Attorney Blog

You Won't Believe Who is Saying 'Don't File by Yourself!

questions@castlelaw.net (Blog Author)35703 — Fri, 23 Jul 2010 08:00:00 EST

Nearly 1,200 state trial judges around the country were surveyed recently. The result serves as strong words of warning to the public. As many of us have noticed or experienced first-hand, the current economic crisis has led to increased foreclosures, mortgage crises, and many other debt-related issues. Well now, more and more people have taken to representing themselves not only in foreclosure matters and other mortgage-related issues, but also in domestic cases and other consumer issues. The survey results show that this just might be one service you should think twice about before cutting.

According to 62% of the judges surveyed, self-representation often means a poor outcome in a filing. This survey hits hard on an issue that I have been talking about for years: Filing Missouri or Illinois bankruptcy on your own is no easy task.

Sure, maybe you can do it by yourself, but look at the evidence before setting out on your own. In many cases, self-representation in bankruptcy can lead to a quick dismissal of your case or result in an undesirable outcome to say the least. The people mentioned in the survey probably didn’t save any money and certainly didn’t save any time by representing themselves. If you are struggling with this decision, make sure you fully research all of your options and think about what risks you are willing to take. You can start with a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Can I Get in Trouble for Hiding from the Repo Man?

questions@castlelaw.net (Blog Author)35701 — Fri, 23 Jul 2010 08:00:00 EST

In most instances, the repo man has a right to take your car if you have defaulted on the loan. Hiding from the repo man is definitely not a permanent solution. After all, he is going to take the car once he sees it. If you don’t let him see it, then I suppose he can’t take it, but how long can you stay on the run?

Plus, if you are hiding from the repo man, you’ve got a lot more to worry about than him.

Late payments turn into missed payments, and before you know it, you are picking and choosing which debts to pay that month. If you’ve fallen far enough behind on your car that you are fearing repossession, then chances are you are already in too deep. It’s time to look at the bigger picture.

At first, your car was in danger. Now, your wages are being garnished, you need protection from foreclosure, and your creditors are always the ones on the other end of the phone. You don’t just need help hiding from the repo man. You need help hiding from your life.

Fortunately, a St. Louis bankruptcy attorney can help you stop debt from taking over your life. A Chapter 7 bankruptcy in Missouri or Illinois will help you stop wage garnishments, stop creditors from calling, give you credit card debt help, and get you back on your feet. To learn more, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Don't Let Unpaid Back Taxes Stop You From Choosing Bankruptcy

questions@castlelaw.net (Blog Author)35613 — Thu, 22 Jul 2010 08:00:00 EST

Some debtors are concerned that years of unpaid taxes will have to be dealt with if they decide to file for bankruptcy and start a new financial life. While some newer taxes may have to be paid, taxes older than three years can often be discharged. Making sure that your taxes are properly analyzed and dealt with prior to filing to bankruptcy is a major reason that you need an experienced and knowledgeable Missouri bankruptcy attorney to guide you through the process.

Owing money to the federal government and the Missouri government is a very different matter than owing money to other creditors. While some of these debts can be dealt with and discharged, it is very important to have an attorney who understands bankruptcy law and the specific requirements for discharging back taxes. Want to learn more? Call us today to learn more about your best options for tackling your debt.

Can I Keep my Motorcycle in a Missouri or Illinois Chapter 7 Bankruptcy?

questions@castlelaw.net (Blog Author)35530 — Wed, 21 Jul 2010 08:00:00 EST

When you hire a St. Louis bankruptcy attorney, his or her primary responsibility should be to protect the property you want to keep. I’ve recently become a motorcycle owner, and I can see why it is so important for people to keep their motorcycle! A motorcycle isn’t like any other vehicle—it is a way of life.

There are, however, some tough decisions that many people are forced to make when in debt. If you are thinking about an Illinois or Missouri Chapter 7, you may be able to keep your motorcycle by reaffirming the debt owed against it, but only after you’ve showed the court—and yourself—that this particular loan payment will not create an undue hardship. What do I mean by that?

Ask yourself: Can I really afford this motorcycle payment or will the loan payment put me right back in the same spot I was before filing? The court likely will ask you the same question. If you are honest with yourself, you can probably guess what the court will decide.

Living in debt is not easy. We must make tough choices to get out of debt. But, in the end those choices just may be what take us closer to the life we envisioned for ourselves. However, there is no need to assume you will lose everything you own or that is important to you if you file a Missouri or Illinois Chapter 7 bankruptcy. This is simply not the case for many people.

To learn more about Missouri or Illinois bankruptcy and how it can help you, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

My Wages Are Being Garnished for Child Support. What Can I Do?

questions@castlelaw.net (Blog Author)35277 — Fri, 16 Jul 2010 08:00:00 EST

If your wages are being garnished for past due child support, you probably feel like your financial situation is completely out of your control. Since child support agencies can take 50-65% of your paycheck, you are not left with much to work with.

When it comes to child support, the bottom line is this: It must be paid. There is no easy way out of your child support, but there is a way to catch up your payments and get the garnishment off your paycheck. A Missouri or Illinois Chapter 13 bankruptcy can stop your wage garnishment, allow you to wrap your back child support payments into a repayment plan, and help you get back on your feet.

Child support is considered family support and it is important you continue to pay on this obligation. Luckily, a St. Louis bankruptcy attorney can help you become current and continue to make your payments by helping you get a handle on the rest of your debt.

The best move to make now is to learn about your options. Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn how much bankruptcy can really do for you.

I've Fallen behind on Credit Cards. What Do I Do Now?

questions@castlelaw.net (Blog Author)35275 — Fri, 16 Jul 2010 08:00:00 EST

Looking back, it seems so easy to fall behind on bills. A late payment here and there turns into missed payments, and before you know it, you have to choose which bills to pay on any given month. Prioritizing your debt isn’t easy. There are consequences to not paying any one of your creditors. If you quit paying your utilities, service is shut off. If you stop paying your mortgage, the bank can move to foreclose. But what about credit cards?

Like any other debt, not paying on your credit cards puts you at risk. Let’s face it, just like any other creditor, this creditor will take action too. They can get a judgment against you, and subsequently, garnish your wages, go after the money in your bank accounts, and even create obtain a lien against your property. So, what can you do to stop it?

You could try to catch up, but it is likely that you would not be in this position now if you had the cash to catch up in the first place. For many, the best solution to credit card debt is to file a Chapter 7 bankruptcy in Missouri or Illinois. It eliminates debt, helps you turn your credit around and gets you back on your feet in as little as 90 days!

To learn more about what Illinois or Missouri Chapter 7 can do for you, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Will Filing Bankruptcy in Missouri Set Me Free?

questions@castlelaw.net (Blog Author)35274 — Fri, 16 Jul 2010 08:00:00 EST

You may be thinking about freedom with the recent celebration of our own country’s freedom. Being in debt can feel like a prison—and in some ways, it is. Creditors have control over your life. They’ve affected your personal health and happiness, not to mention the well-being of your family.

The truth is that a St. Louis bankruptcy attorney can only help you as much as you help yourself. You are the one with the power to set yourself free; Missouri and Illinois bankruptcy is simply a means of doing so.

Don’t get me wrong, bankruptcy is very powerful. It can provide you with protection from foreclosure, credit card debt help, and relief from your creditors, but it will only do so if you decide to let it. As I say, doing nothing changes nothing. You are the key to achieving freedom from your own debt.

If you’re wondering, “Should I file bankruptcy?” you are not alone. Often, the decision to call a St. Louis bankruptcy attorney and set up that first appointment is the hardest. But, there is light at the end of the tunnel and you deserve to move towards it. If you still are not sure you are ready to be free from debt, request a free copy of my Missouri and Illinois bankruptcy book “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” It may just be the first step to getting your freedom.

Calculating Chapter 13 Repayment in Missouri

questions@castlelaw.net (Blog Author)35267 — Fri, 16 Jul 2010 08:00:00 EST

Trying to figure out how much your Chapter 13 payment is going to be? It isn’t as black and white as it seems. After all, there are many factors that go into determining what your monthly plan payment must be, including what you must repay under law to get a discharge at the end of your case and your ability to repay your creditors. A few factors include:

1. The amount of disposable income you have at the end of the day (this is your monthly income less your necessary monthly expenses).
2. The amount of debt that must be repaid to allow you to keep the property you wish to keep.
3. Your ability to repay your unsecured creditors. This is determined by what is commonly called a means test, a test created under the 2005 Bankruptcy Amendments.
4. Any amounts that must be repaid if you have equity in any items that are above and beyond what the law allows you to protect or exempt under state law.

The plan can also vary as to length of time. A Chapter 13 bankruptcy can range between 3 to 5 years depending on certain requirements that must be met. Getting the right payment is all about making the right plan. And, making the right plan is much easier with the help of a St. Louis bankruptcy attorney.

I see the same mistakes being made over and over by debtors who want to file bankruptcy by themselves or with a cheap St. Louis bankruptcy attorney. Failing to file a plan that will be confirmed or failing to provide certain required documentation to your Trustee are deadly to a Chapter 13 bankruptcy case. To learn more about these mistakes and how to avoid them, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Filing Bankruptcy on Your Own vs. Filing with a St. Louis Bankruptcy Attorney

questions@castlelaw.net (Blog Author)35155 — Wed, 14 Jul 2010 08:00:00 EST

Deciding how to file bankruptcy is just as important as your decision to file for bankruptcy in the first place. Your decision to file on your own or with a St. Louis bankruptcy attorney will shape the outcome of your entire case.

Can you file Missouri or Illinois bankruptcy on your own? Sure! Would I recommend it? Absolutely not. I filed bankruptcy when I was in college and I knew I wasn’t prepared to do it on my own. Filing on your own, though it appears to be cheaper and quicker, is a long, hard road. You must be prepared to handle the court, the trustee, and the mountain of paperwork ahead of you, not to mention taking care of any obstacles that will inevitably pop up.

Is filing with a St. Louis bankruptcy attorney always the best decision? Only if you find one experienced and qualified enough to handle your case successfully. Take great care in choosing an attorney and you may find that that the process of filing is not that bad.

Don’t forget, making a mistake could end up costing you more money and time than if you had filed with a St. Louis bankruptcy attorney in the first place. If you are serious about getting protection from foreclosure, credit card debt help, and relief from creditors, get the right information to make an educated decision. You can start with my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Is There More to Being a Top St. Louis Bankruptcy Lawyer?

questions@castlelaw.net (Blog Author)35151 — Wed, 14 Jul 2010 08:00:00 EST

When many of us think of the top professionals in any industry, it is all about numbers. How many clients do they have? What is their success rate? While being an industry leader is certainly a good indication that you are great at what you do, there may be more to a top St. Louis bankruptcy lawyer than numbers.

There are many qualities a St. Louis bankruptcy attorney must possess in order to help their clients successfully navigate through the entire bankruptcy process. Your St. Louis attorney must be competent, efficient and experienced. More importantly, you'll want a St. Louis bankruptcy attorney who is concerned with how you feel throughout the entire process and makes sure that you are comfortable.

I can’t speak for any other Missouri or Illinois bankruptcy attorney, but I know I built the experience I provide for my clients around the experience I had filing bankruptcy myself. After getting way over my head in debt, I filed for bankruptcy while I was in college. The experience wasn’t as great as it could’ve been. But, my not-so-great experience with the bankruptcy process inspired me to move forward and become the best bankruptcy lawyer St. Louis has ever seen.

Now, looking back, I know that the experience I had is the reason I can provide great services to my clients. When you are looking at the top St. Louis bankruptcy lawyers, make sure you know that they have your experience in mind. You wouldn’t want to be just another number.

To learn more about choosing the best St. Louis bankruptcy attorney, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

One Way To Rebuild Credit After A Bankruptcy: Secured Credit Card

questions@castlelaw.net (Blog Author)35110 — Tue, 13 Jul 2010 08:00:00 EST

What is a good and safe way to rebuild credit after a bankruptcy?

While every family has different financial histories and may benefit from different strategies after emerging from bankruptcy, many people rebuilding their credit following bankruptcy by choosing a secured credit card. Secured credit cards allow you to rebuild your credit by using a card that takes from an amount of money that you deposit at a bank. When choosing a secured credit card, look carefully. While it is normal for credit union to charge an annual fee, you should try to avoid other charges, such as application fees and insurance policies.

Another credit option for those rebuilding bad credit is a traditional credit card marketed to those with a poor credit history. These can help you reestablish yourself, too, but be very wary of high interest rates and other fees. While it is important to reestablish credit after bankruptcy, it is also important not to cumulate debts that you can’t pay.

Should I Be Renting after a Chapter 7 Bankruptcy in Missouri or Illinois?

questions@castlelaw.net (Blog Author)34798 — Thu, 08 Jul 2010 08:00:00 EST

Renting after you have completed your Missouri or Illinois Chapter 7 bankruptcy can be a great idea! It can give you time to build your credit without the burden of taking on a loan.

Renting is sometimes looked down on after you’ve owned a house—but never underestimate the value of being free. You want to look out for a good lease agreement. Many people find that when they rent, it is the landlord who is responsible for many repairs. Also, it is much easier to look for a rental payment that is well within your budget to allow you to better focus on rebuilding your credit in small steps.

That isn’t to say that you can’t buy a house after a Chapter 7 bankruptcy, but you may find that it is easier to take a load of responsibility off your shoulders for a while. Being a homeowner is certainly an achievement, but there may be a time where the bad outweighs the good. Let’s face it: a house is a serious stressor. Without it, you are free.

To learn more about the freedom that Missouri or Illinois bankruptcy can give you, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Why Won't Every St. Louis Bankruptcy Attorney Tell Me the Price over the Phone?

questions@castlelaw.net (Blog Author)34797 — Thu, 08 Jul 2010 08:00:00 EST

Many people think that the cheapest option is the best option, but when it comes to hiring a St. Louis bankruptcy attorney you may want to think twice about deciding which attorney is right for you based solely on price. In fact, you should be wary of any attorney that is quick to quote you the cost of their services over the phone. Why?

Every financial situation is different. If a Missouri or Illinois bankruptcy lawyer gives you a quick quote over the phone, he or she is doing so with limited knowledge of your actual situation. Can he or she really give you an accurate price without knowing what your case will entail? Probably not.

The price that a St. Louis bankruptcy attorney would give you over the phone is most likely a starter price, which is a cheap price that potentially only covers up-front costs. Once you are in the door, you may be surprised to find hidden fees or additional payments. In the end, you could end up paying more just to find you are not getting the quality services that you expected. So, the best bankruptcy attorneys in St. Louis typically won’t give you a price over the phone.

So what should you be looking for when choosing a St. Louis bankruptcy attorney? Look for satisfied clients, good standing with the bar association, and a high success rate. To find out more ways to pick out the best attorney for your case, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

If I live in Illinois, can I file a Chapter 7 bankruptcy in Missouri?

questions@castlelaw.net (Blog Author)34468 — Thu, 01 Jul 2010 08:00:00 EST

I find that many people are confused as to whether they should file in Missouri or Illinois. If you live in Illinois, you may think that because we are so close, you work in Missouri, or you spend all your free time in Missouri that it would only be natural to file bankruptcy in Missouri.

However, if you live in Illinois, you probably cannot file a Chapter 13 or Chapter 7 in Missouri. The rule is this: you must file your bankruptcy case in the state in which you reside or where you’ve lived for the 180 days preceding your bankruptcy filing. What if you’ve moved? If that is the case, you need to look at where you lived for a majority of that 180 day time period.

Plus, should you really file somewhere other than where you live? Local rules and the state exemptions that you would use to protect your property are intended to benefit the residents of that particular state. It may not make sense for you to file in another state anyway.

The most important thing for you to do if you are unsure where to file is to find an experienced St. Louis bankruptcy attorney who understands both states and can help you make the most of your case, regardless of where you file.

If you want to learn more about filing in either state, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

If I live in Illinois, can I file a Chapter 7 bankruptcy in Missouri?

questions@castlelaw.net (Blog Author)34467 — Thu, 01 Jul 2010 08:00:00 EST

I Want to Know about Bankruptcy in Illinois!

questions@castlelaw.net (Blog Author)34464 — Thu, 01 Jul 2010 08:00:00 EST

No matter which way you slice it, finding information about Illinois bankruptcy on the internet just isn’t easy. You can’t find the information you need until maybe the tenth time you’ve searched, and then when you do find any morsel of information, you can’t be sure if it is accurate. Plus, the Chicago dominated internet-waves mean that most attorneys that pop up are nowhere near the residents of Southern Illinois.

So, are the rules the same in all parts of Illinois? For the most part, yes. However, there are local rules that differ from district to district that greatly impact how your case will move. In fact, bankruptcy law is Federal law so the Federal rules are the same for everyone, Missouri and Illinois included. It is the local rules that make the difference. For the basic information you need about Illinois bankruptcy, refer to my article I Want to Know about Bankruptcy in Missouri!

However, I know that if you need protection from foreclosure, credit card debt help, and relief from your creditors, you need it now. You can learn everything you need to know about Illinois bankruptcy (plus some) by reading my free Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Illinois Follows Missouri's Lead, Limits Payday Loan Industry

questions@castlelaw.net (Blog Author)34410 — Wed, 30 Jun 2010 08:00:00 EST

Illinois Governor Pat Quinn just signed a new law that limits the amount of interest that payday loan companies can charge. Previously, the entire Illinois payday loan industry had no limits on interest rates. Now, the new bill caps interest rates at 99% for loans up to $4,000 and attempts to prohibit abusive pre-payment penalties.

Illinois Attorney General, Lisa Madigan still warned consumers, saying, “Even with these new protections, these loans will still be costly and they should only be used in emergencies in a last resort.” To further regulation of the payday loan industry, payday loan information will be kept in a database and made available to pursue those agencies who do not follow the law.

Payday loans are no laughing matter. They are so dangerous, in fact, that they have caught the attention of both Illinois and Missouri state governments.

The truth is that there is no easy solution to debt. Though payday loans seem like a quick fix in a bind, they usually only serve to sink us farther into debt. . .and quickly. If you are in trouble with payday loans, help is available to you. A St. Louis bankruptcy attorney can help you eliminate your debt, payday loans included, and move forward with your life. Want to know more? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Mission Possible: Finding a Job after Bankruptcy

questions@castlelaw.net (Blog Author)34219 — Mon, 28 Jun 2010 08:00:00 EST

The lack of good news about the job market is pulling our already downtrodden spirits down even farther. For some reason, many people buy into the myths that Missouri or Illinois bankruptcy can make getting a job impossible. This is simply not accurate.

A potential employer may look at your credit score and see your bankruptcy filing. However, revealing a bankruptcy filing isn’t the end of the world. In fact, it shows that you made a decision to take responsibility for your financial situation, and you are doing what it takes to protect your family. You are starting down the road to success and it is this impression that you must show any potential employer.

So, how do you dispel the myths about bankruptcy when dealing with a potential employer? Honestly, keep it simple and quick. In the event that the subject of your bankruptcy is even raised, there is no need to dwell on the subject. You sought out a legal remedy that provides protection from foreclosure, credit card debt help, and relief from harassing creditors because that is what you needed to do to stay afloat. It didn’t affect your MS Word proficiency or your people skills. Hard times have fallen on everyone these days. After all, over 2 million people filed last year.

With so many people taking action to address their debt, there is a better understanding of Missouri and Illinois bankruptcy than there used to be. Want to learn more about how bankruptcy fits into your life? Request a free copy of my free Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

What Does My Credit Rating Mean?

questions@castlelaw.net (Blog Author)34030 — Thu, 24 Jun 2010 08:00:00 EST

Essentially, your credit rating is a measure of your creditworthiness and ability to repay debt. A credit rating is based on your financial history, payment records, debts and any past bankruptcy filings. Credit ratings range between 300 and 900, with a good credit score considered to be between 600 and 700.

The higher your credit score, the more interested a lender will be in lending you money and providing you with lower interest rates. Why? If your credit history shows good behavior, they have more confidence that you’ll pay them back.
Does that mean that a low credit score is the end of the world? No, it doesn’t. Most lenders make different types of products for different types of credit scores. It is a matter of taking the products you can, using them responsibly, improving your credit, and applying for better products in the future.

If you are in debt, your credit rating probably isn’t in good shape. However, a Missouri or Illinois bankruptcy may provide you with a fresh start. To learn more about what a St. Louis bankruptcy attorney can do for you, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

I Have New Creditors Bothering Me After My Discharge. Can They Do That?

questions@castlelaw.net (Blog Author)33912 — Tue, 22 Jun 2010 08:00:00 EST

The answer to this question depends on the type of debt your creditors are attempting to collect.
If you filed a Missouri or Illinois bankruptcy and received a discharge in your case, then any wiped out debt is uncollectable. Your creditors cannot attempt to collect in any way on a discharged debt, and if they attempt to do so, they are violating a court order – your discharge order.

However, you may have new creditors that are attempting to collect a new debt or creditors that are attempting to collect on a debt that was not eliminated in your bankruptcy case. Any debt that you’ve gotten into after you filed your case is fair game, and your creditors can attempt to collect on this debt. So if you are asking yourself, “why are creditors bothering me after discharge?” then you need to look at what debt you have incurred and when. A Missouri or Illinois bankruptcy provides individuals like yourself with huge benefits, but it does not protect you from creditors that are attempting to collect on a debt that you took out after filing.

A St. Louis bankruptcy attorney can help you navigate through the court rules and bankruptcy process so that you get your fresh start, but it is up to you to make the most of it. If you immediately fall into the same lifestyle patterns, you may once again find yourself in need of credit card debt help, harassing creditors or even protection from foreclosure.

The bottom line is this: If you incur debt in your life after bankruptcy, you could get yourself into more trouble.

Get the protection from foreclosure, credit card debt help, and relief from creditors that you need—and keep it. If you want to learn every way that bankruptcy can change your life, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

I Have New Creditors Bothering Me After My Discharge. Can They Do That?

questions@castlelaw.net (Blog Author)33911 — Tue, 22 Jun 2010 08:00:00 EST

Can I Get Information about My Spouse's Bankruptcy?

questions@castlelaw.net (Blog Author)33909 — Tue, 22 Jun 2010 08:00:00 EST

If you are married and thinking about filing bankruptcy, you may be deciding whether to file on your own or with your spouse. In some instances, one may be more beneficial than the other.

