July 2010 Archives

New York Yankees star Alex Rodriguez, who used to play for the now-bankrupt Texas Rangers team, objects to his former team's bankruptcy plan because he wants guarantees that he'll be paid the $24.9 million owed to him, USA Today reported. He was traded to the Yankees after the 2003 season but the Rangers still owe a portion of his massive contract.

Love him or hate him, A-Rod is just another creditor in the eyes of the bankruptcy court, as Atlanta bankruptcy lawyers also would remind us. He's actually the largest creditor in the team's bankruptcy proceedings.

The slugger's legal team filed an objection to the Texas Rangers' bankruptcy plan earlier this week because it doesn't specify whether or not the new owner (to be determined) must make good on the team's contractual obligations.

The push for locally grown foods is rooted in environmental concerns, particularly with respect to energy used for shipping. But the state's economy also stands to benefit tremendously from local food production, according to research from the University of Georgia's College of Agricultural and Environmental Sciences Center for Agribusiness and Economic Development, the Gainesville Times reported.

At least indirectly, according to the research, a greater reliance on local fruits and vegetables might help reduce the need for Georgia bankruptcy lawyers.

Consumer finance information site Bankrate provides various articles and documents to help consumers who are struggling to make ends meet, including a recent answer to a consumer's question about how to put one's best foot forward with potential creditors after bankruptcy.

The individual who submitted the question said she had "really good credit" for 20 years before things went south and she was forced into bankruptcy. While she was able to hold onto her home and her car, both show up as "discharged" in her credit report.

The ongoing, off-screen drama of "Real Housewives of New Jersey" cast member Teresa Giudice's Chapter 7 bankruptcy filing just got a little more dramatic. New York Daily News reports that the reality star and husband Joe Giudice plan to sell the contents of their 10,000-square-foot mansion on August 22.

Some of the goods up for auction include a grand piano, two flat screen televisions, a "decorative urn," four chandeliers, framed paintings, several pieces of high-end furniture, a jet boat, an antique pool table and a full suit of armor.

Identity theft is one of the more highly publicized ways a criminal can invade another's financial life and, if left unchecked, lead its victim to the office of an Atlanta bankruptcy lawyer. But while financial institutions and lenders are generally savvy about investigating identity theft, another type of high-tech fraud is much harder to prove.

Specifically, the crime known as "ATM skimming" -- where criminals steal an unsuspecting user's PIN and account number -- is extremely difficult to detect, according to a Bankrate article published by Yahoo Finance. 

Robert Vamosi, an analyst specializing in risk, fraud and security at Javelin Strategy & Research, said ATM skimming is on the rise and expected to increase again next year. His firm estimates that losses from the crime are nearing $1 billion.

Not too long ago, credit cards were more freely issued, credit limits were sky-high and perhaps too many people believed they would be in better financial shape in the not-so-distant future. How times have changed, as consumers deal with clamped-down credit limits and worsening economic conditions.

Unless you've already gone down the path that leads to the office of a bankruptcy attorney in Atlanta, it's never too late to pull back the reigns and eliminate credit card debt.

But while it can be a daunting task just knowing where to begin, an article in Forbes explores the proper way to get started.

Bankruptcy Judge D. Michael Lynn made no secret that he's a big fan of his hometown baseball team, as reported by The Wall Street Journal's Bankruptcy Beat blog. Although the Texas Rangers are in first place in their division, the judge handed down a hefty order to manager Ron Washington:

"I've directed that you win the pennant and the world championship."

And the world championship? Winning the pennant by knocking out the New York Yankees, the team that took the expensive star Alex Rodriguez off its payroll will prove to be the biggest challenge. But it would be the ultimate irony, since Alex Rodriquez's jumbo salary was a major contributor to the Rangers' financial woes.

Often the same families struggling to hold avoid foreclosure or a short sale also have considered calling Georgia bankruptcy lawyers for help with their other debts. So families struggling with such issues usually need all the help they can get.

