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PowerWave, the wireless carrier responsible for installing the wireless infrastructure in Washington’s underground metro, asked a bankruptcy judge for permission to drop the Washington metro project because it was not profitable to the company.  Other wireless carriers have stepped in to request that the bankruptcy court allow them to finish the project alleging that PowerWave’s actions are a risk to public safety.  In court papers, wireless carriers allege that PowerWave instructed a contractor … [Read more...]

Last week, Detroit was declared to be in financial crisis by a state-appointed panel of experts.  The governor of Michigan is expected to appoint a financial manager to assume the city’s functions based on the findings of the panel of experts.  City officials oppose the financial manager, as the plan would result in a loss of power on that level.  Filing for bankruptcy relief under Chapter 9 of the Bankruptcy Code may be an option for Detroit; however, there would be disadvantages to the city … [Read more...]

The bankruptcy code does not change as often as some other types of laws; however, there was a major change to the Bankruptcy Code in 2005.  Smaller changes in local rules take place often but the Bankruptcy Code affects all consumers because that is federal law.  Major changes in the Bankruptcy Code included the addition of a means test, credit counseling and mandatory consumer financial management courses.  Some protections offered by the bankruptcy stay were eliminated with the changes to the … [Read more...]

Rhythm & Hues, which filed for Chapter 11 bankruptcy relief earlier this month, has said that it is unable to finish its project for the film ‘Seventh Son’ that was due this past December.  In order to keep the company working on the project, the film’s producer has offered to extend the bankrupt company $4.9 million in credit so that the artists working on the project can finish almost 200 shots that still need to be created under the contract. To read the complete story see, “Rhythm … [Read more...]

In the wake of the horrific murders at Sandy Hook, one lawmaker has proposed a tax designed to help develop and disseminate educational material to educate the public about video game addition and antisocial behavior. The 10% sales tax would be added to video games that contain an “M” rating. The “M” rating is assigned by the ESRB and means that the content in the video game is intended for mature audiences only. For more you can read, “Newtown Lawmaker Proposes 'Sin Tax' On Violent Video … [Read more...]

Most people worry about what they will lose if they file bankruptcy. Questions like, “Can I keep my home if I file bankruptcy?” and “Will I lose my car if I file bankruptcy?” are common when debtors consider filing for bankruptcy protection. However, these questions cannot be answered with a simple “yes” or “no” because there are several factors to consider before an attorney can answer these questions. To read more about what elements are used to answer these questions see “Can I Keep My … [Read more...]

Just a day after accepting an award for its work on “Life of Pi,” Rhythm & Hues announced that it has filed for relief under Chapter 11. An India based company, Prime Focus, was set to buy Rhythm & Hues and the plan was to hold on until the sale could be finalized, thanks to a $20 million loan by three other studios. However, when the sell fell through, Rhythm & Hues had no choice but to file for bankruptcy relief. For more about the bankruptcy filing and the financial … [Read more...]

Some think that filing bankruptcy automatically wipes their credit report clean so that when the bankruptcy has ended, they will have nothing negative remaining on their credit report. However, while bankruptcy may discharge the underlying debt, there is nothing to force the creditor to remove past late payments and negative information from the credit report. The bankruptcy simply discharges the debts and prevents the creditor from attempting collection on that debt. For tips on how to … [Read more...]

Retailers may not add “checkout” fees for credit card users in 40 states within the United States. These “checkout fees” can be up to four percent of the purchase price for goods and services. While seven states have ruled the credit card fees to be illegal, forty of the states are allowing retailers the discretion of adding this fee to the total bill. The fee must be disclosed to the consumer. The fee is a result of an anti-trust settlement. For the rest of the story see, “Retailers may … [Read more...]

The law firm Dewey & LeBoeuf filed for Chapter 11 protection last May within weeks of a class action lawsuit was filed by 450 former employees. A former employee brought the class action lawsuit for herself and other employees alleging they were terminated with the required notice under the Worker Adjustment and Retraining Notification Act (WARN). Dewey sought to dismiss the action; however, Bankruptcy Judge Glenn ruled that the suit could proceed to a hearing. For the full story see, … [Read more...]