If you are thinking about separating or if you are the only one in debt and looking to get out of it, you may want to file separately. A joint filing may be better if most of your property is owned jointly or if both people are struggling with debt, whether it be separate or joint debt. If you choose to file separately, there are a few factors to consider. One of those factors is your right to privacy and confidential communication with your attorney. A St. Louis bankruptcy attorney cannot divulge certain information about one person’s bankruptcy and decisions with regard to that person’s debt—not even to their spouse.

While that may seem unfair, this restriction is important to preserve confidential communications between you and your St. Louis bankruptcy attorney.

Not sure if a joint or separate filing is right for you? Take advantage of a free consultation or order a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Five Chesterfield Area TGI Fridays Declare Bankruptcy

questions@castlelaw.net (Blog Author)33792 — Sun, 20 Jun 2010 08:00:00 EST

A company that owes five TGI Friday’s restaurants announced this week that they will file for Chapter 11 liquidation bankruptcy in order to deal with continuing problems with debt and creditors.

Tricorp management company, a Missouri company based in Chesterfield, filed for bankruptcy under the name BiState Bistro, LLC, in an attempt to keep the company’s money troubles from the public. At the same time, company president Steve Bell lead a meeting of TGI Friday’s employees where he explained the bankruptcy and what it would mean for those who worked for the organization.

Those on the inside told the St. Louis Globe-Democrat that the chain of five restaurants had been struggling since the beginning of the recession, when the franchise was told to remold their restaurants – a move they believed would increase revenue by 15 percent. However, consumers stopped eating out when the recession hit, landing a huge blow on TGI Friday’s bottom line.

Are Some Families Too Broke To Declare Bankruptcy?

questions@castlelaw.net (Blog Author)33791 — Sun, 20 Jun 2010 08:00:00 EST

As 2010 continues with large numbers of personal bankruptcies being tallied each month, many bankruptcy experts wonder if this won’t be a record year with over 2 million bankruptcy petitions around the country. However, experts also agree that many families who could probably benefit form bankruptcy haven’t filed yet.

In fact, some believe that some families are struggling so much financially that they can’t come up with the money to file for the bankruptcy that could help them get a fresh new start. While bankruptcy laws were changed in 2005 in order to make declaring bankruptcy more difficult, some lawmakers are arguing that bankruptcy should be available to the ones who need it most – the ones who may not be able to pay for the process.

Is bankruptcy the right choice for you and your family? The best way to find out is to read the bankruptcy articles on our website and talk with a local bankruptcy lawyer for more information.

What If I Just Give Up on my Debts?

questions@castlelaw.net (Blog Author)33658 — Thu, 17 Jun 2010 08:00:00 EST

Sometimes being in debt is so frustrating that we are ready to give up. It seems easier to just stick your head in the sand and ignore the growing consequences of your debt. However, if you think you are frustrated now, think about how you will feel when you stop making payments.

Creditors will stop at nothing to get payment on the debts owed to them. If you start racking up a substantial amount of debt without any effort to pay it back, your creditors will take action—and likely it won’t be pretty. Some of the most common tactics creditors use include:

•    Foreclosure
•    Repossession
•    Harassing phone calls
•    Wage garnishment
•    Levying of your bank accounts

If you want to avoid these things from happening to you, you can. A Missouri or Illinois Chapter 7 or Chapter 13 bankruptcy can stop creditor calls, wage garnishments, the rest and help you eliminate your debt safely (and legally!) To get more information about what bankruptcy can do for you, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets your creditors don’t want you to know.”

How Much Time Does a Chapter 7 Take in Missouri and Illinois?

questions@castlelaw.net (Blog Author)33657 — Thu, 17 Jun 2010 08:00:00 EST

From start to finish, an Illinois or Missouri Chapter 7 bankruptcy can take as little as 90 days. If you are thinking, “But James, 90 days? I can’t wait that long!” there may be two important points you are forgetting.

1.    It took you a while to get into debt. It would reasonably take you some time to get out. As you know, debt doesn’t normally happen overnight. Typically, it takes months or even years to accumulate large amounts of debt and that debt will follow you around indefinitely if you do not take action to eliminate it. A great St. Louis bankruptcy attorney will be realistic with you about the timeline of your Chapter 7 bankruptcy and make sure you know what to expect throughout the entire process.

2.    There are many benefits to filing a Illinois or Missouri Chapter 7 bankruptcy that you will notice immediately. As soon as you file your Chapter 7 bankruptcy case after retaining your St. Louis bankruptcy attorney, you should experience the following:
o    Creditor calls stop
o    Wage garnishments stop
o    Protection from your creditors

With such immediate benefits, 90 days doesn’t look so bad. After all, think about the amount of time you’ve spent suffering from debt? If you still are not sure an Illinois or Missouri Chapter 7 bankruptcy is right for you, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

What's Your Breaking Point for Debt?

questions@castlelaw.net (Blog Author)33569 — Wed, 16 Jun 2010 08:00:00 EST

The decision of when it is the right time to file for Missouri and Illinois bankruptcy is absolutely a personal choice. And, your decision of when to file probably has a lot to do with when you reach your personal breaking point. But how do you know what that is?

For me, a breaking point is when I realize that a situation isn’t going to get any better on its own. Doing nothing changes nothing—and, when it comes to debt, you must stand up and take action to address your debt head on if it is ever going to go away. Ask yourself this: Is your situation going to turn itself around on its own? Is your debt crises simply a temporary problem? The answer is probably no.

Remember, you only have to be in this situation for as long as you choose to be. There is help out there—and it is available to you at the click of a button http://www.castlelaw.net/contact.cfm or the dialing of a phone. A great St. Louis bankruptcy attorney is prepared to answer your call for help in many ways, including providing free information like my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

While you may not be sure you want to file bankruptcy, you can be sure that you want to get out of debt. The best move to make is to do your research and ensure that the decision that you make is an educated one.

Is It Dangerous to Get Rid of my Bankruptcy Attorney and Get a New One?

questions@castlelaw.net (Blog Author)33286 — Fri, 11 Jun 2010 08:00:00 EST

In short, yes. This isn’t to say that you can’t fire your current St. Louis bankruptcy attorney, but proceed with caution. You could run into several problems, including but not limited to:

•    Getting your case dismissed in the process of switching.
•    Hoping for, but not getting a different case result with your new attorney.
•    Ignoring tough yet necessary decisions in your case.

Bankruptcy fees are set by the court, and there are only so many fees that can be charged in a case. If you’ve already paid a bulk of the fees to one attorney, there may not be enough fees left to pay to a new attorney. This may cost you the quality of your case, leaving you in the exact same position you were in before or without an attorney at all.

Really, the best thing to do is to pick the best St. Louis bankruptcy attorney for your case from the start. Before choosing a Missouri or Illinois bankruptcy attorney, make sure the attorney is in good standing with the Missouri Bar Association, has a history of great case results, and has other satisfied clients that are willing to give testimonials. You can get a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out what else to look for in a great attorney.

If you’ve already decided on an attorney, but are now realizing it was the wrong decision, it isn’t necessarily too late. Read my article “Can I Fire My Missouri or Illinois Bankruptcy Lawyer?” to find out what you can do.

Is Your Livelihood on the Line with Missouri or Illinois Bankruptcy?

questions@castlelaw.net (Blog Author)33283 — Fri, 11 Jun 2010 08:00:00 EST

Your livelihood isn’t just defined by your job. It includes everything that is relevant or important to your way of life. Your family, personal health and well-being affect your livelihood. You may be wondering how bankruptcy can improve your livelihood and how a bankruptcy case can affect your job, health and well-being in a positive way. Let me point out a few ways in which bankruptcy can have a positive impact.

1.    Bankruptcy can save you from potential embarrassment at your job. Not only does a wage garnishment or creditor call keep you from living a normal life, it could let your employer know that you’ve gotten into trouble with debt. Filing for bankruptcy shows that you are taking action to move your life in a positive direction and solving your own problems.
2.    Freeing yourself from debt allows you to fully support your family. Family is a top priority for most. Just knowing that you can put food on the table, provide your family with protection from foreclosure, and shield your family from creditor harassment will have an invaluable impact on your health and well-being .
3.    Your personal well-being is often put on the back burner when you are in debt. With Missouri and Illinois bankruptcy, you no longer have to sacrifice your own happiness. You can finally have your cake and eat it too.

Does a Missouri or Illinois bankruptcy affect your livelihood? Absolutely. Bankruptcy probably has a much more positive impact on the things that are important to you than what you originally thought. Never underestimate the power a Missouri and Illinois bankruptcy has to change your life. Want to know what else a St. Louis bankruptcy attorney can do for you? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Bank of America to Repay Homeowners Charged Outsized Fees in Foreclosure

questions@castlelaw.net (Blog Author)33280 — Fri, 11 Jun 2010 08:00:00 EST

Bank of America has agreed to pay $108 million back to homeowners who were charged overly large fees during the foreclosure process by Countrywide. Since Bank of America acquired Countrywide back in 2008, they’ve had to deal with more than their fair share of scandal. Now, Countrywide has been exposed for overcharging homeowners who were facing foreclosure.

The real tragedy is that banks like Countrywide don’t put enough effort into stopping foreclosures because they have been benefiting from the process by collecting huge fees. While Bank of America is making up for Countrywide’s mistakes, you never know what other companies could follow in Countrywide’s footsteps. So, what can you do to prevent this from happening to you?

A St. Louis bankruptcy attorney may be able to provide you with more than protection from foreclosure, When you file a bankruptcy, your St. Louis bankruptcy attorney will also review the fees that your mortgage company has charged you for past due payments. This gives everyone the opportunity to see if these fees are what the court considers to be reasonable. Don’t become another victim of the banking industry. With record breaking national foreclosure rates, it may be easier thank you think.

If you need to protect your family from a foreclosure or need help getting back on your feet and out from under unbearable amounts of debt, request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Be Careful of Getting Back into Debt after Your Discharge

questions@castlelaw.net (Blog Author)33132 — Wed, 09 Jun 2010 08:00:00 EST

During the life of your Chapter 13 Missouri or Illinois bankruptcy, the court provides a kind of safety net for you. You must get court permission to incur any additional debt, which shields many families from events that may lead to the dismissal of their case and events that strip people of their fresh start. After your case, you must create your own safety net by setting limits.

A fresh start is a clean slate, to say the least—but, it is not an opportunity to incur more debt. In many cases, getting right back into debt after working so hard to get out of it is hardly wise. If you don’t make good, responsible decisions, you may find yourself in a familiar place—needing protection from foreclosure, credit card debt help, relief from harassing creditors, and searching for a St. Louis bankruptcy attorney.

You may not have the same bankruptcy options available to you the next time around. As I have mentioned before, you can only get the quick benefits of a Chapter 7 discharge once in 8 years. The rules are different when dealing with a previous Chapter 13 Missouri or Illinois bankruptcy, but the options may different than what you expected.

The message I am trying to put out there is that a Missouri or Illinois bankruptcy isn’t a one way ticket to easy street. It is a tool that people who are in overwhelming amounts of debt can use to wipe the slate clean and live a successful life. A St. Louis bankruptcy attorney will help you get a fresh start, but it is your job to make the most of it. And, what an exciting job it is to make sure that you are taking advantage of a fresh start.

Wondering what else you didn’t know about bankruptcy? Get a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

What Can I Do to Avoid Filing Missouri or Illinois Bankruptcy Again?

questions@castlelaw.net (Blog Author)32953 — Mon, 07 Jun 2010 08:00:00 EST

The circumstances that cause many people to file a Missouri or Illinois bankruptcy the first time are very unpleasant. It is tough to be in a position where you need protection from foreclosure, credit card debt help, and relief from all your harassing creditors. These are all experiences that we want to avoid, let alone go through more than once. So, how do you take advantage of your fresh start and avoid the need to file again in the future?

•    Take advantage of everything your St. Louis bankruptcy attorney has to offer. Look for articles, bankruptcy FAQ, and even publications on life after Missouri or Illinois bankruptcy.
•    Start off with the right attorney. Does your attorney even offer free material to help you have a successful life after bankruptcy? Make sure, before you hire a St. Louis bankruptcy attorney, that he or she is willing to help you before bankruptcy and educate you to help prepare you for life after bankruptcy.
•    Be active in your finances. You know what led you down the path to Missouri or Illinois bankruptcy originally. Be strong and keep a conscious of mind of what is going on in your pocketbook.

Is that it? Have we solved the great mystery of obtaining and maintaining a successful life after bankruptcy? Probably not—but it is a start. While these points may be broad, they are essential to developing a good post-bankruptcy life. Still have questions about bankruptcy? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Can I Walk Away from My Car in Missouri or Illinois?

questions@castlelaw.net (Blog Author)32786 — Thu, 03 Jun 2010 08:00:00 EST

There are many people who think that walking away from a home or car is the best solution to their debt problems. While getting rid of a particular debt may be the answer to your prayers, walking away from your home doesn’t mean you are free of the mortgage loan.

If your home is foreclosed upon, it will be in an auction. If your car is repossessed, it too will be sold at auction. If your home or car is sold for less than what you owed to the lender, then you will still be responsible for the remaining unpaid debt—an amount called a deficiency balance. That balance is collectable by the lender and the lender may do whatever it takes, and allowed by law of course, to get it back. That could include going after other property, levying your bank accounts, or garnishing your wages.

Luckily, you can stop the lender from attempting to collect a deficiency balance and usually get rid of the debt itself by filing a Missouri or Illinois Chapter 7 bankruptcy.

Debt often comes with a long list of consequences that many of us are not aware of. While you may think that debt like a deficiency balance is easy to shake, think again. There are always consequences that should be considered. To truly get out of debt, you must stand up and take action. Remember, doing nothing changes nothing. Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn how you can fight back when you’re in debt.

Bankruptcy and Your Lifestyle: Changes after Filing

questions@castlelaw.net (Blog Author)32784 — Thu, 03 Jun 2010 08:00:00 EST

While many people focus on the need to change their lifestyle before they file for Missouri or Illinois bankruptcy, sometimes they forget how important lifestyle is to your life after bankruptcy. Once you’ve gotten protection from foreclosure, credit card debt help, and relief from your creditors, what else needs to change?

•    Avoid credit card balances. While this seems like a no-brainer, you’d be surprised how easy it is to get a little balance on your shiny new credit card.
•    Give yourself a safety net. Savings is a really easy thing to push off. But before you say, “Oh, I’ll do it next month,” think about how much easier your life can be if you kept a savings account to fall back on. After all, a penny saved is a penny earned.
•    Start small. While buying a gigantic house, a new car and that big new 3-D TV may be what you want to do after Missouri or Illinois bankruptcy, I’m not sure it is what you should do after bankruptcy. It is better to be safe than sorry—so keep your big purchases to a minimum until you know you can afford them.
•    Remember how you got into debt in the first place. If any of these behaviors feel oddly familiar, reevaluate your behavior and make sure that you’ve changed your lifestyle—for the better. Life after bankruptcy can be all you dreamed of and more, but the quality of your post-bankruptcy life is completely up to you. Do you and your family a favor and make the most of it.

St. Louis Attorney Steals Settlements from 75 Clients, Could Face Jail Time

questions@castlelaw.net (Blog Author)32671 — Wed, 02 Jun 2010 08:00:00 EST

A St. Louis attorney is now on trial for allegedly stealing $800,000 from 75 clients in his years of practice. Frank Carter was exposed by a long-time personal injury client, Angelisa Garrett, after she made a complaint to the Attorney General’s office. She had been drowning in medical bills for years because she hadn’t yet received her settlement from the insurance company on a claim that Frank Carter was pursuing for her. Mrs. Garret’s complaint to the Attorney General’s office dealt with the constant stream of creditor calls that resulted from unpaid medical bills.

The Attorney General’s office then discovered that the settlement had been released to her over three years ago in the amount of $50,000. Angelisa had never seen a cent of it.

To make matters worse, Carter had multiple clients that were drowning in unpaid medical bills and struggling financially. He referred them to a disbarred attorney so that they could take out loans through his business the “Professional Funding Company.” Some of his clients finally turned to Missouri bankruptcy for help.

A lesson can be learned through all of this. The choice of an attorney is an extremely important decision. If you are thinking of filing Missouri or Illinois bankruptcy, look for client testimonials, case results, and clean records with the Missouri Bar Association.

Wondering what else to look for in a great attorney? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn what you need to know to pick the right attorney for your case.

Can I file chapter 7 if I'm not current on house payments?

questions@castlelaw.net (Blog Author)32639 — Tue, 01 Jun 2010 08:00:00 EST

While it is possible to file a Missouri or Illinois Chapter 7 when you are behind on your mortgage, I’m not sure it is a wise decision if you are trying to stay in your home. If you are unable to quickly catch up any past due payments, then a Chapter 7 will not give you much protection from foreclosure.

The Chapter 7 process is fairly short lived. The automatic stay that prevents your creditors from taking any more action against you will last for a while, but it won’t last forever. If you are still behind on your house payments when you are looking to file for bankruptcy, then a Chapter 7 may not provide the protection that you are looking for. Being current on your house payments when you go in to a Missouri or Illinois Chapter 7 could save you a lot of headache in the end.

You see, Chapter 7 is really designed for people with more unsecured debt. If you have a lot of secured debt, you may find that a Chapter 13 bankruptcy is a better option for you.

Wondering whether a Chapter 7 or a Chapter 13 will make the most sense for you and your family? Get more information by requesting a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

St. Louis' TLC Vision Emerges From Bankruptcy

questions@castlelaw.net (Blog Author)32470 — Fri, 28 May 2010 08:00:00 EST

After filing for reorganization bankruptcy in December of 2009, Missouri eye care company, TLC Vision Corp., has announced that it is emerging from bankruptcy. This MO company, which is one of the sponsors of golf pro Tiger Woods, struggled financially throughout 2008 and 2009 before declaring Chapter 11 bankruptcy in the face of a recession that significantly lowered the number of Americans seeking corrective vision operations that are not normally covered by health insurance.

The Missouri company continued to successfully operate throughout the bankruptcy and reorganization process, without the employees or patients seeing significant change during the last six months. In December, TLC Vision had between $100 and $500 million in assets and between $100 and $500 million in debts.

As of May 6, the St. Louis organization is now private company owned by Charlesbank Capital Partners LLC and H.I.G. Capital and has representatives from their new owners on a new board of directors.

Missouri Developer Declares Bankruptcy To Stop Foreclosure

questions@castlelaw.net (Blog Author)32466 — Fri, 28 May 2010 08:00:00 EST

Jamestown LLC, a western Missouri developer, filed for Chapter 11 reorganization bankruptcy just a day before a bank was set to foreclose upon a large development project in the works near Springfield, Missouri, at U.S. Highway 60 and Business Route 60.

Weeks before, Fifth Third bank sent Jamestown a notice that the Missouri developer had defaulted on a $5 million loan. However, the 200-acre property mentioned in the letter is under contract with a private investor and the sale is expected to close within the month. The owner of Jamestown still has hope that the reorganization bankruptcy will help his company “get over the hump” and continue on their planned community project which began several years ago. According to the Bankruptcy Court documents, Jamestown LLC has total assets of $15.7 million and liabilities of $8.47 million.

The Missouri company now has until September to file a bankruptcy reorganization plan.

Can a Creditor Stop the Discharge of your Credit Card Debt?

questions@castlelaw.net (Blog Author)32349 — Thu, 27 May 2010 08:00:00 EST

If you are planning to file a Missouri or Illinois Chapter 7, you are probably relieved to have found a solution to your credit card debt, among other things. However, before you rack up more credit card debt in the hopes that it too will be discharged, you may want to think twice.

A creditor can actually challenge your ability to discharge credit card debt if he or she thinks that you charged the card in a fraudulent way. What does this mean? Well, in the context of a bankruptcy, fraudulent use of a credit card includes:

•    Obtaining the card under false pretenses
•    Spending money knowing you are on the eve of filing bankruptcy
•    Charging the card knowing you have no ability or intent to repay the creditor

How would a creditor know that you had spent money knowing full and well that you did not intend on repaying it? A creditor wouldn’t necessarily know what your thoughts were, but they could identify some behavior consistent with that notion, including:

•    Taking cash advances a few months before filing or purchasing luxury items
•    Making charges after retaining a St. Louis bankruptcy attorney
•    Spending more money than you could possibly pay back

Doing any of these things within 90 days of filing a Missouri or Illinois Chapter 7 is dangerous. It isn’t a good idea to engage in any of this behavior. Make sure that when you need a solution to credit card debt, there is one that is available for you.

Wondering what else bankruptcy can do for you? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out.

Will Your Credit Be Better or Worse After Bankruptcy?

questions@castlelaw.net (Blog Author)32347 — Thu, 27 May 2010 08:00:00 EST

Calculating credit is not a simple thing; many factors go into it. A bankruptcy will indeed show up on your credit report. The surprise is that 99% of the time a credit score will actually improve after a bankruptcy.

“But, James! I thought bankruptcy was supposed to ruin my credit forever!”

By the time you are ready to file bankruptcy, your credit is probably already in bad shape. Missouri or Illinois bankruptcy can actually wipe out debts that show as ‘owing’ on your credit report, improving your score by that fact alone. It also allows you to start fresh and establish a good payment history, which will also improve your score. So, is it filing bankruptcy or staying in debt that will truly ruin your credit?

A bankruptcy case will appear on your credit report, but these days it’s on everybody’s credit report. Over a million people filed bankruptcy last year—and the number of bankruptcy filings is only growing. If lenders decided they couldn’t lend to someone with a Missouri or Illinois bankruptcy on their credit report, they may have some tough times getting business in this economy.

I can’t speak for everybody, but I have seen a lot of people improve their credit scores. Still want to know more? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

How Can I Make My Missouri or Illinois Bankruptcy an Easy Process?

questions@castlelaw.net (Blog Author)32187 — Tue, 25 May 2010 08:00:00 EST

After suffering through crushing amounts of debt, harassing creditor calls and constant threats to your property, you are probably ready for some serious relief. If you’ve decided that Missouri or Illinois bankruptcy is the way to get that relief, then it is essential to your well-being and that of your family that your bankruptcy experience is as easy and simple as possible.

So how do you make sure that your family will not continue to suffer once you decide to file a Missouri or Illinois Chapter 7 or Chapter 13? Pick the right St. Louis bankruptcy attorney! While bankruptcy can be made very easy in the hands of a qualified and experienced attorney, one who is inexperienced may make the process harder for you than it should be.

