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The Chicago suburb of Dolton is facing a financial crisis. The village’s Board went over budget by almost $4 million each year for the past ten years. This deficit has left the village broke and facing bankruptcy. The current Board is borrowing money from other accounts to pay its current bills and employee salaries. Layoffs are expected in various city departments as the Board tries to decide the best course of action for the village. For the complete story read, “Officials say Chicago … [Read more...]

Diana J. Stout, a Bethesda woman, was sentenced to two years in prison, three years supervised release and $150,000 in restitution payments for bankruptcy fraud. Stout filed for Chapter 7 bankruptcy relief in April 2010. She failed to disclose assets including an 18-karat white gold bracelet with 75 diamonds, 797 shares of stock and 2 vehicles. She sold these assets, pocketed the money and never disclosed the transfers to her Bankruptcy Trustee. For more details about how Stout attempted to … [Read more...]

The Unites States Trustee’s Office is charged with overseeing the country’s bankruptcy trustees and reviewing bankruptcies filed in the United States. As part of its duties, the Trustee’s Office files objections in bankruptcy cases when it feels that something is not in accordance with the Bankruptcy Code. After reviewing its performance during the past year, the UST has given itself most “A’s” in everything except cracking down on executive bonuses in Chapter 11 cases. For more details … [Read more...]

Part of the duties of the United States Trustees Office, a division of the Justice Department, is to review bankruptcy filings to make sure that they are in accordance with current bankruptcy laws. The Trustee’s Office has objected to a severance payment in the American Airlines bankruptcy stating that the payment is more than is allowed by bankruptcy law. According to documents filed, the Trustee objects to American Airlines CEO, Tom Horton, receiving a $20 million severance payment. The … [Read more...]

After years of financial troubles, a Lower Manhattan dance space has filed for relief under Chapter 11. Dance New Amsterdam has filed for bankruptcy protection so that it can enter a five-year plan that will allow it to continue to operate rather than closing its doors. The non-profit company teaches dance and services more than 30,000 students and performers in addition to over 700 dance companies and other performing arts groups. For additional details on this story read, “Dance New … [Read more...]

A major issue in the Patriot Coal Corp. bankruptcy has been the benefits and pay of the miners, retirees and dependents. Patriot has argued that without the deep cuts in pay and benefits that it would be forced to liquidate while the Union has threatened to strike if the cuts were too severe. In a ruling this week, a bankruptcy judge stated that it is evident that Patriot must be allowed concessions in order to survive. A Union representative said they would appeal the decision. For more … [Read more...]

Primcogent Solutions LLC filed for bankruptcy protection in an attempt to maintain a licensing agreement that allows it to sell the Zerona, a machine that uses lasers to perform liposuction by “melting” fat cells. Primcogent argues that the manufacturer misled the company before terminating the licensing agreement; however, the manufacturer alleges that this is simply a contract and patent law dispute that does not belong in Bankruptcy Court. For more read, “Fat-Melting Laser Distributor … [Read more...]

If you are still recovering from the payroll tax hike that took effect January 1, you are not alone. A study release this week by the New York Federal Reserve shows that consumers intend to cut spending due to the payroll tax hikes.  The amount of spending that Americans plan to reduce rises as the average income goes down.  Saving money and reducing debt are likely to go on the back burner as well due to the loss of income from higher payroll taxes. For more read, “Payroll tax hike prompts … [Read more...]

Another celebrity has filed for bankruptcy relief but this one is not a first time filer. David Adkins, better known to his fans as Sinbad, has filed for bankruptcy relief. This is the second bankruptcy filing for the comedian (the first filing was in 2009). In his current bankruptcy, Adkins is claiming that his only income is $16,000 per month but he owes approximately $11 million in debt and only has $131,000 in assets. For the complete story read, “Sinbad Broke: Comedian Files For Second … [Read more...]

You have moved into your dream home and you realize that you are living beside the worst neighbors. They are not just noisy they are disruptive to your daily life and are unwilling to compromise or even discuss the situation. As a homeowner, you have certain rights in regard to noisy neighbors. You can try talking to your neighbors first but if that fails check your lease or Homeowner’s Association Agreement for specifics regarding noise. For more read, “Legal How-To: Dealing With Noisy … [Read more...]