That's why it was encouraging to read in The Dalton Daily Citizen that more than 100 families from all over Georgia attended the Home Rescue Fair at the Northwest Georgia Trade and Convention Center two weekends ago. The free event was planned and sponsored by the Dalton-Whitfield Community Development Corporation (DWCDC).

Additional sponsors included the Alliance for Stabilizing Our Communities, National Council of La Raza and the National Coalition for Asian Pacific American Community Development. Classes held at the fair were offered in both English and Spanish.

A company that helped fulfill a South Florida father's "dying wish" for a new home in conjunction with a home makeover reality television show has filed for Chapter 7 bankruptcy, according to the Wall Street Journal's Bankruptcy Beat blog. Majestic Custom Homes, based in West Palm Beach, filed its petition under the name JPG Enterprises Inc.

Atlanta bankruptcy lawyers would tell you that Chapter 7 bankruptcy involves a complete liquidation of all assets, unlike the fresh start for a business afforded by a Chapter 11 filing. In other words, this marks the end of the road for Majestic.

The unemployment rate for the greater metropolitan Atlanta area spiked to 10.3 percent in June, up one-half percent from May's 9.8 percent, according to the Atlanta Journal-Constitution's Biz Beat blog. Georgia's labor department was cited as the source of the figures, released at the same time the US Dept. of Labor released national figures.

And discouraging words from Federal Reserve Bank Chairman Ben Bernanke, who according to Reuters predicts several more years of anemic job growth, signal the likely sustained demand for Georgia bankruptcy lawyers:

"I absolutely agree that unemployment is the most important problem that we have right now."

Cozumel Caribe SA, a Mexican company providing tourism services to a beachfront Cozumel hotel, filed for Chapter 15 bankruptcy protection earlier this week, The Wall Street Journal's Bankruptcy Beat blog reported.

What is Chapter 15, you ask? Atlanta bankruptcy lawyers could provide more details, but the US Courts Web site says the fairly new bankruptcy chapter is for the relief of insolvent companies where the various parties are in more than one country.

A heavily edited version of a video from a speech given by US Dept. of Agriculture employee Shirley Sherrod to the NAACP was distributed among so-called Tea Party activists as evidence of racism, as reported by CBS News and elsewhere. Fox News and other conservative news outlets took the edited video at face value and she was ultimately forced to resign.  

But the unedited tape provides much-needed context that casts doubt on allegations that she discriminated against white Georgian farmers. Now the USDA is reconsidering her ouster.

Also, the wife of a white Georgia farmer told Atlanta Journal-Constitution reporters that she considers Shirley Sherrod "a friend for life" after helping her family avoid the need for a Georgia bankruptcy lawyer:

"[She] kept us out of bankruptcy."

Mid-summer in the southwestern United States can be downright brutal, with high humidity and temperatures pushing triple-digits. While the advent of air conditioning ultimately expanded the region's population, the Atlanta Journal-Constitution reported that cash-strapped Georgia households are beginning to tolerate more heat to save money.

You might be met with a few chuckles if you asked an Atlanta bankruptcy lawyer whether any of their clients cited AC costs as the tipping point for financial insolvency. But the real cost of AC is no laughing matter for many struggling families.

"The Donald" hopes the emergence from bankruptcy of three Trump casinos in Atlantic City, the third Chapter 11 filing for Trump Entertainment Resorts according to the Associated Press, will turn up aces. 

Despite the recession's stranglehold on the economy, which Atlanta bankruptcy lawyers probably would say is not conducive to the gambling lifestyle, the Trump casinos were able to make $1.3 billion worth of debt vanish. 

Seattle real estate tycoon Michael Mastro recently vacationed throughout Western Europe; took ski trips to Switzerland and Jackson Hole, Wyo.; enjoys $2,900 dinners at the upscale Seattle restaurant Canlis and still drives around in his $8,000-a-month Rolls-Royce, according to The Wall Street Journal.