Bottom line: pick an attorney who proves to you that he or she can get positive case results, has filed enough cases, and has systems set in place to simplify your life during your Missouri or Illinois bankruptcy. It is scary enough when you are in serious need of protection from foreclosure, credit card debt help, and relief from harassing creditors. You don’t need to add the uncertainty of an inexperienced bankruptcy attorney.

How can you make sure you’ve found the right St. Louis bankruptcy attorney? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn what to look for in a great attorney and more!

Pfizer Eliminates Jobs. Will This Mean Layoffs for St. Louisans?

questions@castlelaw.net (Blog Author)31986 — Fri, 21 May 2010 08:00:00 EST

…And the economy continues to take hits. Big hits. Pfizer, a drug maker with offices all over the world, is eliminating 8 manufacturing plants and is planning to scale back at six additional locations. The planned cuts will eliminate 6,000 jobs.

Over the last six years, Pfizer has eliminated 38% of its workers and roughly 48,000 positions in an attempt to cope with the economic slump we are all experiencing. While spokespeople are saying that St. Louis will not feel the impact of Pfizer’s decisions right now, there is no telling what is in store for the future.

Despite the reports, the St. Louis Pfizer research facilities in St. Louis have cut their work force from 1,000 to 450 and have sold one research space.

Will Pfizer go the way of US Fidelis and KV Pharmaceutical? It’s too hard to tell. There is no doubt that the downfall of those two companies had a tremendous effect on the St. Louis job market and overall economy. However, in such a time of uncertainty, it is nice to know that you can still count on your St. Louis bankruptcy attorney.

A layoff is a catastrophic life event—leaving many families in need of protection from foreclosure, a solution to credit card debt, and relief from the harassment of creditors. You can suddenly be in more debt than you ever imagined possibly merely months after a layoff. Missouri and Illinois bankruptcy, however, can help. Request a free copy of my layoff report now to learn what options you have after job loss.

New Free Book from St. Louis Car Accident Attorney for Injured Victims

questions@castlelaw.net (Blog Author)31985 — Fri, 21 May 2010 08:00:00 EST

As you may have already heard, we just made a new website available to injured victims to make sure they get answers to their questions after experiencing an accident. There is tons of free information available on our new website that is intended to answer questions like:

•    The insurance adjuster called me and asked me some questions. Is there any danger in answering him or her?
•    How soon should I seek medical attention after my accident?
•    What happens if the accident was partly my fault?
•    These medical bills keep piling up. How can I get them paid before I’ve even gotten my settlement?

In order to provide the same great service we’ve been providing to our bankruptcy clients for 16 years, we wanted to take it a step further and offer my latest book, “I Survived: The Crash Victim’s Guide to Dealing with the Aftermath,” for free. This Missouri accident guide includes the latest fatal car accident statistics, five mistakes that you could be making after an accident and how to avoid them, plus a step-by-step guide on deciding if you even need an attorney.

Don’t get stuck without knowing the facts that could help save you from making a mistake after your accident. You can get your free copy by visiting our new injury website www.TheMissouriInjuryLawyer.com.

The Number One Information Resource for St. Louis Accident Victims Has Arrived!

questions@castlelaw.net (Blog Author)31984 — Fri, 21 May 2010 08:00:00 EST

You already know that we help people handle their debt and protect them from their creditors with bankruptcy relief, but did you know that we also help the victims of serious accidents in their fight against the insurance giants?

To better serve the St. Louis community, we’ve taken the same dedication to providing free information and educational materials with bankruptcy and applied it to the personal injury side of our practice. Now, we are going to make sure that anyone who needs information about their accident can have access to it with our new injury website.
www.TheMissouriInjuryLawyer.com will help accident victims learn how to handle the adjuster, how soon they need to get medical treatment, what information they need to keep track of after an accident, and more! There are numerous mistakes that can be made in the aftermath of an accident. It is our mission at Castle Law Office to help those people avoid making a mistake that will allow the insurance companies to treat them poorly.

We will take our commitment to education one step further by offering a free Missouri accident guide. “I Survived: The Crash Victim’s Guide to Dealing with the Aftermath,” which can help anyone who has been in an accident, knows someone who has been in an accident, or simply wants the right information before an accident even occurs. Best of all, you can request it for free on our new website!

We are dedicated to giving a voice to people who’ve been victimized by the credit industry or the insurance industry. Please, check out our website and learn what you didn’t even know you didn’t know about St. Louis accidents.

How Can I Make Sure I Have Good Chapter 7 Information?

questions@castlelaw.net (Blog Author)31835 — Wed, 19 May 2010 08:00:00 EST

Finding information on Chapter 7 bankruptcy for Missouri or Illinois isn’t hard. However, making sure that the information is reliable and accurate is. There are millions of sites on the web, all of which are willing to give you loads of information, regardless of its relation to the truth.

You don’t want to be misinformed when it comes to filing a Chapter 7 bankruptcy. If your financial future is in trouble, you need the right information—and you need it quickly. So, how do you know if the information you’ve found is accurate?

•    First, look at the credentials of the person giving the information. If the author of the website or article isn’t identified, that isn’t a good sign. If he or she has not posted any credentials to speak of, that isn’t a good sign either.
•    Second, you can always double check with the court. Court websites end in “.gov” and are typically filled with unbiased information that can help answer a question or help you determine if the information you’ve already obtained is accurate.
•    Third, be wary of directories. Big online archives, directories, or answering services don’t necessarily have the authority to give you information about Chapter 7 bankruptcy. Be selective and critical when you are gathering information.

It isn’t always easy to tell fact from fiction. Don’t make a decision about your financial future without first making sure you have accurate information on hand. Are there any more resources for you? You can get a copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” for free by visiting our contact page.

What Should a St. Louis Bankruptcy Attorney Be Doing for You in a Bankruptcy Case?

questions@castlelaw.net (Blog Author)31770 — Tue, 18 May 2010 08:00:00 EST

Every bankruptcy case is unique just like every person that files for bankruptcy. After all, we are all different as we go through life overcoming different obstacles and sometimes facing different questions. So it makes sense that all sorts of different situations may arise in each and every Missouri and Illinois bankruptcy filing. There are, however, some basic services that you can expect a great bankruptcy attorney in St. Louis to do provide for you, including:

•    Educate you about bankruptcy law
•    Assist in obtaining proper credit counseling
•    Analyze the legal issues, such as exemptions and dischargeability
•    Prepare all documents to be filed with the court
•    Notify creditors threatening legal action of the bankruptcy filing to stop any further proceedings such as foreclosure, repossession and garnishments
•    Review your file and appear at the meeting of creditors with you
•    Prepare and appear at the confirmation hearing to obtain Court approval of your case

The list goes on and on. To get a complete list and other information about how to form a good relationship with your St. Louis bankruptcy attorney, you can request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

If you are trying to decide whether to hire a St. Louis bankruptcy law firm or file bankruptcy by yourself, this may be a good checklist to look at as you are making your decision. Are you willing and prepared to do all these things for yourself? If you are picking among bankruptcy attorneys, this list can prepare you to ask the right questions and pinpoint the qualities you want in an attorney.

Either way, it is important to know what to expect from your St. Louis bankruptcy attorney in order to have a successful bankruptcy case.

Will I go to jail for not reporting increased income in bankruptcy?

questions@castlelaw.net (Blog Author)31588 — Fri, 14 May 2010 08:00:00 EST

While a Missouri or Illinois bankruptcy can be one of the greatest tools to use to get out of debt, the consequence for intentionally withholding information or lying can be great.

As you know, you must report any changes in your income during the life of your Chapter 13. Now, this means you report not just an increase in income, but a drop in your income as well. Your plan payment is based on many factors, one of which is your ability to pay. If your ability to pay changes, you plan payment may need to be modified.

You won’t automatically go to jail for not reporting a change in income. You could, however, face some harsh consequences. At the very least, you could be kept from getting your discharge. That means all the hard work you and your St. Louis bankruptcy attorney put into getting your family protection from foreclosure, credit card debt help, and relief from your creditors could’ve been for naught.

You also run the risk of being charged with bankruptcy fraud. Fraud is a punishable crime and could result in heavy fines or jail time.

So, if you are trying to deduce if it is worth it to lie about your income, my answer would be no. Haven’t you heard the line, “There is no such thing as a free lunch?” Well, bankruptcy isn’t a free lunch. You don’t get to wipe your slate clean without giving up a little on your part. Missouri and Illinois bankruptcy is, however, probably the best move you can make when you are in debt.

Still not sure if bankruptcy is right for you? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn more.

When Can I Expect to See a Garnishment in Illinois?

questions@castlelaw.net (Blog Author)31585 — Fri, 14 May 2010 08:00:00 EST

Having your wages garnished can force you into a really unpleasant position. According to Illinois wage garnishment laws, a creditor can take 15% of your wages, even if you are the head of household. So, is there any way to see this coming?

Unfortunately, no. A wage garnishment can pop up suddenly as your creditors do not care about bad timing. Just like Missouri, under Illinois wage garnishment laws, there is no specific amount of time or amount of debt that tells a creditor it is time to start garnishing your wages. There are, however, a few steps that the creditor must take. A creditor must first sue you, get a judgment against you, and then obtain an order from a judge to garnish your wages. But, the decision to start these steps to garnish your wages is at the discretion of the creditor.

Thankfully, there is a way to fight back against wage garnishments—and your creditors. Missouri and Illinois bankruptcy can stop a garnishment from taking such a substantial amount of your check. A Fairview Heights, Illinois bankruptcy attorney can also help you get protection from foreclosure, help with credit card debt and other burdensome debts, and get you relief from harassing creditor phone calls.

Remember, doing nothing changes nothing. If you are comfortable with a garnishment on your paycheck that may not disappear any time soon, then maybe you don’t need to stand up to your creditors. However, if you are ready to find out what action you can take to stop your wage garnishment and get out of debt, you can request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to start learning what bankruptcy could do for you.

Do Creditors Have to Follow the Fair Debt Collection Practices Act?

questions@castlelaw.net (Blog Author)31355 — Tue, 11 May 2010 08:00:00 EST

The Fair Debt Collection Practices Act can be thought of as a set of rules that fall under the umbrella of the Consumer Credit Protection Act. If it sounds powerful, that is because it is and it gives some power back to consumers like you. It prevents creditors from using the common tactics of harassment and abuse against you. And, just like any other law that regulates a particular group, there are quite a few creditors that feel they are above the rules.

According to the FDCPA, certain bill collectors can’t call you before 8 a.m. or after 9 p.m. They can’t call you at work if you’ve asked them to stop doing so. They also can’t call you if they know you have a St. Louis bankruptcy attorney or use abusive or profane language. The list goes on and on. Unfortunately, consumers aren’t always aware of the protections that have been set for them and often don’t even know they have rights when it comes to dealing with creditors.

Consumers are not, however, protected from the original creditors. The FDCPA only applies to a third party creditor, like a collection agency. There is one common solution to both a scenario where a collector isn’t following the rules and a scenario where the collector has no rules to follow.

Filing Illinois or Missouri bankruptcy can stop your creditors dead in their tracks. Plus, a St. Louis bankruptcy attorney can help you get a handle on your debts. Remember, doing nothing changes nothing. You can’t just stick your head in the sand and wait for your creditors to go away. They won’t unless you do something about it.

Wondering what your options are? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn the best way I know to take care of collectors and debts and get on with your life.

Castle Law Community Involvement Team: Bowl for Kid's Sake

questions@castlelaw.net (Blog Author)31353 — Tue, 11 May 2010 08:00:00 EST

As some of you know, Castle Law Office has taken its passion for helping people get out from under crushing amounts of debt and started its own “Community Involvement Team.” The team is designed to find out a different way to reach out and give back to a community who has given us so much.

In April, the Community Involvement Team participated in “Bowl for Kid’s Sake,” a bowling event that benefits Big Brothers Big Sisters of Eastern Missouri. The event was held at Brunswick Zone in Chesterfield, Missouri and included pizza, prizes, and bowling for all those who were eager to support the organization. Castle Law Office raised $2,818.89 and one of our teams took home the award for individual fundraising. You can see a video recap of our event above.

How will we give back to the community next month? We have our sights set on “Habitat for Humanity,” which helps lower-income families in need of decent housing build their own homes. In 2009, the St. Louis chapter built 24 homes, reflecting a development investment of $3.5 million.

If you’d like to get involved, you join our Community Involvement Team mailing list to receive exclusive updates, opportunities to participate, and more. Just e-mail Sam at stownzen@castlelaw.net to get involved.

Can You Get Rid of Back Alimony or Child Support Payments in an Illinois Bankruptcy?

questions@castlelaw.net (Blog Author)31276 — Mon, 10 May 2010 08:00:00 EST

Unfortunately, your alimony and child support debt cannot be eliminated simply by filing an Illinois bankruptcy. However, an Illinois bankruptcy may be able to provide enough relief so that these payments are no longer a burden.

Alimony and child support payments are considered family support and there isn’t anything a Belleville, Illinois bankruptcy attorney can do to help you get rid of them. These debts are considered non-dischargeable.

A great Illinois bankruptcy lawyer could, however, help you eliminate your other debts so that your family support payments are no longer a burden. An Illinois chapter 7 can give you credit card debt help, eliminate medical bills, and stop your creditors from taking any more action against you, like wage garnishment or repossession. With such a large burden lifted off your shoulders, you could fit your family support payments into your budget more easily.

Remember, for everything that bankruptcy can’t do for you, there are two things it can. Though these payments are non-dischargeable, an Illinois Chapter 7 bankruptcy can stop your wage garnishment and eliminate your credit card debt to free up enough of your income to make your family support payments.

Still not sure if bankruptcy is the right move for you? Get free information like my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” from reputable attorneys in your area,

You Could Be the Next One to Say "I'm filing bankruptcy and life is better than ever!"

questions@castlelaw.net (Blog Author)31275 — Mon, 10 May 2010 08:00:00 EST

It’s easy to think that filing Missouri or Illinois bankruptcy is the end of the world. After all, taking life’s journey with the stress of debt on your shoulders tends to make everything seem a bit more gloomy. However, it may be time to adopt the “glass is half full” approach to life.

Bankruptcy is intended to give you a new beginning. It provides you with a new way to live out your life, and it finally lets you focus on what’s important. Can you imagine what your life would look like without creditors harassing you day and night, without wage garnishments keeping you from putting food on the table, and without the worry that you’ll need to get your family protection from foreclosure any minute?

But, hey, don’t take it from me. Here are some testimonials from Castle Law clients that may help you see the benefits of filing bankruptcy.

“We wanted to keep the house and cars and still be able to pay our household bills, health insurance, and simply buy groceries. When [I met with you all], I went to the grocery store with my next paycheck and finally got what I really wanted.” –Kimberly L.

"Our main concern when coming to Castle Law was our debts. We were worried about how we could deal with all the problems we had at home, and how we could pay our bills. We felt 100% better after our first visit.”—Stephen and Tammy J.

You can find more customer testimonials here.

Whatever course of action you decide to take, remember that doing nothing changes nothing. If you want to do something about your debts, start researching your options with free information like my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Is It Hard to File Illinois Bankruptcy on Your Own? | Belleville Illinois Bankruptcy Lawyer

stownzen@castlelaw.net (Blog Author)31144 — Thu, 06 May 2010 08:00:00 EST

Filing bankruptcy in Illinois is a difficult process, whether you are an inexperienced Fairview Heights bankruptcy attorney or a resident trying to file on your own. The law has only become more complicated over the years. Federal bankruptcy law is no exception. Most lawyers are finding that they need to specialize in one area in order to truly be a master of their trade, rather than a jack of all trades.

What makes filing Illinois bankruptcy such a difficult process? Aside from the strict requirements for eligibility, the actual process is full of hurdles. You have to know which debts can be discharged, how to protect your property, and what rules you have to follow while you are in the actual bankruptcy case. Just one mistake could cost you your case.

Most people looking to file Illinois bankruptcy have found that it is not worth the risk to file bankruptcy without an Illinois bankruptcy attorney. What risk, you say? If you make any mistakes during your case, you run this risk of a dismissal. That means your bankruptcy case will be thrown out, leaving you with a bankruptcy on your credit report and no clean slate.

If you still aren’t sure which method is the best for you, try finding free bankruptcy FAQ, articles, blogs, and even publications like my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” No matter which path you choose, you and your family should be making an educated decision.

Can You Get Your Car Back after Repossession in Illinois?

questions@castlelaw.net (Blog Author)31142 — Thu, 06 May 2010 08:00:00 EST

In Illinois, car repossession may occur without any prior notice or court order from the lender. After being late on just one payment, you could be left without a way to get to work and one of your biggest material assets.

While it happens quickly, you do have a limited amount of time to react after the car has been repossessed. The seller must give you notice within 3 days of the repossession and give you 21 days to pay the required fees to get your car back. Unfortunately, the requirements for redeeming a car after repossession are often hard to satisfy.

If you’ve paid 30% or more of the total purchase price of the car, you can typically get the car back, but usually you must come up with all of the payments owed, any late charges, and the costs of the repossession to do so. This can be a big price—often way out of the realm of what an average person can afford. If you’ve paid less than 30% of the total purchase price of the car, a creditor can require that you pay the entire loan balance in order to get your car back.

You can, however, get your car back another way. A St. Louis or Wentzville Missouri bankruptcy attorney can help to stop your repossession, along with wage garnishment, creditor calls, and foreclosure, and let you get a handle on the rest of your debt. With a Chapter 13 bankruptcy in Missouri or Illinois, you can finally stop living in fear of the repo man and start living free of the burden of debt. Learn more by requesting a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

What Can You Do If Your Creditors Are Breaking the Law?

questions@castlelaw.net (Blog Author)30841 — Fri, 30 Apr 2010 08:00:00 EST

A former debt collector, 58 year old accountant Steven Katz, has decided to fight back against his creditors. After a debt collector damaged his credit score with what Katz claimed as an illegitimate bill, he decided that he was going to sue—and he won.

Certain bill collectors who harass you and your family, call at inappropriate hours or at work, and use inappropriate language in an attempt to collect a debt may be breaking the Fair Debt Collection Practices Act. Katz is one of a growing group of people that has insisted on fighting back against obvious violations by creditors of the FDCPA. In fact, 2009 saw a 60% increase from 2008 in federal lawsuits against creditors violating the act.

If your creditors are breaking the law, you can take action against them just as Steven Katz did. It is important to remember, however, that suing your creditors may not make your debt go away.

There is no quick and easy way to get out of debt. There is, however, a potentially permanent solution that can make your creditors disappear, give you and your family credit card debt help, and stop your wage garnishment.
For many people, a Missouri and Illinois Chapter 7 can eliminate debt and wipe the slate clean, allowing someone like you and your family to start building the life you always wanted.

Wondering, “Should I file bankruptcy?” It can be an easy question to answer if you do the right research and find the right information. Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn what Chapter 7 could do for you.

How Many People Will File Bankruptcy in 2010?

questions@castlelaw.net (Blog Author)30839 — Fri, 30 Apr 2010 08:00:00 EST

It is hard to say how many people will file bankruptcy in 2010. We can, however, predict how many people will file bankruptcy in 2010 based on the projected economic forecast.

What does 2010 look like so far? National foreclosure rates have continued to soar. Experts are predicting that the housing market will not actually turn around until mid to late 2010. The job market is in a similar position. The prediction is the job market will not turn around until 2011. That sounds pretty far away if you are out there searching.

With the housing and job markets still recovering, Americans are tense. No one feels secure in their jobs or in their homes. What does this mean for bankruptcy filings in 2010? I would expect to see them continue to rise past 2009’s 1.4 million filings.

Of course, no one can predict the future, but these factors tell me that more and more people will need to turn to a Missouri or Illinois bankruptcy lawyer for help. Fortunately, the bankruptcy code was created to do just that--help us through the hard times. With all of the uncertainty we face, it should be a comfort to know that there is a way to get through the tough times ahead.

Wondering if Missouri or Illinois bankruptcy is the best way for you to get through a job loss, medical emergency, or other catastrophic event? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn more about what bankruptcy can do for you.

Are the Illinois and Missouri Bankruptcy Questions Hard to Answer?

questions@castlelaw.net (Blog Author)30795 — Thu, 29 Apr 2010 08:00:00 EST

The Illinois or Missouri Bankruptcy questions aren’t particularly hard to answer if you are telling the truth. In order to get protection from foreclosure, credit card debt help, and relief from harassing creditors, you must make your financial life an open book. It is a fair trade for the fresh start awaiting you.

Basically, to get the protection that you need, your St. Louis bankruptcy attorney needs to know what your needs are first. If they don’t know the full scope of what you own, what you owe, and who you owe, there is no way that any attorney will be able to fully help you.

Keep in mind, Missouri and Illinois bankruptcy is designed to help you get out from under crushing amounts of debt. A great St. Louis or Wentzville, Missouri bankruptcy attorney will help you keep the property you want to keep but he or she can’t do that if you are intentionally concealing assets or information. Every detail is important.

Furthermore, if you lie to the Trustee, you are doing so under oath. You are also signing your bankruptcy paperwork under the penalty of perjury—both mean huge consequences if you are not telling the truth. If the Trustee decides to investigate, you could be facing dismissal of your case or, at the very worst, jail time and significant fines.

Missouri and Illinois bankruptcy can be more beneficial than any other tool to someone drowning in debt, but only if you are truthful about your finances. Wondering what other mistakes you could make that may cost you your case? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn about the other 6 mistakes that commonly cause a case to be dismissed.

Missouri Businessman Declares Bankruptcy After Pleading Guilty To Fraud

questions@castlelaw.net (Blog Author)30690 — Tue, 27 Apr 2010 08:00:00 EST

A man in St. Louis has plead guilty to running a Ponzi scheme that defrauded a number of investors – the Missouri real estate investor has also declared bankruptcy in the wake of his fraudulent behavior.

According to the US Attorney’s Office and All Headlines News, the man, 33-year-old Aaron Duncan, made an estimated $3.9 million as CEO of his company, The Duncan Group. The real estate investment company involved investors in a ponzi scheme – a type of business fraud that tricks investors out of their money by promising larger returns and delivering small amounts of money taken from other fraud victims.

Duncan ran his Missouri business scheme for two years before telling his investors that he had to declare St. Louis bankruptcy. He plead guilty to mail fraud and money laundering this week – felonies which could lead to up to 30 years in prison and $500,000 in fines.

