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New guidelines regarding the fees charged by attorneys in corporate bankruptcies are scheduled to be announced by July 1. These guidelines are designed to lower the fees that attorney’s charge debtors, and sometimes creditors, in corporate bankruptcies. Some attorneys can charge up to $1,000 per hour in very large cases. Some feel that this is not fair when creditors are only receiving a portion, sometimes pennies on the dollar, of the amount owed to them. Other professionals involved in … [Read more...]

Many first time homebuyers are so excited about purchasing their first home that they fail to take into consideration how they will pay for this home in addition to their other bills and living expenses. The Department of Housing and Urban Development (HUD) advises that homebuyers should purchase a home that will cost no more than thirty-one percent of their gross monthly income. Of course, other variables must also be taken into consideration when deciding how much you can spend for your … [Read more...]

Casey Anthony, acquitted of the murder of her daughter, filed for bankruptcy relief claiming assets of only $1,000 and debts of almost $800,000. Most of the debts were accumulated as a result of her defense of the criminal charges. A hearing this week in bankruptcy court revolved around two defamation suits that were filed against Anthony in state court by the babysitter and the meter reader. Both are asking the bankruptcy judge to allow the cases to continue. At least one creditor is … [Read more...]

Oreck Corp., maker of the famous upright vacuum cleaners and other items, filed for protection under Chapter 11 of the United States Bankruptcy Code. Citing “deteriorating sales” and an inability to pay debts as this come due, the company had no choice but to file for bankruptcy protection. It is expected that the company will sell its assets through the bankruptcy after reorganize debts and consolidating assets. Along with Oreck, eight of its affiliates also filed for bankruptcy protection. … [Read more...]

Lauryn Hill, award-winning singer, was sentenced to three months in prison for tax evasion this week. The singer failed to file tax returns from 2005 through 2007. She owed more than $1.8 million in taxes for those years. Even though Hill paid almost one million dollars in federal and state taxes prior to the sentencing, the judge decided to give her time in prison, and home arrest thereafter, rather than probation. For more details and to find out what Hill should have done about her … [Read more...]

In April, AppleIllinois, LLC filed for Chapter 11 bankruptcy relief due to dwindling business. As part of the bankruptcy, AppleIllinois will sell its franchise rights and assets through its bankruptcy. This will include selling restaurants. At this time, eight Chicago Applebee’s Restaurants are scheduled to close. AppleIllinois has notified the state of the impending layoffs as well as employees at each of its 33 restaurants. For more on this story you can read, “Applebee's to close 8 … [Read more...]

When you enter in a Chapter 13 bankruptcy, you propose a repayment plan to the court. The plan sets forth how you will repay creditors and provides other details of how you intend to reorganize your debts. Most Chapter 13 plans provide for payments over 60 months. During that time, you may experience circumstances that change your financial situation such as unemployment, a medical emergency or possibly a debt you forgot to include in your original filing. To find out how these changes can … [Read more...]

An appellate court judge ordered that a $9 million judgment be reinstated against video game developer, TimeGate, forcing it to file for bankruptcy relief. The creator of such games as “Section 8” and “Aliens: Colonial Marines” will sell its assets by way of a bankruptcy auction. Lenders are set to place the stalking horse (or lead) bid but this must be approved by the bankruptcy court. The lenders can be outbid at the bankruptcy auction. For more read, “Videogame Developer TimeGate Files … [Read more...]

A representative for the company that purchased the rights to Twinkies and Ho Ho’s from bankruptcy Hostess Brands had said that it did not expect to be involved with the union when reopening four plants. The union’s strike was the force behind Hostess entering bankruptcy to liquidate. However, the president of the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union has made it clear that they expect the new company to adhere to federal law regarding union workers when … [Read more...]

Because of the government sequester, the Internal Revenue Service will loose approximately $600 million from its budget this year. This means that almost 100,000 IRS employees will be forced to be furloughed for up to a week. Because IRS employees will be working fewer hours, taxpayers will face delays in getting tax help when they contact the IRS. However, this also means that there will be fewer tax audits because of the furloughs. For more information read, “Spending cut bright spot: … [Read more...]