So other than flaunting his apparent wealth in a time of general austerity, who cares?

Bankruptcy filings aren't always exciting; usually papers are filed in federal court, assets and liabilities are recorded, creditors fight over the scraps and the debtor gets a new lease on life. 

But leave it up to Teresa Giudice, a cast member of "The Real Housewives of New Jersey," to spice things up. She and her husband's Chapter 7 bankruptcy proceedings are giving the outrageous Bravo television show a run for its money, The Wall Street Journal reported.

Trustee John Sywilok, whose job is to gather and distribute the free-spending couple's stuff to their creditors, filed a lawsuit against them for allegedly hiding assets. FindLaw explains that Chapter 7 bankruptcy protection, in which nearly all assets are liquidated, typically is reserved for people of very little means. 

Disgraced former Atlanta Falcons quarterback and federally convicted dogfighter Michael Vick is still in the dog house with respect to his $20 million bankruptcy, according to the Philadelphia Inquirer. 

A complaint filed recently in US Bankruptcy Court in Virginia by his trustee, Joseph Luzinski, seeks an estimated $2 million for expensive gifts given to friends and family before he went to prison in November 2007. Gifts include boats, jewelry and a Lincoln Navigator SUV.

Michael Vick's bankruptcy attorney, Paul Campsen, called the complaint "a garden variety attempt to collect money." Personal opinions about the football player's sense of ethics aside, it would be interesting to hear what Atlanta bankruptcy lawyers thought about the claims.

In the wake of a spike in consumer complaints against third-party debt collection services, the Federal Trade Commission has recommended that states change laws and arbitration rules to empower consumers, according to the Dow Jones Newswire (published by The Wall Street Journal).

Consumers overwhelmed by debt and the tactics of debt collection agencies often accept default judgments rather than defend against the charges. If a collection agency is using the law to go after your assets, fight back with the help of a bankruptcy attorney in Atlanta. 

No one who's falling behind on their credit card or home loan debt would knowingly "friend" a debt collector on Facebook, but a National Public Radio article reported that debt collectors are becoming increasingly savvy with Facebook and other social networking sites.

Credit collection attorney Gary Nitzkin, who uses social media in his own collection agency, said people tend to put way too much information about themselves on their social network pages. Debt collectors on Facebook often solicit debtors to "friend" them, which allows them to see conversations with other friends and glean valuable details:

"Are they going boating today -- on their new sailboat? Well, guess what? We just found an asset that we can take."

The increasingly messy Chapter 11 bankruptcy of Major League Baseball team the Texas Rangers suffered another setback when the presiding judge pushed back the date of the team auction to Aug. 4, The Dallas Morning News reported. US Bankruptcy Judge Michael Lynn jokingly said he wanted to make each side equally displeased:

"We're going to get this process on the road. I know this doesn't make all of us happy. But if that's so, I've done something right in this case."

There is plenty of unhappiness to go around, but club president Nolan Ryan and attorney Chuck Greenberg eased off their earlier tough stance in regard to a breach-of-contract filed against the current owners. Nolan Ryan, a former fastball-hurling pitcher, and Chuck Greenberg are in partnership to purchase the team.

One might think that a drop in airplane passenger volume, rising fuel prices and tepid consumer spending would prompt the executives of Hartsfield-Jackson International Airport to seek the advice of an Atlanta bankruptcy lawyer.

But according to an Atlanta Journal-Constitution article stating that the airport actually generates about $32.6 billion in direct business revenue in the city, the facility is doing quite well. To put that in context, it's a nearly 40 percent increase over the past four years despite a drop in passenger volume.

Struggling Atlantans are doing everything they can to hold onto their homes and/or avoid bankruptcy, while some Georgia bankruptcy lawyers may even suggest their clients file for Chapter 13 bankruptcy in order to keep their homes. However, different individuals have different situations that warrant different remedies.