St. Louis Globe Democrat: Pro Athletes Susceptible To Bankruptcy

questions@castlelaw.net (Blog Author)30688 — Tue, 27 Apr 2010 08:00:00 EST

With the NFL draft at hand, and St. Louis Rams’ number one draft pick quarterback Sam Bradford in line for a $50 million contract, it is difficult to think that any of these young and talented athletes will ever have difficulty with their finances. However, as St. Louis lawyer and sports expert Michael Barnes points out in the St. Louis Globe Democrat, far too many professional sports players soon lose all that they have.

According to Barnes, a disproportionately large number of pro athletes lose their fortune and declare bankruptcy even though their paychecks are significantly bigger than others. The reasons? Barnes blames poor financial decisions, the tendency for athletes to spend their money as a lottery winner might, and the tendency for athletes to get divorced while playing or soon after they retire. In addition, Barnes says that rich athletes often make the mistake of letting relatives handle their money instead of professionals – or choosing risky investments over long-term financial success.

Can I Find a Good Bankruptcy Lawyer on the Internet? | St. Louis Bankruptcy Attorney

questions@castlelaw.net (Blog Author)30657 — Tue, 27 Apr 2010 08:00:00 EST

Google isn’t just a website anymore—it has become a way of life. Search engines know where you are, your search history, and how to optimize the results best suited to your needs. Still, when it comes to something as serious as your financial future, can you really trust the internet?

Sure! The nice thing about the internet is that you can see exactly how much or how little information you want to see. You can look up reviews, a Google business listing or you can look at the lawyer’s actual website. There are a few specific indicators you should look for on a website if you are trying to find the best bankruptcy attorney in St. Louis.

• Free information. The best way to help someone make a decision, like whether to file Missouri or Illinois bankruptcy, is to first educate them by laying out their options. If an attorney is willing to provide you with information to help you make an educated decision before you even walk in the door, it is a good sign that this Missouri or Illinois bankruptcy attorney truly has your best interests at heart.

• Testimonials from other clients. What better way to discover how satisfied you could be with their service than to hear it from clients who have been through the bankruptcy process!

Want more tips on how to find the best bankruptcy attorney for your case? My Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” provides 10 tips to help you on your quest for the right attorney. You can request it for free here.

Does Every Attorney Have Mortgage Experience? | Belleville Illinois Bankruptcy Attorney

questions@castlelaw.net (Blog Author)30653 — Tue, 27 Apr 2010 08:00:00 EST

If you are having trouble with your mortgage, you may think that you can turn to any attorney for help. The truth is that, these days, the legal world has become so complicated that most attorneys specialize in a specific area. So, no, not every attorney has mortgage experience but there are some that do.

Depending on your specific issue, you can probably find the right kind of St. Louis law firm to help you with your mortgage. If your problem is with the lender or the mortgage itself, you probably want to turn to a real estate attorney.

If you are having difficulty paying your mortgage, you probably want to speak with a St. Louis bankruptcy attorney. A Missouri or Illinois bankruptcy lawyer can get you and your family protection from foreclosure and help you get back on track with your mortgage.

Keep in mind that just because you have found an attorney in the right practice area doesn’t mean that you’ve found the best attorney. You’ll want to look for specific criteria that will let you know that your attorney has the experience and qualifications necessary to get you protection from foreclosure. If you are looking for a St. Louis bankruptcy attorney, you can request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn the ten best secrets to finding a great bankruptcy attorney in St. Louis.

How Do I Know If My Debt is Good or Bad? | Illinois Bankruptcy Lawyer

questions@castlelaw.net (Blog Author)30649 — Tue, 27 Apr 2010 08:00:00 EST

In today’s world, debt is a burden that most American families must deal with. Most people need credit card debt help, with average US household carrying about $10,700 in credit card debt if they have at least one card. On top of mortgages and car loans, it is hard to determine which debt you need to take on first, if you can at all. So, which debt can be considered bad and which can be considered good?

A bad debt is a debt you’ve taken on for something that you don’t really need. Perhaps the hardest form of bad debt to deal with is credit card debt. Credit cards let us buy little, everyday items without thinking about how much they cost. How many times have you thought, “Oh, I’ll just put it on my credit card”? To make matters worse, those debts are at very high interest rates and leave most families unable to catch up. Most people who get credit cards are looking for a solution to credit card debt soon after.

If you can afford the debt you’ve taken on and absolutely need it, you could consider that good debt. Having a home or car loan is not a bad reason to be in debt—just make sure that any debt you are going to take on is something that fits with your budget and lifestyle before you sign up.

Are you not sure if you can continue to pay your monthly bills? You can request a free copy of my Missouri and Illinois bankruptcy book to start learning how to know when your debt has gone too far and what you can do about it.

Should I File a Chapter 7 Even After a Foreclosure in Missouri or Illinois?

questions@castlelaw.net (Blog Author)30580 — Mon, 26 Apr 2010 08:00:00 EST

The decision to file bankruptcy is always up to you. Many people who decide to file Missouri or Illinois bankruptcy do so because they’ve gotten the facts and realize it is the best way for them and their families to get credit card debt help, stop wage garnishments, and get relief from harassing creditor calls. Still, it is important that you get all the facts before you decide what is right for you.

So, what are the facts about the aftermath of a foreclosure? While it may seem that you can just get rid of your mortgage debt by walking away from your house, it may not be the case. If your home is sold for less than you owe, you will have to pay the difference back to the lender. That leftover balance is called a deficiency balance and it is 100% collectable.

A Missouri or Illinois Chapter 7 can actually get rid of a deficiency balance, as well as your other debts. Often, people don’t realize that walking away from your house doesn’t mean you are free and clear and are glad to be able to use Chapter 7 as a tool to finally help them get out of debt.

If you are still wondering, “Should I file Chapter 7 bankruptcy in Missouri or Illinois?” consider finding more information about what bankruptcy can do for you. I’ve made my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” available for free to help people like you find more reliable information to help them make a decision about their financial future.

What If I Don't Make My Plan Payments? | Chapter 13 Rules in Missouri and Illinois

questions@castlelaw.net (Blog Author)30478 — Sat, 24 Apr 2010 08:00:00 EST

In a Chapter 13 bankruptcy in Missouri and Illinois, your St Louis bankruptcy attorney will prepare a plan which states how much your payment to the trustee is in order to pay all of your debts over a 3 to 5 year period. The amount of your payment is based on several factors, such as how much you owe and how much you are able to pay.

Setting the right plan payment is essential to the success of your case. First, your Missouri or Illinois Chapter 13 can’t get confirmed without a plan that the Judge will approve and will pay all creditors required to be paid in full.

Second, you must be able to make your payments. Why? Your case will eventually be dismissed. If your case has yet to be confirmed, it won’t be if you haven’t made your payments. If your plan has been confirmed and you still don’t make payments, your case will be on the next dismissal docket.

Chapter 13 in Missouri and Illinois provides immense benefits to those in debt—protection from foreclosure, credit card debt help, relief from creditors, and more. However, in order to get those benefits, you must play by the rules of the game. Wondering what other rules you have to play by in a Chapter 13? You can learn the rules and more by requesting my free Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

James Brown's interview with America's Premier Experts Release on YouTube

questions@castlelaw.net (Blog Author)30389 — Thu, 22 Apr 2010 08:00:00 EST

In 2009, Castle Law Office founder James Brown was selected as one of America’s Top 20 Premier Experts for his experience and knowledge in bankruptcy. After 16 years spent helping over 30,000 families in the St. Louis area get relief from their debt, he is really proud to be able to share his know-how with hard-working American families, especially during this tough economy.

He has been featured in Newsweek and the Wall Street Journal and even co-authored a now best-selling book. “Shift Happens,” which gives detailed advice on being successful in the new economy. Most recently, he was interviewed, along with the other 19 experts, about his one piece of advice to survive—and thrive—in the economy.
You can view the interview above.

The staff at Castle Law Office would like to congratulate James on the passion he has for his clients and the dedication to helping families get relief from debt that enabled him to receive this great honor.

If you would like to learn more about how you too can survive this economy, request a free copy of James’ book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Successful People Who've Filed Bankruptcy | Wentzville Missouri Bankruptcy Attorney

questions@castlelaw.net (Blog Author)30382 — Thu, 22 Apr 2010 08:00:00 EST

The list of successful people who have filed for bankruptcy has only gotten bigger. It is no doubt that bankruptcy has actually been a tool in helping people follow their dreams and live the lives they always wanted.

Walt Disney filed for bankruptcy when he was struggling as a film maker. After eliminating his debt, he went on to create the famous Mickey Mouse character that still makes us all kids at heart.

Milton Hershey’s first attempt at opening a candy shop ended in massive amounts of debts. As a result, he filed for bankruptcy protection. After that, he started Lancaster Caramel Company and soon after became the big chocolate maker that we all know and are guilty of loving.

Larry King struggled after first hitting success in the sixties. After racking up $352,000 in debt, he filed for bankruptcy protection in 1978. He went on to become one of the most famous personalities of all time, interviewing over 30,000 people in his entire career.

The point of these examples is to explain that you can be a success after bankruptcy. In fact, for many famous people who’ve declared bankruptcy, getting rid of their debt was instrumental in their success. There is no reason that you can’t have everything you want in your life after bankruptcy either.

Another important learning point is to never quit! All of these people could have quit when it seemed debt was too much and they were beat. But they used a very powerful tool to their advantage, learned what didn’t work in the process, and started again with a clean slate, destined to become great.

Still not sure if Missouri or Illinois bankruptcy is right for you? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” and learn how much debt is too much, what your options are, and how you can find the best St. Louis bankruptcy attorney to help you.

What is the History of Bankruptcy? | Illinois Bankruptcy Lawyer

questions@castlelaw.net (Blog Author)30216 — Tue, 20 Apr 2010 08:00:00 EST

Owing money used to be a much different business, a punishable offense even. As the years went on, however, America made constant revisions as the nature of the market (and its people) began to show themselves fully.

After the Revolutionary War, many were left in financial ruin. The creation of the first federal bankruptcy law in 1800 came with the adoption of the United States Constitution soon after the war. In 1898, that law was expanded to include corporations. It was clear, even to our earliest law makers, that there needed to be some sort of system in place to help people who were in financial trouble.

The laws were once again changed in the 1970s to make it easier for any person or company who needed bankruptcy protection to get it. The result was six times as many bankruptcy cases from 1980 to 2005 as there were before. Despite stricter laws passed in 2005, bankruptcy filings are still on the rise.

As you can see, bankruptcy has been an institution in America. As the credit industry got stronger and harsher, the bankruptcy laws became more inclusive and available. It is nice to know that we live in a country that is willing to provide protection from foreclosure, credit card debt help, and relief from creditors when we need it.

Wondering what the bankruptcy laws look like today? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn what bankruptcy means for the modern hard-working American family.

Chapter 13 Rules: Can You Buy a Car During a Chapter 13 in Missouri or Illinois?

questions@castlelaw.net (Blog Author)30215 — Tue, 20 Apr 2010 08:00:00 EST

Chapter 13 bankruptcy in Missouri and Illinois is a blessing when you are under crushing amounts of debt. It gives you protection from foreclosure and credit card debt help and reorganizes your debt into a low monthly payment that you can finally handle. In order to get all these benefits, however, you do have to follow a few rules.

So, you want to buy a car in during a chapter 13 bankruptcy in Missouri or Illinois? As long as you get permission from the court, it isn’t a problem. However, in order to get permission, you must prove to the court that you actually need the new car. Maybe your old one broke down. Perhaps you were in an accident and your car was totaled. Whatever the reason, you must prove a need for the car. Second, you must prove you can afford it and still pay your plan payment.

Why? The whole idea behind bankruptcy is that you will emerge from your Chapter 13 refreshed, rejuvenated, and debt free. As a St. Louis Missouri or Fairview Heights Illinois bankruptcy attorney will tell you, if you incur more debt during your bankruptcy, it isn’t included in your bankruptcy. The court—and your Missouri or Illinois bankruptcy lawyer, for that matter—just wants to make sure you don’t find yourself unable to continue your Chapter 13 with the addition of a car payment to your budget.

Sure, Chapter 13 bankruptcy may seem complicated, but under the guidance of a Wentzville or St Louis Missouri bankruptcy attorney, it is easy to follow the rules. Still not sure if Chapter 13 bankruptcy is right for you? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

What If I Ignore Objections to My Chapter 13 Plan? | Chapter 13 Rules

questions@castlelaw.net (Blog Author)30214 — Tue, 20 Apr 2010 08:00:00 EST

Trying to navigate a bankruptcy by yourself is not easy. There are many opportunities for your case to get dismissed and, if you aren’t educated and careful, it will definitely happen to you. One of the most common ways to get your case dismissed is to ignore any objections to confirmation.

In between a 341 hearing (creditors’ meeting) and a confirmation hearing, the trustee and the creditors file any objections they have to your proposed Chapter 13 plan. These objections must be addressed although not necessarily accepted. However, arguing with the bankruptcy court about your Chapter 13 plan is certainly difficult without a St. Louis bankruptcy attorney.

Whether you decide to amend your plan to cure the objections or fight for what you think is right, you must remember not to ignore the objections or the law. If you do so and the Judge does not confirm your Chapter 13 plan, you will risk dismissal. And if your case is dismissed, the protection from foreclosure, credit card debt help, and relief from creditors that you had been waiting for will all disappear.

As you can see, filing by yourself or even filing with an experienced St Louis bankruptcy attorney is no easy feat. Regardless of whether you hire an attorney or not, you still need to be educated on the most common mistakes that are made during a Missouri or Illinois Chapter 13 case. You can request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to begin your education.

What Happens If the Trustee Objects to My Chapter 13 Plan? | Chapter 13 Rules in Missouri and Illinois

questions@castlelaw.net (Blog Author)29762 — Fri, 09 Apr 2010 08:00:00 EST

One of the most important mistakes to avoid when filing a Chapter 13 in Missouri or Illinois is failing to make a plan that will be confirmed. Although it sounds easy to write a Chapter 13 payment plan, it is probably one of the most common reasons a case gets dismissed.

In between your 341 hearing and your confirmation hearing (which I will discuss in the next segment), the Trustee or any creditor listed in your case will file any objections he has to your plan with the court. It is then your attorney’s job to fix any problems or errors with your plan and get it into the court to be confirmed or to make legal arguments to the judge to overrule the objection.

Many bankruptcy attorneys in St. Louis can’t seem to get amended plans on file in a timely manner to fix objections and get confirmed. I have had the privilege of having the highest number of confirmed cases in Missouri over the last 16 years. How? I have practiced in front of the same judges day in and day out for 16 years and can predict their rulings fairly well at this point.

As you can see there are quite a few mistakes that can be made if you are filing by yourself or with an inexperienced attorney. I discuss this mistake and many more in my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” which you can request for free today!

Payday Loans under Attack by the Missouri Legislature

questions@castlelaw.net (Blog Author)29637 — Wed, 07 Apr 2010 08:00:00 EST

For quite some time, Missouri legislators have been calling for reform of the payday loan industry. It is no surprise, either. Some 10 million Americans are getting payday loans, making the industry boom faster than a fast food chain.

Why are payday loans such a hot topic? Payday loans come with fast due dates and extremely high interest, which only gets higher if you don’t pay it back on time. Statistically, people who take these loans out are led into financial ruin even faster.

In an attempt to curb irresponsible lending and bad individual choices, the government seems to have taken an interest in the payday loan industry. You, however, may want to stay far away. For most, payday loans mean nothing but trouble.

The Financial Institutions Committee allowed representatives from the payday loan industry to present their arguments in favor of the payday loan. The representatives did not, however, discuss the latest bill against payday loans, which calls for more time to pay them back and a substantially lower cap on the interest rate.

If you are in financial trouble, you may want to start researching how much debt is too much and what safe moves you can make to take care of yours. Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

What If You Fail to Provide Tax Returns or Proof of Income to the Trustee? | Chapter 13 Rules

questions@castlelaw.net (Blog Author)29636 — Wed, 07 Apr 2010 08:00:00 EST

If you’ve already made it through the eligibility requirements, credit counseling, and the actual filing of your case, you may think it is time to take a breather. If you are filing a Missouri or Illinois Chapter 13 by yourself, though, the hurdles will continue to come.

You must provide copies of your tax returns and your last 6 months proof of income to the trustee before your 341 meeting (Creditors’ meeting). Failure to do so will result in your case being dismissed. Unfortunately, it is easy to fail at this task. While getting your tax returns may not be terribly difficult, getting your last 6 months of proof of income is tedious and hard if you don’t know what the trustee is looking for.

If you are filing your Missouri or Illinois Chapter 13 with a St. Louis bankruptcy attorney, make sure that he or she has someone on their staff who is designated for doing this for you. Remember, if all proof of income isn’t provided in a timely matter, it could cost you your case.

Know what kind of mistakes you could be making before you make them. Whether you are filing by yourself or with a St. Louis bankruptcy attorney, you’ll need to know the common errors that cost people their cases and, thusly, their bankruptcy protection. Request a free copy of my Missouri and Illinois Chapter 13 bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” so you can avoid the same mistakes.

Layoff Report Now Available for Former Employees of KV Pharmaceutical

questions@castlelaw.net (Blog Author)29556 — Tue, 06 Apr 2010 08:00:00 EST

Layoffs are among the top reasons that people file Missouri and Illinois bankruptcy. A layoff is actually a catastrophic life event, leaving you and your family with an unsecure financial future. If you are living paycheck to paycheck or even close to it, you could find your bills quickly turning into crushing amounts of debt.
You never thought you’d need protection from foreclosure, credit card debt help, or relief from your harassing creditors until you were laid off. Now, what can you do?

Luckily, you can ask for the help of a St. Louis, Missouri or Belleville, Illinois bankruptcy attorney. After the US Fidelis bankruptcy, I put together a special layoff report to help people who suffered job loss survive the hard road ahead. Now, I’ve prepared a special version just for the former employees of KV Pharmaceutical.

Though this economy has caused us all to feel a little less secure, it is hard to be truly prepared for a layoff. The best thing you can do for you and your family is to get educated on your options for relief. Missouri and Illinois Chapter 7 or Missouri and Illinois Chapter 13 may not necessarily be the right move but how will you know unless you start researching?

You can request a free copy of my layoff report today by filling out our online contact form below.

What Happens if You Fail to File the Required Documents? | Chapter 13 Rules

questions@castlelaw.net (Blog Author)29394 — Fri, 02 Apr 2010 08:00:00 EST

As you may have learned in our third installment on Chapter 13 Rules in Missouri and Illinois, you must file the correct documents to proceed with a successful Chapter 13 bankruptcy. But what happens if you don’t?

If you are missing any documents when you file the case, you will be given 14 days to file the missing items filed. If you do not meet the deadline, your case will be dismissed. I can’t tell you how many times I have seen attorneys file only the minimum documents to get their clients immediate protection but then fail to meet the 14 day deadline, ultimately failing their clients.

My policy at Castle Law Office is to immediately file all required documents at the same time to eliminate this
common and dangerous pitfall. We keep track of all the essential pieces to your Missouri or Illinois Chapter 13 bankruptcy. It is sad to have a person come in with a case that was dismissed through no fault of their own. Make sure you and your attorney know what few remaining pieces of a case need to be filed and when.

Remember to find an attorney who already has a tried and true system in place for filing documents. You wouldn’t want to risk protection from foreclosure, credit card debt help, or relief from your creditors for your family, would you?

What other things should you look for in a great St Louis, Missouri or Belleville, Illinois bankruptcy attorney? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn what to expect out of a great bankruptcy attorney.

What Happens If You Don't Do Your Credit Counseling? | Chapter 13 Rules

questions@castlelaw.net (Blog Author)29296 — Wed, 31 Mar 2010 08:00:00 EST

In order to be eligible to file for a Chapter 13 bankruptcy, you must first complete a credit counseling session. You must also complete a second financial management course, called a “debtor education” course, after your case is filed. While these sessions are not the only requirements for a Chapter 13 in Missouri or Illinois, but they are incredibly important because they benefit you.

If you don’t take the first credit counseling session, your St Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney can’t file your case. That means the protection from foreclosure, credit card debt help, and the relief from your creditors that you and your family had been so eagerly anticipating will be delayed.

If you don’t take your personal financial management course after your case has been filed, it can cause your case to be dismissed without a discharge. The discharge is the release of your personal responsibility for your debts. Can you imagine going all the way through a bankruptcy case and not getting the big benefit at the end?

A qualified and experienced St Louis or Wentzville Missouri bankruptcy attorney understands that credit counseling is an essential part of a Chapter 13 bankruptcy, and they will help you through the process. After all, a great Missouri or Illinois bankruptcy lawyer wants to make sure he or she is doing everything they can to ensure you get the relief you need from your debt.

Wondering what else to expect from a great bankruptcy attorney? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out more!

How Does an Automatic Stay Give Me Protection from Foreclosure?

questions@castlelaw.net (Blog Author)29217 — Tue, 30 Mar 2010 08:00:00 EST

First, let’s discuss what an “automatic stay” actually is. The automatic stay kicks in the moment you file for bankruptcy. What it does is even more powerful. It stays or stops your creditors from taking any more action against you. They must stop making calls or sending letters to your house, they cannot file a lawsuit regarding your debt, they can’t refuse to release information about your debt, they can’t repossess your assets, they cannot proceed with a foreclosure, they cannot disconnect your utilities and they cannot garnish your wages.

Whew, that is a long list of things that they cannot do! How can Missouri and Illinois Chapter 13 bankruptcy be that powerful? Bankruptcy is a federal law that allows hard working Americans to get the relief they need from their creditors, their debt, and to help people get back on their feet and move on with their lives. It is called a fresh start.

Illinois and Missouri Chapter 13 bankruptcy doesn’t just provide protection from foreclosure. If you’re wondering what else a St. Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney can do for you, request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

What Are the Debt Requirements for Chapter 13? | Chapter 13 Rules

questions@castlelaw.net (Blog Author)29196 — Tue, 30 Mar 2010 08:00:00 EST

Chapter 13 bankruptcy, as with anything worth your time, comes with a set of rules you must follow in order to get the benefits of filing. First, you must determine if you are even eligible to file. One of the first requirements you should look at to determine if you are eligible to file a Chapter 13 is the amount of debt you have. What does this mean?

