giant Lowe’s has put in a “stalking horse” bid for the stores of $205 million. This will increase its presence in the California home improvement market if it can pick up Orchard and continue to operate its stores. It currently plans to continue under the Orchard name as a standalone business. For more information on this … [Read more...]

A happy home can be ruined by what lies next door - - your neighbors. Disputes with neighbors are increasing according to a recent survey. The survey sought to discover the most common neighbor disputes and how disputes were solved. The top five disputes according to the survey are noise, pets and animals, children’s behavior, appearance and property boundaries. These problems can cause huge problems for neighbors as disputes escalate into arguments and litigation. To find out how disputes … [Read more...]

Bank of America is at the center of a scandal regarding home loan modifications. Six former BOA employees allege that the bank lied to homeowners and denied loan modifications even in cases where the homeowners were eligible for the modifications. Employees allege that the bank rewarded employees who placed accounts in foreclosure while punishing those who did not have enough accounts placed into foreclosure. Furthermore, the employees allege that BOA provided false information to the … [Read more...]

Chicago billionaire Joe Mansueto is one of the largest investors in bankrupt Carbon Motors Corp. He invested about $3.6 million in the company that was supposed to produce high-tech police cars. Carbon filed for Chapter 7 bankruptcy relief reporting less than $20,000 in assets but over $21 million in liabilities. Problems began after the US DOE failed to grant Carbon’s loan request last year of over $300 million. Suppliers such as BMW and Inteva Products are said to be owed millions. For … [Read more...]

Only a portion of Michael Hedlund’s student loans were discharged and it took 10 years of legal battles; however, that is a positive step for debtors who want to fight to have student loans discharged. Most student loans are non-dischargeable in bankruptcy but Hedlund decided to argue that his student loans should be discharged under what has become known as the “Brunner standard.” In order to qualify, debtors must file an adversary proceeding (a lawsuit within the bankruptcy case) to prove … [Read more...]

The Chapter 11 bankruptcy trustee for Louis Pearlman, the person behind ‘N Sync and Backstreet Boys, filed his proposed bankruptcy plan after numerous lawsuits to secure funds for creditors. Kapila fled more than 700 lawsuits since 2007 when he was appointed to try to claw back more than $100 million. To date, he has collected about $30 million from the lawsuits. This translates into about four cents for every dollar owed to creditors. Creditors still must vote on the proposed plan. For … [Read more...]

When a debtor files for bankruptcy relief, if they fail to file all required schedules, statements and documents, they have 14 days to file the documents. In the event the forms are not filed, the case can be dismissed. This is what happened in the Halsey Minor case. His attorney is asking that the dismissal be reversed because the attorney made the decision not to file the documents on the deadline as they were missing some information. The attorney is arguing that the debtor should not be … [Read more...]

The House passed a bill that will allow the Federal Housing Authority (FHA) to limit the amount of lump-sum payments that lenders are allowed to offer borrowers on their reverse mortgages. The FHA can also now require that escrow accounts be established to pay for property taxes and insurance on the mortgaged properties. Under the bill, the FHA can change the terms for new reverse mortgages in an attempt to make reverse mortgages more financially sound for the FHA to insure. For more details … [Read more...]

Kevyn Orr, the emergency manager appointed for Detroit, is working hard to make deals with the city’s creditors in an attempt to avoid bankruptcy. In a statement last week, Orr said that creditors refusing to make deals in the belief they will have a better chance if the city files for bankruptcy under Chapter 9 of the United States Bankruptcy Code are mistaken. Even though he has significant power know, bankruptcy might help even more. To get a better understanding of Chapter 9 and how it … [Read more...]

It is common knowledge that in most instances if you take an early withdrawal from your IRA you will pay a penalty. However, if you are willing to adhere to the requirements of 72(t) of the United States Tax Code, you can take an early IRS withdrawal without paying a penalty. You will still be taxed on the amount you withdraw but you will not be charged a penalty provided the distributions are “substantially equal periodic payments” or SEPPs under 72(t) and meet each of the requirements set for … [Read more...]