But while it's hard to feel too sorry for banks these days, The Wall Street Journal's Bankruptcy Beat blog wrote about how now even some lenders are walking away from properties that are nearly worthless.

That means we might start to see a surging surplus of abandoned homes, ignored by the banks that own (or once owned) them, as families struggle to afford rental housing.

For belt-tightening Atlanta residents who'd rather not call an Atlanta bankruptcy lawyer, news that the annual tax free holiday is off the table this year certainly is disappointing, as discussed by the Atlanta Journal-Constitution's Atlanta Bargain Hunter blog. 

The sales-tax free weekend began in 2002 as a way to spur sales and also help Georgia consumers save some cash. But the tax free holiday, which must be approved by state lawmakers annually, was not approved because it was decided that the state couldn't afford the $12 million in lost revenue.

Georgia's state budget is now facing an estimated $2 billion shortfall.

Often a Chapter 11 bankruptcy filing is a sign that a business is about to wind down, or at best will be sold for parts or bought out by new ownership. But the emergence from Chapter 11 by Tucson-based SARS Auto Transporters, as detailed by the Arizona Star, represents a rare success story.

So Atlanta business owners facing the prospect of working with Georgia bankruptcy lawyers should take heart that sometimes the process actually helps the organization prepare for future success.

An article in the Atlanta Journal-Constitution illustrates how one financial setback can trigger a chain reaction that, if unchecked, can lead straight to bankruptcy. Marietta resident Helen Burgess fell behind on her bills after her cancer diagnosis and accompanying medical fees took a substantial bite out of her finances.

She was able to make arrangements for her mortgage, car loan, credit card balance and even her tax bill; but her condominium's Home Owner Association (HOA) made no such concessions. Helen Burgess had to have surgery for her cancer and was late on her HOA payment, leaving her cut off from water service right after her return from the hospital last year.

Now she said she fills containers with water from her niece's home 10 miles away.

Capmark Bank has taken over ownership of Roswell-based Horseshoe Bend Country Club after a courthouse auction was unable to raise the multimillion-dollar asking price, the Atlanta Journal-Constitution reported.

The club had petitioned for a Chapter 11 bankruptcy filing but a U.S. bankruptcy judge in Atlanta dismissed the filing just a few hours before the expected auction. The club became insolvent and was pushed toward bankruptcy due to nonpayment on an $8.3 million loan.

As MSNBC reported five years ago, Oklahoma-based space tourism venture Rocketplane Ltd. had a charted a course to put paying civilians on suborbital space trips by early 2007. That never materialized, of course, but now MSNBC has reported that Rocketplane has filed for Chapter 7 bankruptcy protection.

As a bankruptcy attorney in Atlanta would explain, Chapter 7 involves the liquidation of assets and spells the end of the ambitious space travel company's journey.

For a growing number of Georgia residents who simply cannot find a decent job, the failure of Congress to pass a federal extension of unemployment insurance benefits may trigger the need to contact an Atlanta bankruptcy lawyer.

Members of Congress just returned from their recess yesterday and are expected to take up the issue. But while 1.7 million jobless Americans lost their benefits when lawmakers failed to pass the extension, Republicans and Democrats are pointing fingers at one another, as discussed in a Michigan Live article.

This blog has already written extensively about scams and shady organizations promising to help desperate consumers get out of debt. But, as an MSNBC article explores, it's a growing problem and the abuses by unscrupulous "debt counselors" must be exposed.

Get educated about credit consolidation and counseling scams at FindLaw or consult a bankruptcy attorney in Atlanta for legal advice.

Not all for-profit debt consolidation companies are shady but a growing number of them are; and even many of the so-called not-for-profit debt counseling services are not to be trusted. Susan Grant, director of consumer protection at the Consumer Federation of America, puts it this way:

"Desperate consumers are paying thousands of dollars with no guarantee that even one penny of their debts will ever be settled."