In a Chapter 13 bankruptcy in Missouri and Illinois, your unsecured debts (like credit cards and medical bills) must not exceed $336,900. Your secured debts (like your mortgage or car loan) must not exceed $1,010,650. If you can stay between the lines, you are that much closer to getting protection from foreclosure, credit card debt help, and ultimately using the Chapter 13 rules to get relief from your creditors.

Missouri and Illinois Chapter 13 is really meant to help the average, hard-working family get out from under crushing amounts of debt. If you aren’t sure if you meet the requirements to file bankruptcy, it is always best to check with an experienced and qualified St. Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney. Many offer free consultations, during which they’d be happy to discuss whether you are eligible to file for Chapter 13. Not ready for a free consultation? Take the time to educate yourself on whether bankruptcy is really the right move for you. Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

How Will Missouri or Illinois Bankruptcy Affect Alimony Payments or Debt?

questions@castlelaw.net (Blog Author)29132 — Mon, 29 Mar 2010 08:00:00 EST

If your ex-spouse is filing for Missouri or Illinois bankruptcy, you may be worried about how your alimony payments will be affected. In both Chapter 7 and Chapter 13 in Missouri and Illinois, alimony debt is non-dischargeable, meaning it cannot be eliminated in a bankruptcy.

Now, that is not to say that bankruptcy does not offer some sort of help for this situation. Missouri and Illinois Chapter 13 bankruptcy lets you catch up any back alimony payments but you must continue to make your current alimony payments.

Alimony, like child support, is family support that bankruptcy cannot override. However, a St Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney will typically help you free up enough of your income to be able to make those alimony payments comfortably.

Once you get into debt, every bill or payment you have to make is a burden. Bankruptcy relieves the burden and allows you to get back to a normal life or one where you aren’t constantly drowning in debt. The effect that an alimony payment will make on your budget after you get a handle on your debt will certainly be less.

Still wondering, “Should I file bankruptcy?” Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn the kind of debts that can be eliminated and how bankruptcy might be able to change your life for the better.

East St. Louis Considers Bankruptcy Amid Budget Woes

questions@castlelaw.net (Blog Author)29016 — Sat, 27 Mar 2010 08:00:00 EST

While thousands of families in Missouri wonder if bankruptcy is the right path to take, the city of East St. Louis is also wondering if bankruptcy is the right choice for them. Despite the fact that the city is already in financial oversight, East St. Louis is suffering from major budget problems and could be on the road to bankruptcy. In fact, the city has been operating without a budget since the start of 2010, with no change in sight.

The city has asked to borrow $1 million from the city’s police and fire department’s pension fund in order to save city jobs, but this is a temporary fix at best. Although it is clear to everyone that the city needs to change its financial practices in the long term, steps to make changes are coming slowly or not coming at all.

What's So Dangerous about Debt Settlement? | St. Louis Bankruptcy Attorney

questions@castlelaw.net (Blog Author)28989 — Fri, 26 Mar 2010 08:00:00 EST

Debt settlement has always been somewhat uncertain; there is no guaranteed or definite result for any given case. There are several dangerous points about a debt settlement office in St. Louis, the first of which being that they often make promises that are too good to be true, literally. Walking up to your creditors and simply saying, “I’m not paying you!” is not getting rid of your debt, it is an attempt at negotiation.

While many of the advertisements encourage you to believe in their system, the facts are that they can only settle your debt for pennies on the dollar. To do so, they must have a lump sum of cash to offer, which could take months or even years to build up. Until that negotiation, you can just add a debt settlement office to the list of people you have to pay every month.

Another dangerous part of debt settlement is that many of the companies turn out to be scams. The news is filled with stories about people in debt who only sank further after they found out their company was a scam. The government releases warnings about debt settlement but many don’t reach the ears of consumers until it is too late.

Even if they do settle your debt quickly and the company isn’t fraudulent, you still run the risk of not being able to really get out of debt. You may still need protection from foreclosure, credit card debt help, or relief from a wage garnishment after the debt settlement.

Don’t get stuck in the uncertain world of debt settlement. Find out your other options by requesting a free copy of my Missouri and Illinois debt guide, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Can I Reopen My Chapter 13 Bankruptcy in Illinois?

questions@castlelaw.net (Blog Author)28987 — Fri, 26 Mar 2010 08:00:00 EST

You may need to reopen a bankruptcy case for a number of reasons. However, often when people refer to “reopen” they are actually thinking of “re-file.” Reopen means to open a case back up after the debtor has received a discharge and the case has been closed. Re-file means to try a bankruptcy again after your case has been dismissed without a discharge.

In Illinois, you can reopen a Chapter 13 case for several reasons, all of which your experienced and qualified bankruptcy attorney can go over with you. A reopening, however, is much more common in a Chapter 7 bankruptcy because of its short start to finish time period.

The process of reopening a case is actually one way that Missouri and Illinois bankruptcy is very similar. Don’t assume that any St. Louis law firm can handle your Illinois bankruptcy case, though. While the reopening process is similar, many other rules differ between the states and it is important for your St Louis bankruptcy attorney to understand the rules of both states. Look for free information from that attorney that applies to both states or is Illinois specific. If there isn’t any of that information available, it may be a sign that an attorney isn’t well experienced in Illinois.

There are some issues that you may have with Illinois bankruptcy, like reopening a case, that won’t be a problem as long as you have the right St. Louis. Missouri or Fairview Heights, Illinois bankruptcy attorney. How do you know if you’ve found an attorney with the right experience to handle your case? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn the secrets to finding the best attorney in your area.

What Should I Cut Out of My Budget to Save Money after Bankruptcy?

questions@castlelaw.net (Blog Author)28979 — Fri, 26 Mar 2010 08:00:00 EST

Certainly, things like food, clothing, your home and car, and the insurance that covers them are necessary items in your budget. But, how do you decide what to cut out?

I’m sure when you are spending the money, it seems like a necessary purchase but it may not be. Write down everything you buy for one week. While it may sound like a pain, it may be the only way for you to understand what you can cut out of your budget.

It is important to remember that you may not have even known you were spending so much on things you cared so little about until you write it down. All retail stores are designed to make us buy things that we don’t actually need. Often, they place candy, movies, sodas, and magazines right by the checkout line to entice you to buy them.

Saving money in your life after bankruptcy involves a lifestyle change. A St. Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney doesn’t want to only eliminate your debt, he or she also wants to help you avoid ever having to file bankruptcy again. Do you really want to put your family in a position where they need protection from foreclosure, credit card debt help, or relief from harassing creditors again? If you spend responsibly, you don’t have to.

Is an Illinois or Missouri Bankruptcy Book a Better Place to Start than a Free Consultation?

questions@castlelaw.net (Blog Author)28918 — Thu, 25 Mar 2010 08:00:00 EST

Like so many starting places, where you start often depends on who you are and where you are trying to go (and, in this case, how fast you are trying to get there). Some of us make decisions slowly and cautiously, weighing all possible options before coming to a final decision. Others know exactly what they want when they find it and are ready to take the plunge. But, really, you owe it to yourself to do your homework. You may find out that bankruptcy actually isn’t the right move for you!

Both the Missouri and Illinois bankruptcy book and the free consultation with a St. Louis bankruptcy attorney are preliminary steps in your Missouri or Illinois Chapter 7 or Chapter 13 bankruptcy case. If you aren’t sure if bankruptcy is right for you, you can truly choose either but if you need immediate protection from foreclosure, want to save your car from repossession, or need to stop your wage garnishment today, most Missouri and Illinois bankruptcy lawyers would argue that you need to contact them immediately.

The book is meant for those who aren’t sure if they need relief from their debt or creditors. I welcome you to request a free copy and take my “How Do I Know If I’m in Trouble?” quiz. Don’t forget, if you know you need help with your debt today, it is a great idea to move straight to a free consultation.

Perhaps the most important thing is to pick a St Louis MO or Fairview Heights IL bankruptcy attorney who is willing to cater to all of your needs, whether you are making a slow or fast decision. Surely, an attorney who offers both free information and a free consultation is prepared to serve his clients no matter what it takes. And, at the end, it may make sense to come to the person who wrote the material if it relates to you and your specific situation, whoever that attorney may be.

Will My Tax Refund be the Solution to my Debt? | St. Louis Bankruptcy Attorney

questions@castlelaw.net (Blog Author)28916 — Thu, 25 Mar 2010 08:00:00 EST

Perhaps the only saving grace of tax time is the idea that you might get a tax refund. But will a little lump sum of cash be enough to give you protection from foreclosure, be a solution to credit card debt, and get your creditors off your back? Usually, the answer is no.

This is not to say that a tax refund won’t help you but, typically, it is used as a temporary band-aid instead of a permanent fix. Sure, it could stave off financial disaster for a few more weeks or even months but, when the money is gone, most people find themselves at square one.

To make matters worse, your creditors may be able to go after your lump sum. If you owe the government any money for child support, taxes, or other government payments, you may find your tax refund gone before you even knew it was there. If you have other debts, creditors may garnish your wages or levy your bank accounts and a new lump sum of cash will surely be the first to go.

There is, however, a more permanent solution to your debt. Missouri or Illinois Chapter 7 bankruptcy can stop your creditors from taking action against you and help you eliminate your debt. With the help of a St. Louis, Missouri or Belleville, Illinois bankruptcy attorney, you could be doing more than just temporarily putting off your creditors. You could be making a new life for you and your family and never have to worry about losing future tax refunds again.

Still wondering, “Should I file bankruptcy?” Request a free copy of my book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to get your questions answered and get on your way to being free of your debt.

Overland Park Man's Scheme Leads Victims To Bankruptcy

questions@castlelaw.net (Blog Author)28911 — Thu, 25 Mar 2010 08:00:00 EST

In Kansas City, Missouri, a man has pled guilty in court to running a bank fraud scheme. This week 62-year-old Harris Poulikidis admitted to tricking low-income homeowners into refinancing their homes in order to pay for home improvements made by Poulikidis’ business, Roofing & Siding Plus.

In more than one of these cases, the low-income families who refinanced their homes or took out second mortgages on their homes were forced to declare bankruptcy in the wake of the scam. Poulikidis told the families that their payments would not be higher than what they had been paying.

Poulikidis faces up to ten years in federal prison and may have to pay back six families what he owes – a total that may be added to fines totaling $250,000. Of course, there is no way for the families to erase the damage done to their credit scores and credit history.

Bank fraud is just one of many ways that families are forced into bankruptcy.

Can You Surrender a Home in a Chapter 13 in Missouri or Illinois?

questions@castlelaw.net (Blog Author)28128 — Fri, 12 Mar 2010 08:00:00 EST

Most information that you find about Chapter 13 bankruptcy in Missouri or Illinois explains to you how you can get protection from foreclosure, stop your repossession, and protect your other property. But what if your mortgage payment is too much for you to handle? Can you give up your home in a Chapter 13 bankruptcy?

You sure can and it may even be a good idea if you can no longer afford it. The important thing to remember about bankruptcy is that it can help you as much as you let it. Sometimes it would be better for your budget to just give up some of your property—but you have to take a realistic look at your financial future to truly understand what is important to keep and what is not.

A St Louis, Missouri or Belleville, Illinois bankruptcy attorney can certainly help you keep your home if that is what you choose to do but, always make sure you explore every option. It may be the option you never thought of before that ends up being the most beneficial to your family.

How can you find out about all your options? Start with research. Many bankruptcy attorneys will offer free consultations but the best ones will offer you free articles, bankruptcy faq, and even free publications before you step foot in an office. Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,”

One Woman Stands Up Against Harassing Creditor Calls | Fairview Heights Illinois Bankruptcy Attorney

questions@castlelaw.net (Blog Author)28121 — Fri, 12 Mar 2010 08:00:00 EST

Brandy Samuel, a Tyler, Texas woman, is suing a debt collection agency over calling her for a debt that she claims is not hers. According to Brandy, the collectors were calling between 10 and 20 times a day, each time continuing to be abusive and rude. Now, she is suing for $1,000 per phone call for punitive damages, humiliation, anger, anxiety, fear, emotional distress, etc.

While it seems that creditors have no rules to follow, that isn’t exactly the case.Brandy, like Missouri and Illinois bankruptcy lawyers, knows that the collectors may have violated the Fair Debt Collection Practices Act and could be prosecuted for their actions.

Brandy has made a very important point to the community of people that are in debt: you don’t have to put up with the harassment of creditors. If, like in Brandy’s case, they are violating the law, you can fight back. Often, though, creditors call and harass debtors without breaking any type of law. Do you still have to put up with it?

The answer is no. You can stop harassing creditor calls and get the protection from foreclosure, credit card debt help, and relief from wage garnishments that you need. How? You can stop all this by filing for Missouri or Illinois Chapter 7 or Missouri or Illinois Chapter 13 bankruptcy.

Wondering what else you don’t have to put up with when it comes to debt? Request a free copy of my book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out all the things that the credit industry has been hiding from you. It may just be the information you need to change your life.

Are There Different Consequences for Foreclosure in Illinois than in Missouri?

questions@castlelaw.net (Blog Author)28086 — Thu, 11 Mar 2010 08:00:00 EST

Receiving a foreclosure notice is scary—but the events that can happen afterwards can be even scarier, whether you are in Illinois or Missouri. To make matters worse, most people don’t know how much hot water they could actually be in after walking away from their home.

In Illinois, as in Missouri, you may have a deficiency balance if your home was sold at auction. A deficiency balance is the difference between how much you owe on the home and how much it is sold for. If you owe more than the home is auctioned for, you will owe the difference to the lender and they will try to collect it in any way possible.

So, just as in Missouri, an Illinois foreclosure can be stopped. Chapter 13 bankruptcy can give you protection from foreclosure and reorganize your debt into something you can manage for you and your family. But if you have given up your home, it’s not too late. A Fairview Heights or Belleville Illinois bankruptcy attorney can eliminate your deficiency balance—and your other unsecured debts—with a Chapter 7 bankruptcy.

Don’t get caught in a situation like a foreclosure without knowing all the facts and all your options for relief. Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn the ways you can protect your family.

US Fidelis Will Stay Open Through Bankruptcy | Wentzville Bankruptcy Attorney

questions@castlelaw.net (Blog Author)27878 — Mon, 08 Mar 2010 08:00:00 EST

Last week, a judge ruled that US Fidelis could continue to pay its 100 call center workers as one of the first moves in their bankruptcy case. The move is an attempt to keep the current customers of US Fidelis from cancelling their contracts.

While it has been ruled that US Fidelis can stay afloat, what about its laid off workers? Shocking news about the lavish lifestyle of the owners and continuing sympathy for US Fidelis doesn’t exactly provide the credit card debt help, protection from foreclosure, and relief from creditors that the laid off workers may need.

Luckily, there is a Wentzville, Missouri bankruptcy attorney willing to do what it takes to help those workers get back on their feet.

If you have been laid off from US Fidelis and your family is suffering because of it, request a free copy of my special layoff report. You could learn the options you have after a layoff, the 3 best tips for being prepared for (almost) anything and how Missouri or Illinois bankruptcy may just be the saving grace for you and your family. No one is fully prepared for a layoff. The best you can do is get educated on how you can best deal with the aftermath. Visit our contact page and fill out our online form to request your free copy of my special layoff report.

The Best Method for Weighing Your Options When Looking for Protection from Foreclosure

questions@castlelaw.net (Blog Author)27749 — Fri, 05 Mar 2010 08:00:00 EST

If you and your family need protection from foreclosure in Missouri or Illinois, you are probably thinking about your options but, which option is the best?

First, decide what is most important to you. Most people find that keeping their home and protecting their family are the most important. Plus, those that do not intend to keep their home often don’t know the consequences they could be facing even after their home is sold.

If you’ve decided to keep your home, the next question to ask yourself is: what risks can I afford to take? When getting protection from foreclosure, most people turn to either Chapter 13 bankruptcy in Missouri or Illinois or loan modification. Unfortunately, the risks involved with loan modification as of late have been too great. Many people aren’t willing to put their families at risk of getting denied their request and being left without a way to catch up on missed payments. Chapter 13 bankruptcy, on the other hand, has continued to help hard-working families get through the hard times by reorganizing their debt—and saving their home.

The final move to make when weighing your options for foreclosure is to do lots of research. Gather all the free information you can about loan modification and Missouri and Illinois Chapter 13 bankruptcy. I think you’ll find that the news about loan modification isn’t looking too good and is too risky when it comes to protecting your family and keeping a roof over your head. To research more about what bankruptcy may be able to do for you that loan modification can’t, request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Boss' lavish lifestyle leads to US Fidelis bankruptcy; Hundreds in Wentzville Still Suffering in Debt

questions@castlelaw.net (Blog Author)27706 — Thu, 04 Mar 2010 08:00:00 EST

At least 600 employees were laid off from US Fidelis during their bankruptcy. A St. Louis Post-Dispatch article may have pinpointed what caused the bankruptcy in the first place. Darain and Cory Atkinson, the two brothers who own US Fidelis, are reported to owe the Wentzville Company more than $65 million.

Apparently, the brothers used the money to finance their real estate companies and their “lavish” lifestyles. The bankruptcy filing has shown that they used company money to cover 16 relatives on payroll, plumbing work at their grandmother’s house, school tuition for nieces and nephews, and an entertainment center for the parents, among many other personal expenses.

Their spending cost 600 employees their jobs and left them to fend for themselves in this struggling economy. Luckily, there is a Wentzville, Missouri bankruptcy attorney who is prepared to help. Not only have I opened a new convenient location for Castle Law Office in Wentzville, but I’ve also put together a unique layoff report just for the former employees of US Fidelis.

Learn the things no one will tell you after a layoff, the 3 best tips for being prepared for (almost) anything and how Missouri bankruptcy may just be the saving grace for you and your family. Fill out our online contact form or call our office at 866-570-8484 to get your free copy.

UPDATE: A news story was released today on the St. Louis Post-Dispatch concerning the US Fidelis bankruptcy. It seems Judge Rendlen has ruled to allow US Fidelis are allowing current employees to be paid. What about the hundreds that have already been laid off? More to come soon.

How Important Is It to Get a Garnishment off of my Paycheck?

questions@castlelaw.net (Blog Author)27624 — Wed, 03 Mar 2010 08:00:00 EST

A wage garnishment is a common tactic used by your creditors in an attempt to collect a debt and it is one of the first things people often ask about when they come in to see me. Why is it so important to get a garnishment removed for the majority of my clients?

A garnishment can continue as long as it is renewed until the debt is paid off. For many, garnishments continue past the point they can afford to pay because they can take a set percentage of your check before you get it, regardless of other bills you have to pay, and that can be up to a shocking 25%! If you are living paycheck to paycheck or close to it, think about how having 25% of your paycheck removed every pay period will ruin your ability to support your family.

Before you know it, a garnishment can sink you into a lot more debt even faster. You could find that after a month or two of reduced pay, you are in need of protection from foreclosure, credit card debt help, and relief from those harassing creditors. Plus, a garnishment makes your employer aware of your financial trouble. For many, that is potentially embarrassing or shows the employer that they aren’t taking responsibility for their debts.

Missouri or Illinois Chapter 7 bankruptcy or Chapter 13 bankruptcy can stop your wage garnishment, stop your debt from accumulating, and help you take responsibility for your debt and the effect it is having on your family. It is no wonder that so many people request my book at the first sign that their wages are being garnished. You too can get educated about what a St. Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney can do for you by requesting my free book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Managing Debt Stress Syndrome in Missouri and Illinois

stownzen@castlelaw.net (Blog Author)27622 — Wed, 03 Mar 2010 08:00:00 EST

Debt doesn’t just take its toll on your bank account. Having serious debt problems can affect your health and well-being. It is important to take care of debt stress syndrome as soon as possible. Here are some steps from clinical psychiatrist Dr. Alan Manevitz that could help you deal with debt stress syndrome—and get past it.

1. Don’t Deny It.
The first step is always admitting that there is a problem. If you need protection from foreclosure, credit card debt help, are in fear of repossession or more, you are probably suffering from the immense stress. Face any debt related stress head on.

2. Be Proactive
Doing nothing changes nothing. No one will solve your debt problems for you. The only way to get past debt is to start getting educated about your options. In fact, you can request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to start learning about the options you have for getting debt relief.

3. Get Help
Often, debt gets to a point that it can no longer be handled. If your debt is causing you increased heart rate, high blood pressure, high paced breathing, muscle tension, or inflammation, debt syndrome has taken over your health. You can look to Chapter 7 or Chapter 13 bankruptcy in Missouri and Illinois for the help you need.
Debt stress syndrome is very serious and needs to be treated as such. If you are suffering from debt stress syndrome and need to find relief today, consider contacting the best St. Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney in your area.

Do Yourself a Favor and Don't Do-It-Yourself When it Comes to Missouri and Illinois Bankruptcy

questions@castlelaw.net (Blog Author)27487 — Mon, 01 Mar 2010 08:00:00 EST

After the story about We The People filing for Chapter 11 bankruptcy, the art of the “do it yourself” bankruptcy may be dying. If a business that provides you the Chapter 7 and Chapter 13 forms can’t stay afloat, what does that mean? To me, it means that filing without a qualified and experienced St. Louis, Missouri or Belleville, Illinois bankruptcy attorney may be too hard and uncomfortable of an experience.

Chapter 7 and Chapter 13 bankruptcy in Missouri and Illinois are wonderful tools but, if you make even one mistake while attempting to file by yourself, you could be facing a whole other load of problems. A mistake could cause a judge to deny you your discharge—and then you would have a bankruptcy on your credit report without the benefit of getting protection from foreclosure, credit card debt help, or relief from your creditors. I think that it is clear that most Missouri and Illinois residents have decided that they don’t want to take that risk.

Show your family your commitment to getting help from debt by at least getting educated about what a Missouri or Illinois bankruptcy lawyer can do for you. If you do decide to file by yourself, keep in mind that if you make an error, it could end up costing you just as much money as it would have if you had called a St. Louis, Missouri or Belleville, Illinois bankruptcy attorney in the first place. Request a free copy of my book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn everything a bankruptcy attorney should be willing to do for you.

New Credit Card Laws Give a New Look to Your Statement—and Your Credit Card Debt

questions@castlelaw.net (Blog Author)27306 — Thu, 25 Feb 2010 08:00:00 EST

As some of you know, the majority of the new laws put forth in the Credit CARD Act of 2009 went into effect on Monday. Banks will be required to start changing your statements by July 1st of this year, but many are starting early with the new format. Here are a few of the changes you may be seeing in your statements:

• A clear format that highlights fees and interest.
• A box that shows you how long it will take to pay the entire balance if you only pay the minimum and how much interest you will pay as a result. In addition, there could be examples that show you how much you could save by paying more than the minimum.
• A toll free number for free credit counseling.
• Standard payments and times. You should receive your bill at least 21 days before the due date.

For some, this new format will make it easier to pay down their credit card debt. Yet, for others, it will make it easier to see how quickly they must find a solution to their credit card debt. While the new bills may put your debt in perspective, it is likely that many Missouri and Illinois credit card owners will find they need more credit card debt help than they thought.

If you need credit card debt help, Missouri or Illinois Chapter 7 bankruptcy could surely be a solution. It eliminates unsecured debt, like credit card debt, and allows you to make a fresh start for you and your family. Learn more by requesting a free copy of my ultimate debt guide, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Movie Gallery Bankruptcy Leads To Three Closed Stores In Missouri

questions@castlelaw.net (Blog Author)27279 — Wed, 24 Feb 2010 08:00:00 EST

Three Missouri Movie Gallery movie rental stores will close permanently after Movie Gallery Inc. and their parent company, Hollywood Entertainment Inc., filed for Chapter 11 bankruptcy on February 3. As part of their business reorganization bankruptcy, Movie Gallary will close almost half of their stores nationally, including stores in Jefferson City on Missouri Blvd., Fulton on Bluff St., and Columbia on Corona Rd. The company decided to close their underperforming stores in order to improve their bottom line.

Other movie Gallery DVD rental stores will remain open in Columbia, Mexico, Ashland, Moberly, Eldon, Boonville, California and Centralia, Missouri.

Hundreds of others stores have already closed around the nation in the past year as the company struggled to avoid bankruptcy. Other stores may close as the store goes through the reorganization process, though the company hopes to keep 900 stores open through its bankruptcy.

Southern Illinois Names New Bankruptcy Judge

questions@castlelaw.net (Blog Author)27278 — Wed, 24 Feb 2010 08:00:00 EST

According to St. Louis Today, Southern Illinois has named a new bankruptcy judge for U.S. Bankruptcy Court for the Southern District of Illinois. Attorney Laura Grandy is the first woman to be appointed as a judge in this IL district and will be the only federal bankruptcy judge in the area. She graduated from St. Louis University School of Law in 1984 and has worked in Belleville, IL, at a bankruptcy law firm.

Grandy, who resides in Caseyville and is 51 years old, will replace US Bankruptcy Judge Kenneth J. Meyers. Meyers has been promoted to senior status and in this position will only handle a small number of special cases. Grandy will work in the Federal Courthouse in East St. Louis.

For the last 18 years, Grandy has been the Chapter 7 Panel Trustee for the bankruptcy court and often speaks and writes on the topic of bankruptcy.

My Spouse Won't Sign My Bankruptcy Papers. What Now? Ask Me.

questions@castlelaw.net (Blog Author)27266 — Wed, 24 Feb 2010 08:00:00 EST

So, your spouse isn’t on board with the new direction you’ve taken to get your life back on track? The answer could simply be to explain to them the benefits of bankruptcy, like getting protection from foreclosure, getting credit card debt help, and stopping your creditors from taking action against you. In fact, you can request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” and read the benefits of bankruptcy together. But, if your spouse still thinks that the many myths surrounding Missouri and Illinois bankruptcy are true, you may have to further explain what will happen if you don’t take action

Now, if your spouse isn’t legally responsible for any of your debts, he or she may not be directly affected. After your Missouri or Illinois bankruptcy is discharged for you, creditors could still come after your spouse for any loans he or she cosigned with you and levy any of your joint bank accounts.

The best decision would be for both of you to speak with an experienced St. Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney. A qualified attorney would be able to help you to decide if it would be more beneficial for you to file together or if one of you could just file. In fact, most Missouri and Illinois bankruptcy attorneys offer free consultations for that very purpose. Bankruptcy can be complicated but, with the right attorney, you can find the right plan to get the freedom from debt for which you’ve been praying.

Are Layoffs a Common Reason to File Missouri or Illinois Bankruptcy?

questions@castlelaw.net (Blog Author)27093 — Mon, 22 Feb 2010 08:00:00 EST

I consider a layoff to be a catastrophic event, just like a medical emergency, death in the family, or divorce. Catastrophic events are usually what lead people into Missouri or Illinois bankruptcy. No one sets out wanting to file a Chapter 7 or Chapter 13 in Missouri or Illinois but, when tragedy strikes, life continues to happen. Sometime’s the everyday costs of living can be just too much to handle on top of a divorce or layoff. That is when many decide to call a St. Louis, Missouri or Fairview Heights, Illinois Bankruptcy attorney.

While no one typically expects to be laid off, it is important that you be prepared for any situation that may arise. This economy is volatile—even unpredictable. The best thing you can do is get educated before it happens to you. Request a free copy of my debt guide book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” and learn what you need to know to be prepared for anything that might come your way.

Remember, bankruptcy is a powerful tool to help people who have suffered from a layoff, divorce or other life changing event. It handles your debt in a way that helps you protect your family and get back on your feet. When bad things happen in life and no one else is there to help you, bankruptcy can. Most people think of it as the end, when it really marks a new beginning. If you’ve been laid off, don’t hesitate to contact a Missouri or Illinois bankruptcy lawyer to learn what your options are.

Bankruptcy after Foreclosure: Still an Option for Your Family

questions@castlelaw.net (Blog Author)26961 — Fri, 19 Feb 2010 08:00:00 EST

You may be thinking that you can’t file bankruptcy because you’ve gone through a foreclosure. Luckily, that isn’t true. Bankruptcy is, in fact, a very useful option for families that have lost their home in foreclosure and, in fact, it may even be a good idea.

When the lender forecloses on a home and sells it at auction, there is sometimes a balance leftover. In today’s housing market, this is almost a certainty and can leave you owing tens of thousands of dollars for a home you don’t own anymore. If the home is sold for less than you owe on it, the difference between those amounts is still a debt that you owe. The lender can take any action against you that it sees fit—and you are powerless to stop it, unless you turn to Missouri and Illinois Chapter 7 bankruptcy.

A Missouri or Illinois bankruptcy lawyer can help eliminate the debt you still owe on your house. He or she can also provide a solution to credit card debt, eliminate your medical bills, and stop wage garnishments and harassing phone calls.

Chapter 7 bankruptcy in Missouri or Illinois is powerful and an experienced St. Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney can use that power to get you the relief you need from debt. Wondering what else Chapter 7 can do for you? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Our Very Own St. Louis Bankruptcy Attorney James Brown Featured in the Wall Street Journal!

stownzen@castlelaw.net (Blog Author)26866 — Wed, 17 Feb 2010 08:00:00 EST

Castle Law Office owner and founder James Brown has been featured in the Wall Street Journal for his knowledge in Missouri and Illinois bankruptcy and the issues facing average American families in this difficult economy.

So, what did Mr. Brown have to say to the WSJ? When asked about advice he had to help businesses in the current economy, he responded, "In a changing economy, it's time to get lean and mean. Big business does it all the time, but consumers should do the same. Eliminate debt, restructure your budget and make some sacrifices until the economy improves. Don't overlook bankruptcy protection as the most powerful tool in your toolbox to help position yourself to get through tough times."

The interview was part of James' selection as one of America's Premier Experts, for which he also co-wrote now best-selling book, "Shift Happens."

The staff here at Castle Law Office along with James' wife Sherrie and children Ryan, Tyler, and Devyn would like to congratulate James on his inclusion in the widely distributed newspaper! We hope his inclusion can inspire business owners across America (and especially Missouri and Illinois!) to keep their chins up and their eyes forward as we wade through this tough economy.

How Can You Find Recommended Bankruptcy Lawyers in St. Louis?

questions@castlelaw.net (Blog Author)26861 — Wed, 17 Feb 2010 08:00:00 EST

Getting a recommendation for a St. Louis, Missouri bankruptcy attorney isn't as easy as it sounds. Who do you trust? How do you know what a good recommendation is? You don't want to leave the fate of your financial future in the hands of just anybody. Here are a few pointers when you are trying to sort through attorneys to find the perfect one for your case.

• Find an attorney with significant case results. If he or she has a lot of clients who have obtained a discharge, it is a pretty good indicator that they are experienced and qualified. Don't be afraid to ask him or her. In fact, interviewing a few attorneys before you hire them is a good idea and you can include your question about case results in the interview. You can also check for satisfied clients by looking for client testimonials on their website or other literature that they offer.

• Get a referral from an attorney you know. If you know an attorney at a St. Louis law firm, he or she will probably be able to direct you to an attorney that specializes in your area of need. But, make sure you ask questions about the name given. Many attorneys will simply refer to a friend or relative, even if they don't have much experience.

• Look for free information. Look for a Missouri or Illinois bankruptcy lawyer that regularly updates his or her website with articles, blogs, and bankruptcy faq or even free publications like my Missouri and Illinois bankruptcy book, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know." This way, you can find out about his or her knowledge and experience even before you interview him or her. Providing good, honest, useful information at no charges so you can make a truly informed decision before you even step in the door is a good sign that an attorney isn't just interested in getting you in and signing you up.

Can you get fired for filing Missouri or Illinois bankruptcy?

questions@castlelaw.net (Blog Author)26821 — Tue, 16 Feb 2010 08:00:00 EST

It's natural to worry about your job; after all, it is your livelihood. Since bankruptcy was created to protect the average American suffering under overwhelming debt, there is also protection built into the bankruptcy code for your job. Anyone filing bankruptcy is protected by law from being terminated because of the filing itself. However, since Missouri is an "at-will employment" state, which means that an employer can fire an employee for any reason they want as long as it isn't illegal, you would still be well-advised to keep a clean record with your boss.

While your boss may not fire you because of your bankruptcy, you don't want to give him any other reason to fire you. Surely, if you are doing what you are supposed to at your job and showing up on time every day, you aren't at much risk of losing it, even if you file for Missouri or Illinois Chapter 7 or Chapter 13 bankruptcy. (Worried about how bankruptcy will affect your security clearance? Read my special report.)

As most Missouri and Illinois bankruptcy lawyers will tell you, bankruptcy is a responsible decision that people make to get protection from foreclosure, credit card debt help and relief from harassing creditors for them and their family. Still asking yourself, "Should I file bankruptcy?" Request a free copy of Missouri and Illinois bankruptcy book, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know," to learn the warning signs of too much debt, what you need to know about bankruptcy, and how you can find the best St. Louis, Missouri bankruptcy attorney in your area.

Paying Your Credit Card Before Your Mortgage? You May Need Missouri or Illinois Bankruptcy Faster Than You Think

questions@castlelaw.net (Blog Author)26626 — Fri, 12 Feb 2010 08:00:00 EST

It seems that consumers all over the U.S. are putting more stock in having a credit card than a home for their families. A recent study from TransUnion reported, "the percentage of Americans who were current on their credit cards but behind on their mortgage increased to 6.6 percent in the third quarter of 2009, up from 4.3 percent in the first quarter of 2008. Meanwhile, the share of consumers making mortgage payments on time but behind on their credit cards moved in the opposite direction, sliding from 4.1 percent to 3.6 percent over the same time period."

Alarming, huh? It seems these "strategic foreclosures" may be in the minds of more than just a few homeowners. The idea behind it is that a credit card can pay for your basic needs like food, clothing, and water, whereas paying on your mortgage is dumping money into a housing market that will never recover.

It seems to me that, either way, these people are in trouble. Using your credit cards to pay for essentials is typically a sign that you are in financial trouble. And if you have to choose between paying for your credit card and paying for your home, you're definitely in hot water. This home-made solution to credit card debt could leave you needing protection from foreclosure for you and your family.

If you think you might be in financial trouble, it is time to get the facts and look at your options. Request a free copy of my Missouri and Illinois bankruptcy book, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know," before you find yourself in a similar situation.

Is There a Different Strategy to Filing Illinois Chapter 7 Bankruptcy?

questions@castlelaw.net (Blog Author)26582 — Thu, 11 Feb 2010 08:00:00 EST

The ideas discussed in my previous article "Is There a Strategy to Filing Missouri Chapter 7 Bankruptcy?" are not only to be considered for residents of Missouri. But, if you are a resident of Illinois, there is some additional information that may be important.

• Make sure a St. Louis, Missouri bankruptcy attorney knows what a difference a river can make. If you decide to file Chapter 7 bankruptcy in Illinois, you may find a St. Louis law firm that you want to handle your case. Make sure that the bankruptcy lawyers at that St. Louis law firm knows how the laws differ between Missouri and Illinois—and how important it is to avoid the different mistakes that can be made in each state. It isn't unusual for a Missouri bankruptcy lawyer to accept a case in Illinois, assuming that he or she can handle it just as in Missouri. Make sure that an attorney that you choose has satisfied clients in both states, bankruptcy faq that addresses issues in both states and possibly even a location in Illinois to add to your convenience.

• Look for information specific to Illinois. There are some specific points in Illinois Chapter 7 bankruptcy that differ from Missouri—and you would benefit from finding Illinois specific information. You can request a free copy of my bankruptcy book, which includes information on Missouri and Illinois, titled, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know," to learn about some of the most important differences.

Can You Get Rid of Back Taxes with Missouri or Illinois Chapter 7 Bankruptcy?

questions@castlelaw.net (Blog Author)26496 — Wed, 10 Feb 2010 08:00:00 EST

Under certain criteria, income tax debts can be completely discharged. It's no wonder that so many people turn to Missouri or Illinois Chapter 7 bankruptcy during tax season. So, what's the criteria?

• The tax debt must be at least 3 years old from the date the return was first due.*
• Your returns or an equivalent report must have been filed 2 years prior to your Missouri or Illinois Chapter 7 bankruptcy.*
• Taxes must have been assessed at least 240 days prior to filing the Chapter 7 bankruptcy.*

When dealing with tax debt, it is important to make sure that you've met all the criteria and that your tax debt can indeed be eliminated. Having an experienced and qualified St. Louis, Missouri or Fairview Heights, Illinois bankruptcy attorney is absolutely essential for this process. The federal and state governments are no ordinary creditors and messing up a debt that you owe them could put you in a terrible position.

Wondering how you could find the best bankruptcy attorney in Missouri or Illinois? Look for an attorney that provides you with all of the free information—even free publications—that you need before you even step foot in an office. Surely, an attorney who is willing to go above and beyond to help you before you even become a client will do the same when you retain him or her as your attorney!

*These times can change and be made longer for any time in a prior bankruptcy case or while under an offer in compromise with the tax authority.

3 Actions to Take if the Repo Man is After Your Car in Missouri or Illinois

questions@castlelaw.net (Blog Author)26431 — Tue, 09 Feb 2010 08:00:00 EST

If the repo man is after your car, let’s face it; you have a limited amount of time until you have to make a plan. Here are three things to think about before you make any moves that you think may be the best for you and your family.

1. Take an honest look at your financial situation—and determine if the future is bleak. It is one thing if your situation is temporary. But, if your car is in danger of repossession, debt is probably affecting other areas of your life. Need protection from foreclosure? Need credit card debt help? This problem may be larger than just finding out how to avoid the Repo Man.

2. Look at your options. You could call your lender but, in this economy, everyone is calling his or her lender for some extra wiggle room. You might be gambling with your financial future by putting all your eggs in one basket. Missouri and Illinois Chapter 7 and Chapter 13 bankruptcy may be an option you haven’t thought of—and you can request more information about it for free by getting a copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

3. Don’t wait to take action. Whatever you do, don’t wait. If your car has been repossessed, a St. Louis Missouri or Fairview Heights Illinois bankruptcy lawyer may be able to get it back for you. But, remember, you only have a limited amount of time to take action.

Will the New Credit Card Rules Turn More People to Missouri and Illinois Bankruptcy?

questions@castlelaw.net (Blog Author)26429 — Tue, 09 Feb 2010 08:00:00 EST

The new credit laws, passed in 2009 for people that need credit card debt help, are going into effect towards the end of this month. They come with many new limits for credit card companies including allowing the consumer to close his or her account if the terms change and requiring the companies to pay off higher balance portions of your account first. So, why on Earth would these rules have more people thinking, “Should I file bankruptcy?”

While the new laws will certainly do their job in helping the average American avoid credit card debt, the credit card companies certainly won’t let the rules keep them from making profits. They will find new ways to make money—I expect those new ways will be harsher collection tactics. The amount of nasty creditor calls, wage garnishments, and other creditor actions will probably increase dramatically.

So, what does that have to do with bankruptcy? Missouri and Illinois bankruptcy can stop creditors from taking action—and help you get credit card debt help. In fact, credit card debt can usually be eliminated with Chapter 7 Bankruptcy in Missouri and Illinois. It seems that bankruptcy may be a more permanent solution.

If you are debating when to file bankruptcy, it is important for you to educate yourself on everything that bankruptcy can do for you—and how to pick the best Missouri or Illinois bankruptcy lawyer. You can start by requesting a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Want You to Know.”

"Strategic Foreclosures" May Be Putting Missouri and Illinois Homeowners into Unknown Territory

questions@castlelaw.net (Blog Author)26428 — Tue, 09 Feb 2010 08:00:00 EST

CBS recently reported that with more than 4.5 million homeowners upside down in their mortgages, people are more willing to forego protection from foreclosure and walk away from their homes. They are calling this phenomenon “strategic foreclosures” and it is appearing as a real option for some people. Should it be an option for you?

I would imagine that many of these people have not done their research. Though they are seemingly unconcerned with the effect a foreclosure will have on their credit, they couldn’t possibly be aware of the repercussions. Luckily, you can be aware. If you walk away from your home and think a foreclosure will end your responsibility, you are mistaken. If the house is sold at auction for less than you owe, you will still owe a balance. It is called a deficiency balance and it will be collected by your creditors. That means they can garnish your wages, levy your bank accounts, or go after your other property to get it back.

Before you make a decision like giving up protection from foreclosure, research all of the consequences of your actions. Most St. Louis Missouri and Fairview Heights Illinois bankruptcy attorneys will offer you a free consultation to talk about alternatives to “strategic foreclosure.” The best ones, however, will offer you free information before you even come in. Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn what to look for in an attorney, what your options are for protection from foreclosure, and more.

Getting Car Loans with a Foreclosure on Your Credit in St. Louis, Missouri

questions@castlelaw.net (Blog Author)26067 — Tue, 02 Feb 2010 08:00:00 EST

While it is clear that a foreclosure may have a negative effect on your credit report, it is not always clear what exactly that means. Can you still buy a house? Can you still buy a car? Well, it isn’t as simple as just being able to buy a car or home; it is about the conditions under which you can secure a loan. With a foreclosure on your credit, most car lenders will still let you buy a car, but at a very inflated interest rate.

The maximum interest rate, as of the date of this post, in Missouri is 26% and Illinois is even higher. If you try to secure a loan with a foreclosure on your credit report, you will surely be charged close to the cap, if not the cap itself.
If you are thinking that bankruptcy has the same effect on your credit report, you may be mistaken. Filing Chapter 13 bankruptcy in Missouri and Illinois to get protection from foreclosure is usually considered a responsible move, despite the myths that tell you differently. It may, in fact, be easier to secure a car loan with a bankruptcy on your credit report than it would be with a foreclosure.

Now, is this always true? Probably not. There are always instances where lenders go against the grain, but if you can get protection from foreclosure and keep it off your credit report, why wouldn’t you? Wondering what else a Missouri or Illinois bankruptcy lawyer can offer you with Chapter 13 bankruptcy? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Do You Lose Your House in a Chapter 7 Bankruptcy?

questions@castlelaw.net (Blog Author)26065 — Tue, 02 Feb 2010 08:00:00 EST

One of the common myths surrounding bankruptcy in Missouri and Illinois is that you will lose everything you own. Because of this, people are often afraid to explore their options, leaving them without credit card debt help, relief from harassing creditors, and a way to stop their wage garnishment. This belief is simply untrue. In fact, most of our more than 30,000 clients in the St. Louis metro area don’t lose anything in a Missouri and Illinois bankruptcy.

How can you avoid losing property like your home? A very specific set of circumstances must exist for your home to even be at risk. If you have too much equity in your home, for example, the exemptions provided in a Chapter 7 bankruptcy may not cover all of it. But, a Chapter 13 bankruptcy could be a better option for you and one that a great St. Louis Missouri or Belleville Illinois bankruptcy attorney will know to offer you.

There are always exceptions to every rule—and Missouri and Illinois bankruptcy is no different; but the right St. Louis Missouri or Belleville Illinois bankruptcy attorney can help you decide the right moves to keep the things that are most precious to you. Besides, should the fact that this situation might arise prevent you from getting more information about a federal law that could get you a fresh start with your debt? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn more.

Why Wouldn't You Want Protection from Foreclosure in Missouri and Illinois?

questions@castlelaw.net (Blog Author)26064 — Tue, 02 Feb 2010 08:00:00 EST

After reading the story on Bank of America’s mixed up foreclosures, I wondered how this could happen. Does the average American consumer really not check on something as important as losing their home? Perhaps, they don’t. It seems that with the soaring foreclosure rate in Missouri and Illinois and the continually depressed economy, people are losing hope that there are any options left for help. And, it doesn’t help that the loan modification program that offered us all hope at the beginning of 2009 isn’t delivering the promised results (See Article: Loan Modification Fails More Homeowners).

Luckily, I have good news. Foreclosure doesn’t have to be the end—there are Missouri and Illinois bankruptcy attorneys right around the corner who are ready to help. Missouri and Illinois Chapter 13 bankruptcy stops a foreclosure dead in its tracks and gives a family the time and relief from debt they need to get back on track—and stay in their home.

So, if you can get the protection from foreclosure that you need to keep your family safe and healthy, why wouldn’t you get it? Request a free copy of my ultimate bankruptcy book for Missouri and Illinois, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn more about the options that you may not even know you have!

Can Obama's Plans for Change Really Help the Loan Modification Program?

questions@castlelaw.net (Blog Author)25900 — Fri, 29 Jan 2010 08:00:00 EST

Foreclosure statistics came in for 2009 at frighteningly high levels while the results of the loan modification program put forth by the government came back frighteningly low. Terrible combination, huh? It seems that the government has noticed that the loan modification program needs to be fixed if it is going to try to help the one in three homeowners who owe more on their mortgages than their homes are now worth. And, though multiple problems have now been identified with the loan modification program, there hasn’t been a clear plan put forth to fix them. Could such a plan even exist? Experts are still unsure.