Anyone who has fallen behind on their student loan payments may take comfort in learning about how debt collectors operate, or at least the rules to which they are expected to follow. But according to a U.S. News & World Report article, the Dept. of Education has removed its debt collection procedures from public view.

While Atlanta bankruptcy lawyers could probably fill in the blanks for consumers, the move has drawn the ire of consumer rights and government transparency advocates.

The rules apply to collection agencies hired by the federal government to collect from those who default on federal student loans. The department claims it is reviewing the rules and that once it is complete, "we will re-post all appropriate information."

It's a small contest in the context of Georgia state politics; but the race for the office of Cobb County Commission chair shows how bankruptcy can be used to taint someone's image, as reported by the Marietta Daily Journal.  

Nonpartisan candidates Tim Lee and Larry Savage are facing off in a July 20 special election in the Atlanta suburb to replace Sam Olens, who stepped down to run for state attorney general. Newcomer Larry Savage said he intends to use Tim Lee's 1995 personal bankruptcy filing on the campaign trail.

The Wall Street Journal reported that baseball hat maker New Era Cap Inc. is owed more than $106,000 by Major League Baseball's Texas Rangers team, which is currently in bankruptcy. While Braves fans probably aren't too interested in the financial health of the American League team, Atlanta bankruptcy lawyers likely are paying close attention. 

Revelations that the Rangers franchise is six figures behind on payments to New Era came after the team's plan to sell itself in bankruptcy court included a proposal to have its past due bill to the hat maker forgiven.

While the Rangers now are seeking to assign their contract with New Era to the eventual new owners of the team, officials claim nothing was owed to New Era when they filed for Chapter 11 bankruptcy protection in late May.

Since credit card debt often is the main driver of insurmountable debt leading to bankruptcy, along with unexpected medical bills and job loss, applying for another credit after emerging from personal bankruptcy might seem like a bad idea.

And if not done carefully, it certainly could ruin your chance for a financial rebound. Your Atlanta bankruptcy lawyer might have some suggestions, but Bankrate.com provides some pointers on its Web site to help you determine whether you're ready for a new charge card.

While most childcare centers and preschools have razor-thin margins even in good times, most of them tend to do just fine when jobs are plentiful and parents have both the need and the income for child care.

But the "Great Recession" and the continuing stagnation of job growth have resulted in the closure of 600 Georgia child care centers and more than 1,800 family day-care homes throughout Georgia, as reported by the Atlanta Journal-Constitution.   

The depressing statistics come from a new study by Quality Care for Children, which advocates to improve quality and access to child care services in Georgia. The 2009 child care closures cited by the study represent a 19 percent drop from 2008, according to the organization's CEO, Pam Tatum.

While most of the focus has been placed on whether or not BP ultimately will be forced into bankruptcy protection, the arguably more sober issue is the wave of Gulf Coast business bankruptcies expected by restructuring experts, according to The Wall Street Journal. 

Georgia is not technically a Gulf Coast state; but it borders Florida and Alabama and likely does a fair amount of business with those states. Therefore, Georgia bankruptcy lawyers likely are watching developments in those neighboring Gulf states.

While Chapter 11 bankruptcy filings by corporations and small businesses tend to grab the headlines, The Wall Street Journal reported that consumer bankruptcy filings through the first half of 2010 are at their highest level since 2005.

It's important to point out that the Bankruptcy Abuse Prevention and Consumer Protection Act was enacted in 2005 to curb the disturbing increase in consumer bankruptcy filings. But it appears that this recession has been so tough on consumers that even that law, which makes it more difficult to file, can only do so much.

Check out FindLaw's succinct explanation of how the 2005 bankruptcy law changed how individuals can file for Chapter 7 or Chapter 13 protection, or speak with a bankruptcy attorney in Atlanta for more details.