Luckily, we can be sure of the ability of St. Louis and Wentzville Missouri and Southern Illinois bankruptcy attorneys to help those needing protection from foreclosure. Missouri and Illinois Chapter 13 bankruptcy stops a foreclosure and allows homeowners to get out from under the overwhelming stress of debt. Chapter 13 bankruptcy can help homeowners all over the states of Missouri and Illinois not only get protection from foreclosure but also find a solution to their credit card debt, stop car repossession, and prevent creditors from taking any more action against them and their family. Plus, it doesn’t come with some of latest dangers that are inherent in loan modification programs. Wondering if you should file Chapter 13 bankruptcy?

Visit our Chapter 13 practice page or request a free copy of my ultimate Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Bankruptcy Terms To Know: Insolvency

questions@castlelaw.net (Blog Author)25566 — Sun, 24 Jan 2010 08:00:00 EST

What does insolvency mean? Insolvency is a state in which an entity (usually a business or city) is unable to pay its bills as they become due. Insolvency occurs when a company’s debts exceed its assets or when the company does not have the appropriate cash flow to function normally. A company can be in debt without being insolvent, but once their debts begin to affect their day-to-day business, they can be considered insolvent.

Although insolvency is similar to bankruptcy, the two states are not exactly the same. The state of insolvency often leads to bankruptcy as company owners make plans to repay their debtors, pay their employees, and remedy their financial problems. However, entities that are insolvent do not necessarily have to declare bankruptcy. It is assumed that all companies, cities, and counties that declare bankruptcy are insolvent.

Is there a bankruptcy term that you don’t understand? Contact us with your Missouri and Illinois bankruptcy questions.

How Do You Know if Missouri or Illinois Bankruptcy Is the Right Option for Your Small Business?

questions@castlelaw.net (Blog Author)25465 — Fri, 22 Jan 2010 08:00:00 EST

If you are a small business owner that usually means that you’ve followed your dreams to get exactly what you want out of life. Unfortunately, the current economy is not the best climate to keep small businesses afloat and more and more businesses are closing their doors. If you have hit hard times also, you could consider Missouri or Illinois bankruptcy.

“But James, doesn’t filing bankruptcy mean I’ve given up?” No, it doesn’t. In fact, filing bankruptcy means that you’ve taken responsibility for your debts and are willing to make a change. Whether you want to give the business up or simply reorganize the debt to keep your doors open, Missouri or Illinois bankruptcy might be your best option.

As a small business owner, you can actually file a Chapter 13—or even Chapter 7— in Missouri and Illinois. A chapter 7 is typically best when the business has no future, no substantial assets, or too much debt to be able to reorganize and keep the doors open. A Chapter 13 bankruptcy reorganizes the debt to free up enough cash to get you through the hard times—and to continue on your dream. Keep in mind, though, that to be eligible as a debtor, you must have primarily consumer debt. Having your business declare bankruptcy is a separate issue and you would be well-advised to speak with an experienced Missouri and Illinois bankruptcy attorney if that is the path you must take.

Are you wondering what else bankruptcy can do for the small business owner? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Is the Illinois Chapter 7 Means Test Really Different from the Missouri Chapter 7 Means Test?

questions@castlelaw.net (Blog Author)25402 — Thu, 21 Jan 2010 08:00:00 EST

There aren’t many differences between Missouri and Illinois Chapter 7 bankruptcy. In fact, there are hardly any with the exception of the means test. Even the Chapter 7 means tests aren’t vastly different, besides the difference in median incomes and IRS expenses.

The Chapter 7 means test is made up of two parts. The first part compares the median income of a similar family structure to yours to your actual income. If your income is higher, you must move to the second part of the test. That test can be complicated but, if you have the best Fairview Heights or Belleville Illinois bankruptcy lawyer, it will not be a problem to get through. The formula determines your level of disposable income, which then determines if you are eligible for a Chapter 7 bankruptcy.

The subtle differences in Illinois and Missouri bankruptcy shouldn’t cause you a problem but are crucial for your bankruptcy attorney to know. The Chapter 7 means test determines your ability to file for Illinois Chapter 7 bankruptcy and must be performed by a qualified, experienced Illinois bankruptcy lawyer. What else should you expect out of your Illinois bankruptcy lawyer? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out what you MUST know before you hire any attorney.

The Loan Modification Program Fails to Secure Protection from Foreclosure for Another Missouri Resident

questions@castlelaw.net (Blog Author)25244 — Tue, 19 Jan 2010 08:00:00 EST

News reports have just come in that the loan modification program isn’t living up to its expectations. I had a client experience that only reinforced these reports.

A client just came in last week that was waiting on approval for his loan modification through NACA for 18 months. He was told not to make any payments for the entire 18 months. Now, he has been informed that he was not approved and has found himself $36,000 behind on his mortgage payments. His home is now pending foreclosure. Unfortunately for him, letting it fall behind that far put him in a position where a Missouri or Illinois chapter 13 bankruptcy cannot even help him, as he cannot afford to repay $36,000 during the life of his chapter 13 plan given his current income. He has no choice but to give up the home.

What is even more unfortunate about this story is that he is not the only one to find himself in this same situation. What can you do to avoid being put in this position? Well, any St. Louis or Wentzville, Missouri or Fairview Heights, Illinois bankruptcy attorney would tell you not to wait to start looking at your options. It is also not advisable to purposefully stop making mortgage payments so you can be eligible to apply for a loan modification and, in fact, as the story above shows, it is extremely risky.

This doesn’t mean that you can’t apply for a loan modification but, with only 4% of people getting approved, do you really want to take the risk? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know” to learn if Chapter 13 bankruptcy could be an option for you to save your home.

Debt Is One of the Biggest Causes of Marital Problems in Missouri and Illinois

questions@castlelaw.net (Blog Author)25242 — Tue, 19 Jan 2010 08:00:00 EST

The stress that debt can put on a marriage is overwhelming—and is the breaking point for many couples. Many couples that are in debt and do not find a solution end up in divorce. So, how can you avoid becoming part of the ever increasing divorce statistic? Bankruptcy can help get rid of the debt so you can focus on your relationship and not on an impending foreclosure, harassing creditor calls, or a possible repossession.

If a Missouri or Illinois Chapter 7 or Chapter 13 can’t save your marriage, it can still allow you to pre-plan the way your assets—and your debts—are divided. If you file for bankruptcy after a divorce, the debts that you carry from your divorce decree could be non-dischargeable; that means that you can’t get rid of them through bankruptcy. Filing bankruptcy before a divorce is final lets you handle your debts while they are still dischargeable. See my important article on the specific things to remember about filing bankruptcy before or during a divorce by clicking here.

If you are past the point of no return in your marriage, there are strategic reasons you’d want to do it first. Normally, I would recommend getting the most qualified and experienced bankruptcy attorney possible but, in this situation, it is MANDATORY that you find the best attorney in your area. Request a free copy of my Missouri and Illinois bankruptcy book to learn how to find the best attorney in your area.

The State Of Illinois: Bankrupt

questions@castlelaw.net (Blog Author)25186 — Mon, 18 Jan 2010 08:00:00 EST

Bankruptcy laws exist for a reason – but unfortunately although individuals, businesses, cities and counties can file for bankruptcy protection, states cannot. This is bad news for the state of Illinois, which has far more debts than assets and which cannot pay its bills.

Currently, the state of Illinois has a $5.7 billion budget problem – a financial issue that would send most private companies to bankruptcy court for either a reorganization or liquidation bankruptcy. In addition, the state’s liquid assets have dropped below $1 million several times. The state is looking at dire options including raising taxes and cutting state programs and services. Many fear that without bankruptcy protection, Illinois will stop receiving bids from contracts and begin paying employees with IOUs.

While many argue about the causes of Illinois’ recent money troubles, everyone aggress that Illinois’ insolvency will be a serious issue in the coming months and years.

The Best Tips for Coming back after Missouri or Illinois bankruptcy

questions@castlelaw.net (Blog Author)25111 — Fri, 15 Jan 2010 08:00:00 EST

When you’ve decided you’ve had enough suffering from your debt and it is time to file bankruptcy, the hardest part is over. Often, it is hard to see that the events leading up to bankruptcy were the truly stressful parts—and the bankruptcy filing and post-bankruptcy life is easy in comparison. There are, however, a few tips that you may want to know to keep your post-bankruptcy life easy and stress-free.

Be careful with new credit. While many people think that it is too hard to get credit after Missouri and Illinois Chapter 7 or Chapter 13 bankruptcy, this is just untrue. Getting credit is actually the easy part; the hard part is not abusing that credit.
Don’t get yourself right back into the same situation you were in before—needing protection from foreclosure, credit card debt help, and a hiding place from the repo man.

Live smart. Perhaps one of the easiest ways to not get right back into trouble with debt is to live within your means. Don’t spend excessively, keep up with your savings, and stick to your budget.

Exercise caution with credit cards. You can start with a secured credit card that is linked to your bank account. Make your payments on time and gradually build up your credit. Before you know it, you’ll be building the credit score you always wanted.

Loan Modification Group in San Diego Is Invested by the FBI for Fraud

questions@castlelaw.net (Blog Author)25024 — Thu, 14 Jan 2010 08:00:00 EST

It seems that the FDIC’s warning about the prevalence of loan modification scams may have been well needed advice. There have been many scams involving loan modification reported, including a company that victimized two Maryland women with promises of modifying their home loan. This time it was quite a few more people that fell victim to a scam. Edmundo Rubi, Joseph Encarnacion, and Ben and Gloria Hebron now face more than 54 charges, including foreclosure consultant fraud, grand theft and securities fraud, after preying of the Filipino population in San Diego. The group had been investigated by the FBI and the San Diego County District Attorney’s Office and the indictment was sealed yesterday.

It is now more important than ever to be careful who you choose to handle your finances. Since the beginning of the recession, the amount of scammers and fraudulent groups has increased rapidly. Same rule applies if you decide to pursue a bankruptcy. Don’t hire any attorney, even me, unless you first know the questions to ask to find out if he or she is experienced enough to handle your case.

More and more people are beginning to see that bankruptcy is a safer (and more powerful!) way to handle their debt. Wondering if bankruptcy is right for you? Request a free copy of my ultimate bankruptcy book for Missouri and Illinois, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” by clicking here. Careful research is required for any decision you make about your financial future these days. So, why not learn more from an experienced St. Louis Missouri or Fairview Heights Illinois bankruptcy attorney?

Can You Really Escape the Repo Man in Missouri and Illinois?

questions@castlelaw.net (Blog Author)25020 — Thu, 14 Jan 2010 08:00:00 EST

Car repossession is one of the many consequences of being in overwhelming amounts of debt. Having massive amounts of debt to contend with can leave you without a car, looking for protection from foreclosure, and searching for a solution to credit card debt. But can you make it all go away by hiding? One Arnold Missouri man learned the hard way that trying to fool the repo man was not a real way to deal with his creditors.

41 year old Alan Roderick faces state felony charges after he changed the frame on his 2005 Ford Mustang to switch the identification numbers on his car. He attempted to fool the repo man and ended up facing two counts of possession of an item with altered identification, removal of a distinguishing number from a motor vehicle, and defrauding a secured creditor.

Mr. Roderick certainly did not make the right decision, but maybe he was not aware that his car repossession could’ve been stopped with Chapter 7 or Chapter 13 bankruptcy in Missouri and Illinois. A St. Louis or Wentzville Missouri or Fairview Heights bankruptcy lawyer could have stopped his repossession without having to change the frame and hide from the repo man.

Wondering how bankruptcy could save your car from repossession or when to file bankruptcy? Request a free copy of my ultimate Missouri and Illinois bankruptcy book, “Get Out of Debt” by clicking here. With this information, You may not have to hide from the repo man anymore.

Can You Sell Your Home During a Chapter 7 Bankruptcy?

questions@castlelaw.net (Blog Author)24844 — Mon, 11 Jan 2010 08:00:00 EST

A chapter 7 in Missouri or Illinois can take as little as 90 days from start to finish. While it seems that you should be able to just sit tight, life continues on in those 90 days and you sometimes need to make a decision like selling your home. But what if you’ve already filed for chapter 7 bankruptcy? 99% of the time, there is no problem selling your home. The question is whether or not you have equity and how that will affect your case. Depending on your situation, it may even be beneficial.
But, since every situation is unique, it is best to talk to an experienced Missouri or Illinois bankruptcy attorney for free.
Some sell their homes to avoid foreclosure while others do so to catch up on their taxes. Depending on your situation, the trustee may even let you keep a portion of the money after the sale. It isn’t, as some may think, necessary to put off a bankruptcy just to sell your home.

This is yet another great example of why it is imperative to have an experienced and qualified St. Louis Missouri or Fairview Heights Illinois bankruptcy lawyer. The best lawyers will be able to help you decide which move may be in your best interest and protect any other property that you want to keep. What else should you expect from your bankruptcy attorney? You can find the answer to that question along with others like, “Should I file bankruptcy?” or “How can I find the best attorney for my case?” by requesting a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt.” To request your free copy, click here.

Should I File Missouri or Illinois Chapter 7 Bankruptcy?

questions@castlelaw.net (Blog Author)24737 — Fri, 08 Jan 2010 08:00:00 EST

Making the decision to file bankruptcy in Missouri or Illinois is not always as simple as “yes” or “no”—but it doesn’t have to be very complicated. There are a few important factors to consider before you take the plunge but, after 15 years as a St. Louis Missouri and Fairview Heights Illinois bankruptcy attorney, I know that the decision usually becomes clear after you find the right information. Here are a few reasons that you may want to file a Chapter 7 in Missouri or Illinois.

• It can take as little as 90 days. I’m sure your debt seemed to have no end but, with a chapter 7 bankruptcy, there is a foreseeable end to harassing creditor calls, foreclosure notices, and wage garnishments from which you’ve been suffering.

• You could keep most of your property, if not all, and you pay back little to nothing of your unsecured debts. One of the biggest myths about bankruptcy is that you’ll lose everything you have. Most people who file a Chapter 7 don’t lose any property at all. The role of your Missouri or Illinois bankruptcy lawyer should be to protect your property and ensure that you don’t have to pay much—or anything—to do it.

• You can finally breathe a sigh of relief. While this may seem somewhat trivial, don’t underestimate the power of stress. Filing bankruptcy means getting relief from those harassing creditors, getting credit card debt help, getting protection from foreclosure, and getting back to normal.

Still unsure? Request a free copy of my ultimate Missouri and Illinois bankruptcy book, “Get Out of Debt,” by clicking here.

How Can You Find the Right Bankruptcy Attorney in St. Louis, Missouri?

questions@castlelaw.net (Blog Author)24736 — Fri, 08 Jan 2010 08:00:00 EST

Well, naturally, I’m a little biased, but there are some good rules of thumb when searching for the right attorney to handle your Chapter 7 or Chapter 13 bankruptcy case in Missouri and Illinois no matter who you ultimately choose.

• Find an attorney who has enough experience. Experience can be the deciding factor in whether a St. Louis Missouri or Fairview Heights Illinois bankruptcy lawyer can give you protection from foreclosure, true credit card debt help, or help you keep your car. Make sure you check for client testimonials, years of experience, and actual results. Ask an attorney how many cases they’ve actually completed—it may be a sign of how much your creditors will respect your attorney.

• Look for membership in bankruptcy associations. If an attorney is truly interested in getting the latest news and best continuing education, he or she will be a member of a bankruptcy association of some sort. Most are members of the National Association of Consumer Bankruptcy Attorneys (NACBA) but also check if they are members of the National Association of Chapter Thirteen Trustees (NACTT) and the American Bankruptcy Institute (ABI).

• Check for publications. The best bankruptcy attorneys are constantly providing free and current information about bankruptcy to anyone looking. A good measure of how much they know is finding articles, blogs, and news stories related to bankruptcy. If there are any published books, it is an added bonus. This is another sign of respect that the legal community has for his or her skills and experience.

How Will the Foreclosure Rates in 2010 Compare to 2009?

questions@castlelaw.net (Blog Author)24735 — Fri, 08 Jan 2010 08:00:00 EST

Despite efforts by the current administration, experts are predicting that foreclosure rates will remain on the rise for 2010. It seems that we may not have hit bottom yet, with an expected peak in late 2010. According to the Mortgage Bankers Association, the amount of people that are one or more mortgage payments behind or have already entered into foreclosure rose 13.2% in 2009. They predict joblessness to peak in mid-2010 and a foreclosure peak to follow.
St. Louis Missouri and Illinois’ metro-east are right there with the rest of the country with roughly 1,700 foreclosures a month in St. Louis city alone. So, where can these countless victims get the protection from foreclosure they need?

Luckily, there are St. Louis Missouri and Fairview Heights Illinois bankruptcy attorneys who are prepared to help. Since a chapter 13 bankruptcy in Missouri and Illinois carries the power of the federal government, it can stop homes from being sold at auction and prevent creditors from taking any further action.

How can you choose the best St. Louis MO or Illlinois bankruptcy lawyer? While many of these attorneys offer free consultations, it is best to look for an attorney who offers bankruptcy faq, articles, blogs, and free publications to educate you before you even step foot in an office. You can request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” by clicking here.

What Is There to Fear about Chapter 7 Missouri or Illinois 341 Meetings?

questions@castlelaw.net (Blog Author)24734 — Fri, 08 Jan 2010 08:00:00 EST

The idea of meeting with an official from the court or any creditor is often scary for people filing chapter 7 bankruptcy in Missouri or Illinois. And part of my duty as a St. Louis Missouri and Fairview Heights Illinois Bankruptcy attorney is to remove some of that fear and make the process easier. After all, getting protection from foreclosure and credit card debt help should be a relief and not a stressful situation. But, surprisingly enough, the meeting of the creditors, or the 341 meeting, isn’t usually a stressful situation. In fact, creditors rarely show up to the meeting.

Why, after spending weeks or even months harassing you by phone and mail, does a creditor not usually bother to show up to your Chapter 7 Missouri or Illinois 341 meeting? There isn’t much they can do. There are usually several meetings scheduled in a 30 minute time period and the trustee will only meet with each debtor for a brief period of time. Most creditors know that they can’t really ask you any questions or get anything accomplished at these meetings because their debt is discharged whether they like or not. So, unless there is fraud going on, it is very rare you will ever be questioned by a creditor.

Instead, most of the concerns and questions that creditors have are dealt with prior to hearings by email and mail. And that is just another example of why it is important to have an experienced Missouri or Illinois bankruptcy lawyer. The best bankruptcy attorneys can arrange your affairs outside of the hearings so you can continue to focus on getting your fresh start and building a new life.

Do you have more questions about the bankruptcy process? The ultimate Missouri and Illinois bankruptcy guide, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” is available for free. You can request your free copy by clicking here.

Debt: The Good, The Bad, And The Ugly

questions@castlelaw.net (Blog Author)23968 — Sat, 26 Dec 2009 08:00:00 EST

This December we are focusing our bankruptcy library articles on debt: what is good debt, what is bad debt, and how you should go about paying off your debts. The vast majority of Americans have some form of debt, whether it is a mortgage, a car payment, or credit card debt, and as many as 20 percent of those living in the United States are carrying too much debt.

In three separate articles this month, we are exploring the different types of debt and the best strategies for paying off debt. In some cases, individuals and families can re-budget and fight debt on their own. In other cases, the best option to escape from debt and reestablish a normal life is to petition for bankruptcy. Hopefully, these articles can help you better understand your own debt situation and your best plan of action.

Beware of Foreclosure Protection Schemes if You Are In Debt in Missouri and Illinois

questions@castlelaw.net (Blog Author)23937 — Thu, 24 Dec 2009 08:00:00 EST

Two women in Maryland learned that foreclosure protection schemes are not always what they seem—and they learned it the hard way. After falling behind on their mortgage payments due to medical bills , the women clung to an offer labeled “Your Best Hope has Just Arrived.” But instead of getting hope, the women were tricked into signing away the titles to their homes and were left facing eviction. The fraudulent mortgage company was caught and ordered to pay $100,000 to the two victims as restitution.

As any St. Louis Missouri or Illinois bankruptcy attorney could tell you, looking for protection from foreclosure is tricky business. The amount of loan modification and debt settlement scams has simply gone through the roof since the recession. Often, these firms promise to save your home without telling you they are charging hefty upfront fees, offering no legal protection, and putting you in dangerous situations like these two Maryland women.

What these two women didn’t know was that Missouri or Illinois Chapter 13 bankruptcy could have protected their homes from foreclosure, while also helping them stop wage garnishments, getting them credit card debt help, and preventing their creditors from taking any more action against them. To find out more about what bankruptcy is and how it can help you, you can request a free copy of the ultimate Missouri Bankruptcy book, written from my over 15 years of experience as a Missouri and Illinois Bankruptcy lawyer. Saving your home and protecting yourself from foreclosure rescue schemes may just be a click away.

Air Ambulance Trips May Lead to Chapter 7 or Chapter 13 Bankruptcy in Missouri or Illinois

questions@castlelaw.net (Blog Author)23934 — Thu, 24 Dec 2009 08:00:00 EST

When you are in an emergency situation with a life or lives a stake, the first thought on your mind is often not how much it will cost. We’ve become a society focused on the value of an individual life—often leading us to make any effort, no matter the cost, to save a life. And while each life is certainly worth saving, we tend not to think about the financial situation that will result for the injured party. An article on MSNBC reports that an estimated 550,000 patients are flown by medical helicopters and small airplanes for emergencies including car accidents and heart attacks, among other things. The price varies—costing the victim anywhere from less than $12,000 to $25,000 per flight.

It is no wonder that the number of chapter 7 and chapter 13 bankruptcy filings in Missouri and Illinois due to medical debt has been on the rise. As a St. Louis Missouri bankruptcy attorney, I’ve seen more and more cases where people have to be protected from foreclosure, find a solution to credit card debt, and stop their cars from being repossessed by filing bankruptcy in an effort to pay their medical bills.

If you are in a similar situation, you may be wondering, “Should I file bankruptcy?” You can look at our bankruptcy FAQ or request a free copy of the ultimate Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out if bankruptcy is right for you. The information is free but the ability the knowledge may be invaluable to getting your medical bills paid.