Insurmountable credit card debt may be one of the main reasons consumers file for bankruptcy protection; but a new study reported by The Wall Street Journal's Market Watch suggests that the new credit card law don't stop card issuers from enacting "gotcha" tactics.

Debt counselors and Atlanta bankruptcy lawyers can better help you understand the complexities. But so-called penalty interest rate policies remain difficult to fully comprehend, according to the study by Evolution Finance Inc., which publishes consumer information site CardHub.com.

The study gave six out of the top 10 credit card issuers failing grades for their penalty rate policies for existing transactions, policies which were supposed to have been reworked in the wake of last year's credit card act.

Stories about well-paid professional athletes blowing their fortunes after retirement are a dime a dozen. So it's somewhat unusual to hear about the Chapter 11 bankruptcy filing of New Orleans Saints backup quarterback Mark Brunell, as reported by the Bleacher Report.

Personal business loan guarantees ultimately led to his bankruptcy, according to an article in The Wall Street Journal's bankruptcy blog. One of Mark Brunell's largest debts is a loan guarantee to JBW Owner LLC in excess of $5 million; JBW is was involved in real estate transactions, as was his now-defunct real estate venture Champion LLC.  

His listed debt load of $24.7 million overshadows reported assets of $5.5 million. 

In a sign of better times ahead, Georgia's ports are reporting a stellar year so far, according to the Atlanta Journal Constitution. The hope is that as warehouses and distribution centers add workers, retailers stock shelves and shoppers buy more goods, the state's overall economy will show marked improvement.

Perhaps we'll know for sure when Atlanta bankruptcy lawyers begin to have more time for vacation. But Curtis Foltz, executive director of the Georgia Ports Authority, is encouraged by what is shaping up to be a record year:

"I don't want to claim the recession is over throughout the U.S. But it's pretty remarkable that we've fully recovered the loss of volume at our ports."

Martin Cadillac LLC, an Englewood Cliffs, New Jersey dealership that counted hip-hop stars Jay-Z and Sean "Diddy" Combs among its more well-heeled customers, has filed for Chapter 11 bankruptcy protection, the North Jersey Record reported.

And while the recession may not have hampered Jay-Z and Diddy as much as the rest of us, the patronage of two music stars was not enough to keep the company going. Like countless other car dealerships, Martin Cadillac claims its operations also were hindered by the credit crisis.

But it doesn't take the wisdom of an Atlanta bankruptcy lawyer to know that a business with substantially more liabilities than assets can't operate indefinitely.

Vincent John Cusano, better known to fans as Vinnie Vincent, KISS ex-guitarist lost his 6th Circuit appeal from an order denying his filing for Chapter 13 bankruptcy protection from money owed to his former band mates, according to Courthouse News Service.

Anyone who is denied bankruptcy protection may appeal their case, as Georgia bankruptcy lawyers would tell you. But for someone lacking in financial resources, it's often too costly an endeavor.

Vincent Cusano unsuccessfully sued for royalties in 1997 and appealed the unfavorable decision in the 9th Circuit in 2001 (copy of the decision posted at KISSFAQ.com). Then he tried to seek Chapter 13 bankruptcy protection from paying more than $81,000 owed to his former band mates.

Often the next move after losing one's home to foreclosure, especially for those who are unemployed or no longer collecting jobless benefits is to consult with Georgia bankruptcy lawyers. In fact, it's a good idea to do so even if you think you'll be able to avoid a filing.

And even though pundits and TV news anchors now say the national economy is emerging from the ashes of recession, homeowners in the Peach State are still losing their homes.

Gaile Jennings, of the Dalton-Whitfield Community Development Corp., told Dalton Daily Citizen reporters that her northwestern Georgia community is experiencing quite the opposite of what newspapers tell us is an economic recovery:

"It might be in other places; but when we had our Home Rescue Fair here last September, at that time, one in seven households in Georgia were behind on their mortgage. Well, now it's one in six."