Could a Family Bankruptcy Have Been the Key to Shakira's Success?

stownzen@castlelaw.net (Blog Author)23933 — Thu, 24 Dec 2009 08:00:00 EST

In a recent interview with CNN, Shakira told the tale of her own modest upbringing. When she was 8 years old in Barranquilla, Colombia, her parents fell on hard times and took responsibility for their financial situation by filing for bankruptcy. She had a hard time embracing the bankruptcy as a child but had a change of heart when her parents showed her what their lives could be like had they not filed bankruptcy.

What 8 year old Shakira didn’t see is that her parents knew when to file bankruptcy. They took responsibility for her and themselves and freed themselves from the consequences of debt. Getting protection from foreclosure, credit card debt help, and relieving themselves from the stress of creditors was the most important thing to do—and now, as the 30 something pop sensation, Shakira sees the power that bankruptcy can provide.

Now, as a Missouri and Illinois bankruptcy attorney at a St. Louis law firm, I can tell you that the rules for bankruptcy are much different now than they were years ago (and on another continent!) but the feeling of being in overwhelming debt remains the same. Luckily, the feeling of getting relief from overwhelming debt has also remained the same.

Shakira has since founded the Barefoot Foundation, a charity to help poor children from Colombia get an education. And she says her success is inspired by her family bankruptcy so many years ago. She isn’t alone in her feeling, either. Many of the famous people who have declared bankruptcy agree that bankruptcy was only a beginning for their future success. You can get all the information you want to know about bankruptcy by requesting my free ultimate guide to bankruptcy, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Bank of America, Chase follow Citigroup's Christmas Spirit for Temporary Protection from Foreclosure

questions@castlelaw.net (Blog Author)23932 — Thu, 24 Dec 2009 08:00:00 EST

After posting the story on Citigroup’s Christmas grace period for foreclosure filings, I discovered that they weren’t the only ones who were getting into the holiday spirit. Bank of America and JPMorgan Chase have also suspended their foreclosures between December 21st and January 3rd. Though, that still doesn’t mean that you should delay in taking action to get the protection from foreclosure you need.

Missouri or Illinois Chapter 13 bankruptcy can stop your home from being sold at auction and keep your family in their home for the cold winter months to follow. And, with this new found grace period, you can call a St. Louis Missouri or Illinois bankruptcy attorney to get you help before it is too late. Chapter 13 bankruptcy can not only protect your family from foreclosure, but it can also be the solution to credit card debt you’ve been looking for, stop your creditors from taking a percentage of your paycheck, and stop bill collectors from harassing you and your family with threats of lawsuits.

So, accept this extra Christmas gift from your mortgage lender and use it to your advantage. Contact a qualified Missouri or Illinois bankruptcy lawyer that can stop your foreclosure by dialing 866-570-8484. It may just be the best present you can give your family all year.

Merry Christmas from Castle Law Office

questions@castlelaw.net (Blog Author)23927 — Thu, 24 Dec 2009 08:00:00 EST

As the end of the year approaches, I think about the year we’ve had. For many, it’s been tough. Over 1,700 people per month in St. Louis have been searching for protection from foreclosure. Countless more need credit card debt help and suffer silently under crushing amounts of debt. This debt crisis is why I’ve opened up more Castle Law Office locations—and why the books are filling up at both our Wentzville location and our Fairview Heights Illinois location.

So, as we look to the New Year, know that Castle Law office is ready to help you every step of the way with your debt. A St. Louis Missouri, Wentzville Missouri, or Belleville Illinois bankruptcy attorney can help you find a solution to credit card debt, protect you from foreclosure, stop your wage garnishment, and get what you need to get out of debt in 2010. Remember, the best way to ensure your financial future is to get educated. You can request a copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” absolutely free (and that’s not just because it’s Christmas!)

Merry Christmas and Happy Holidays from all of us at Castle Law Office and let’s have a happy new year!

Bankruptcy Terms to Know: Schedules

questions@castlelaw.net (Blog Author)23895 — Wed, 23 Dec 2009 08:00:00 EST

The court website defines schedules as, “detailed lists filed by the debtor along with (or shortly after filing) the petition showing the debtor's assets, liabilities, and other financial information. (There are official forms a debtor must use.)” Your schedules are a snapshot of your financial situation on the day you file your case. It includes everything you own (i.e. bankruptcy estate, see definition here), everyone you owe, and anything else the court needs to know.

Having correct schedules is one of the most important things that you can have—and something an experienced St. Louis Missouri or Illinois Bankruptcy attorney can really help you with. If you are filing a Chapter 7 in Missouri or Illinois, it is part of your Chapter 7 forms. If you are filing a Chapter 13 in Missouri or Illinois, it helps the court determine the proper amount for your Chapter 13 payments. Either way, it is essential for the bankruptcy court to have a complete and accurate picture of situation in order to get you the credit card debt help, protection from foreclosure, and relief you from debt that you need.

Make sure any Missouri or Illinois bankruptcy lawyer that you are considering for handling your case knows how important your schedule really is. Wondering what else you should ask before you hire an attorney? You can request a free copy of my ultimate guide to bankruptcy, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to make sure you learn what you need to know before you hire an attorney or make a mistake that could ruin your case.

What Can Happen to My Car if I Don't File a Chapter 7 or Chapter 13 Bankruptcy in Missouri or Illinois?

questions@castlelaw.net (Blog Author)23893 — Wed, 23 Dec 2009 08:00:00 EST

While missing a few car payments may not seem like a big deal, it can mean that you’ll see your car being towed away by the repo man. Once you start to miss payments, you have to act quickly. You can contact your lender to see if you can lower your payments or add the missed payments on to the end of your term but they have the right to deny your requests.

If you can’t come up with the cash once you are two months behind on your payments, the lender will take your car to be sold at auction. The worst part is that they can do some without warning. So, if it is sold, are you free from the debt? If the amount it is sold for doesn’t cover what you owe, you will have a deficiency balance left and the lender may garnish your wages or levy your bank accounts to collect it.

Luckily, there is a way to stop this terrible chain of events. You can file a Missouri or Illinois chapter 7 or 13 with a qualified St. Louis bankruptcy law firm or Fairview Heights bankruptcy lawyer and possibly get your car back or, at the very least, get any deficiency balance discharged. Plus, an experienced Missouri or Illinois bankruptcy attorney can help you get protection from foreclosure, credit card debt help, and stop those harassing creditor calls. Wondering what else a St. Louis Missouri or Belleville Illinois bankruptcy lawyer can do for you? Request a free copy of my book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” and you can learn where to start when you want to learn how to file bankruptcy.

Bankruptcy Terms to Know: Bankruptcy Estate

questions@castlelaw.net (Blog Author)23862 — Wed, 23 Dec 2009 08:00:00 EST

A Bankruptcy Estate is defined by the U.S. courts as, “all legal or equitable interests of the debtor in property at the time of the bankruptcy filing. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.)”

Translation? All of your stuff. Take a picture of everything you own or are entitled to receive on the date of filing and this makes up your bankruptcy estate. So, why is it important for the courts to know about everything that you own? In order to make a plan that will truly help you, the bankruptcy court needs a full picture of everything that you already have. That doesn’t mean that it will be taken away—in fact, an experienced St. Louis Missouri or Illinois Bankruptcy attorney is there to make sure that you can keep the property that is important to you.

In addition, although you don’t own it on the date of filing, the bankruptcy estate also includes your right to receive an inheritance during the six months immediately after filing. Any other property received after filing would not be included.

To truly get credit card debt help, protection from foreclosure, and any other help that is required to prevent your creditors from taking action, you’ll want to be fully honest with your Missouri or Illinois Bankruptcy lawyer and with the court about your bankruptcy estate so you can get on your way to a true fresh start.

Extreme Home Makeover Leaves More Than One Family in Need of Protection from Foreclosure

questions@castlelaw.net (Blog Author)23628 — Fri, 18 Dec 2009 08:00:00 EST

It seems that Extreme Makeover recipient Brian Wofford isn’t the only one in trouble after getting their homes completely redone by the popular ABC show. In 2004, a modest 1, 212 square foot home was transformed into a mansion—more than tripling in square footage and adding a gym and a hot tub, among other amenities. The new property was reassessed and assigned higher property taxes and the family refinanced it twice, leaving Wofford owing $770,000.
The family had tried to get a loan modification for the last two years but could never get it approved. Now, there home is scheduled to be sold out from under them unless they can get a three month loan modification completed by Christmas Eve.
If you are ever wondering when to file bankruptcy, receiving a foreclosure notice is a pretty good indicator that it is time. Chapter 13 bankruptcy can offer protection from foreclosure for people just like the Wofford family. It can stop foreclosure and reorganize the rest of your debt to make your chapter 13 payments feel like the burden has been lifted off your shoulders. While the Wofford family wouldn’t necessarily call a St. Louis law firm for a Missouri or Illinois bankruptcy lawyer, you certainly can.

St. Louis has had one of the worst years for foreclosure in its history—but there is help available. You don’t have to let your home be sold and leave your family with no place to live. The Castle Law Office website can take your order for my ultimate debt guide. It includes answers to bankruptcy FAQ, offers help for you to figure out if you should file bankruptcy, and provides you with the latest news in the world of bankruptcy. Plus, I offer it for free. To order your copy of “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” click here. And, if you think that bankruptcy can help you, we would love to talk to you absolutely free. You can call us at 1-866-570-8484 today to get you and your family on your way to a fresh start.

Figure You Can Erase Your Holiday Credit Card Debt with Chapter 7 Bankruptcy in Missouri or Illinois?

questions@castlelaw.net (Blog Author)23627 — Fri, 18 Dec 2009 08:00:00 EST

Before you go hog-wild on Christmas shopping, you might want to take caution of you are thinking of filing bankruptcy after the holidays. Every once in a while, someone will come into my office needing a credit card debt fix if wondering, “Should I file bankruptcy?” A Missouri or Illinois Chapter 7 bankruptcy may be a credit card debt solution for some; but if you plan on getting out of paying your bills by filing on December 26th , any St. Louis Missouri bankruptcy attorney will probably tell you that it is a mistake.

One of the many benefits of Chapter 7 bankruptcy is that you can erase things like credit card debt. But, if you have incurred a lot of credit card debt right before filing, your creditors might be suspicious that you had no intention of paying them back in the first place. If that is the case, they can sue you during your bankruptcy proceeding—claiming that the debt was fraudulent and should still have to be repaid after the discharge of your bankruptcy.

That doesn’t mean that you have to sit around until next year wondering when to file bankruptcy but it does mean that you shouldn’t spend money on your credit cards like it’s money in your bank account. If you truly want to get the credit card debt help you need and Chapter 7 bankruptcy is in your future, put away your cards and focus on making a fresh start in 2010.

How can you get your fresh start? A Missouri or Illinois bankruptcy attorney can save you from drowning in debt by answering all your questions before you even step foot in an office. And the best Missouri and Illinois bankruptcy lawyers offer it to you for free. You can order my free ultimate debt guide, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” by clicking here.

A Few Things to Consider When Filing Bankruptcy in Missouri or Illinois after a Divorce

questions@castlelaw.net (Blog Author)23506 — Wed, 16 Dec 2009 08:00:00 EST

Divorce is one of many things that can change the way a bankruptcy goes for a person who has decided to file. Does it make it harder? Not necessarily—there are just different precautions that must be taken when dealing with an ex, all of which an experienced Missouri bankruptcy lawyer should be prepared to handle.

One of the most important things for you to keep in mind is to make sure you are being completely truthful about your financial situation. If you are making alimony or child support payments, your ex spouse will get a notice that you’ve filed for bankruptcy. They will also get a notice if they have co-signed on any of your loans. That means that they can look at your bankruptcy schedules, which in itself is no big deal. But, if you have omitted say, a source of income or bank account, your ex-spouse could report it to the trustee.

Now, it is important to keep in mind that there are plenty of divorcees that go through bankruptcy without a hitch but, if you have hired a highly experienced Missouri or Illinois bankruptcy attorney, you can get it done right the first time. At Castle Law Office, we’ve helped over 30,000 people get credit card debt help, protection from foreclosure, help stop their wage garnishments, and more. And we’ll talk to you for free about how we can help you do the same without having to worry about your ex.

Are you one of the 1,700 people that need protection from foreclosure this month?

questions@castlelaw.net (Blog Author)23505 — Wed, 16 Dec 2009 08:00:00 EST

The St. Louis Post-Dispatch posed the question, “Have we reached the new normal?” after the number of foreclosure filings in St. Louis (which didn’t even include the county or Illinois metro area) grew 4% last month. St. Louis has bounced between 1,500 and 1,700 foreclosure filings for most of the last two years. And that number doesn’t begin to count those who just received a notice of default. Those numbers add up to one in every 64 local homes being scheduled for a foreclosure auction so far this year. The Post-Dispatch article ends on a dismal note by saying, “With unemployment around 10 percent and expected to stay there for months, and no mortgage modification strategy yet to succeed on a wide scale, this fact of life could be with us for awhile.”

While the author of this article may have an accurate picture of the foreclosure rate, he missed something at the end. While foreclosure may have to be a fact of life, it does not have to be the end of life as we know it.

Whether you are in St. Louis city, St. Louis County, or Metro-East Illinois,protection from foreclosure is available with chapter 13 bankruptcy. A Missouri Bankruptcy attorney can stop your foreclosure dead in its tracks—and helps you get a handle on the rest of your debt by reorganizing it into one, low monthly payment. Wondering how to file Missouri or Illinois bankruptcy? You can learn more by visiting our section of Bankruptcy FAQ or by requesting a free copy of my book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” You can learn what bankruptcy is, if you should file bankruptcy, how to find the best bankruptcy attorney in your area, and more. And you might just find the information you need to avoid becoming just another statistic.

IMPORTANT NOTE: If you have a sale date on your home, it is important to take action immediately. You can contact our office for a free by clicking here.

Credit Card Debt Statistics

questions@castlelaw.net (Blog Author)23211 — Thu, 10 Dec 2009 08:00:00 EST

Here are some recent statistics involving credit card debt in America according to the most current research:

•    Almost 80 percent of American households had at least one activated credit card in 2008.
•    Each adult American has an average of 5.4 open credit card accounts.
•    An estimated 98 percent of college undergraduates already have a credit history. Forty percent of college freshmen have a credit card when they arrive on campus.
•    Consumer debt in 2009 reached $100 billion.
•    The average credit card debt per household in the US is $8,329, according to the Neilson report.
•    The average college graduate has $20,000 in debt.
•    Forty percent of credit card holders pay off their debts each month or carry less than $1,000 in debt at any given time.
•    One out of three Americans say that it has become more difficult to pay of their credit card debts in recent times.

Illinois Bankruptcy Attorney Opens New Castle Law Office Location in Fairview Heights!

questions@castlelaw.net (Blog Author)23191 — Thu, 10 Dec 2009 08:00:00 EST

I have been helping people in Illinois for many years now get relief from their overwhelming debt through bankruptcy. Previously, they have trekked across the river to the St. Louis office to meet with me and start on their way to financial peace of mind. Now, to better serve those citizens of Illinois, we have opened a Castle Law Office location in Fairview Heights.

The new office is located at 5007 N. Illinois (Route 159), Suite 4. We will be helping the good folks In Madison and St. Clair counties along with their surrounding towns and counties get debt relief with Chapter 7 and Chapter 13 bankruptcy. We opened the doors at the new office yesterday and, already, the staff at the new office has informed me that the appointment books have filled up. That means that, if you are in financial trouble, you should contact the office immediately to avoid possibly long delays in getting the help you need to stop wage garnishments, stop harassing creditor calls, stop car repossessions, and stop foreclosure.

The office is staffed with familiar faces that have been working at our St. Louis location for over 14 years. Having well-trained, ready-to-help staff was one of my biggest concerns when opening this new office. Now, we can immediately start helping the community get out of debt with experienced, caring staff. This is probably the most vulnerable time for a family and I am glad to be there when they need help the most.

I’m proud to say that you can now get the same reliable service that has helped over 30,000 St. Louis families get debt relief without having to cross the river! You can make an appointment for free with an experienced bankruptcy attorney at our new Illinois location by calling 618-206-3535 or you can contact Castle Law Office online by clicking here.

Our Own James Brown Hits the Best Seller List!

stownzen@castlelaw.net (Blog Author)23138 — Wed, 09 Dec 2009 08:00:00 EST

Owner and founder of Castle Law Office James Brown has hit the best seller list with his fifth publication, “Shift Happens.” The book was written as part of his venture with America’s Premier Experts and was released on November 19th, 2009. The book is a guide for the average American to survive and thrive in the current economy. Since that release, it has been a hit and named a best-seller in only four days in three different categories, including Direct Marketing, Entrepreneurship, and Communications.

Due to his over 15 years of experience in bankruptcy, James was asked to write a chapter on how the small business man can cope with the current economy and continue on to success. In his chapter, titled “Getting Past Debt: Regroup, Restructure, Rebuild!” he details the most common problems that small business owners go through as they follow their dreams and even includes a guide to dealing with business debts. James’ chapter gives hope to the future of small business with realistic advice that owners can actually use to become successful.

You can order your very own copy for $21.95 of “Shift Happens” by visiting borders or amazon online. You can also view the press release on the St. Louis Post-Dispatch website. The Castle Law family wants to congratulate James on this great achievement!

The Dangers of Bankruptcy Misinformation

questions@castlelaw.net (Blog Author)23115 — Wed, 09 Dec 2009 08:00:00 EST

With the invention of the internet, the amount of information that is readily available to us skyrocketed. Think about how easy it is to look up “the capital of Guam” or “the number of people with red hair.” But with that information came the inevitable load of misinformation. Incorrect information is dangerous—causing people to count or discount things based on rumor and opinion.

Researching bankruptcy is just the same as anything else. While there may be a lot of truth out there about bankruptcy, there are also plenty of myths, misinformation, and misnomers. So how do you tell fact from fiction? Just yesterday I found a blog harping on the benefits of the “Bankruptcy Home Equity Loan.” It seems that the author has misnamed a bankruptcy process called a “motion to incur debt,” provided the wrong facts about it, and forgot to address any possible outcomes or downsides. This blog is most definitely the wrong information—but it isn’t always as easy to tell.

The best decision is to take information from sources you know and trust, like your lawyer or a government website. (You can tell which sites are connected with the government because they end in “.gov”) There are a lot of amateur blog writers out there that are dying to share their opinions on bankruptcy and while some of them may have some correct information, it is best to steer clear of them if the author has no credentials as an expert. I have written a book on getting help with your debt that could also help you combat the problem of misinformation. You can request a free copy of my book by clicking here. It has information that you need to know about bankruptcy without the worry that you are being misinformed.

How Difficult is the Paperwork Involved in Bankruptcy?

questions@castlelaw.net (Blog Author)23063 — Tue, 08 Dec 2009 08:00:00 EST

If you file by yourself, the answer to that question is very difficult. It isn’t easy to remember everything you own and owe. You are signing these papers under oath—which means that all of these papers are reviewed in a court of law and not including debts or property has serious consequences. Leaving something off could be considered perjury and if on purpose, can lead to a denial of discharge or even time in federal prison.

Even if you left something off your paperwork unintentionally, you could ruin your bankruptcy case. You could also forget to list one of your creditors, which is another mistake often made on bankruptcy paperwork. Incorrect paperwork may mean that the bankruptcy judge won’t grant you a discharge or the creditor left off is not discharged. That means you could’ve done all that work and spent time and money and then not get any relief from your debts. Is it worth the risk?

An experienced bankruptcy attorney knows the right questions to ask you to make sure your paperwork is correct and complete. After helping over 30,000 families with their debt, I know how important it is for them to get that discharge. At our office, we have a very thorough process for making sure that the paperwork is done accurately and quickly and we still offer a review for our clients to make sure we’ve covered all of their debt. It is important, however, to make sure you ask any attorney that your paperwork is complete and that you understand everything before you sign your name.

November: A Focus On Emergencies That Lead To Bankruptcy

questions@castlelaw.net (Blog Author)22891 — Fri, 04 Dec 2009 08:00:00 EST

This month in our library section, we are focusing on some of the most common reasons that individuals and families file for bankruptcy in Missouri and Illinois. Much of the time bankruptcy is not caused by years of frivolous spending, but rather a life emergency that you were not prepared for and that you cannot pay for.

Specifically, our new bankruptcy informational articles discuss three major reasons bankruptcies happen:

A medical emergency. If you or a loved one becomes sick or is involved in an accident and does not have health insurance – or if you have health insurance that does not properly cover your medical needs – you could quickly find yourself with thousands and even hundreds of thousands of dollars in debt.
A divorce. Divorce tears families apart – and it can also ruin the years that you have spent working toward financial security. Divorces are not only expensive, they can also change every aspect of your financial life for the foreseeable future.
A job loss. Jobless rates are still climbing, and although many economists think that the recession is over, some have been out of work for over a year. After jobless benefits run out, many families run through their savings and then have nowhere to turn.

Bankruptcy Terms to Know: Avoidance

stownzen@castlelaw.net (Blog Author)22817 — Thu, 03 Dec 2009 08:00:00 EST

An avoidance is a legal action under the bankruptcy code that permits the debtor to eliminate some kinds of liens that interfere with an exemption claimed in their property. As you may know, an exemption is a protection placed on a piece of property that makes it beyond the reach of your creditors (for more information, see our definition of exemption.)

The way an avoidance action works is that it takes some liens that are considered secured (tied to a piece of your property) and makes them unsecured. Unsecured debts are often completely eliminated in a Chapter 7 bankruptcy.

The best way to determine if a lien can be avoided is to speak with an experienced bankruptcy attorney. He or she will be able to determine the best way to keep the property that is important to you and get rid of the debts that are preventing you from living the life you want.

A Home Town Favorite Gets Back on Its Feet

questions@castlelaw.net (Blog Author)22816 — Thu, 03 Dec 2009 08:00:00 EST

Every news source in town is reporting the good news: Charter has emerged from bankruptcy. They have cut their debt by $8 billion. The St. Louis-based cable company had been suffering under $21.7 billion of debt and been unable to get refinancing, like so many of the homeowners across America.

So, what now? It seems that Charter is more determined to be better than ever. They will apply for a listing on the Nasdaq in 45 days (or so) and continue to serve their 4.9 million customers in 27 states. What can we learn from Charter? Their bankruptcy is a great example of what bankruptcy is really meant to do.

Charter has reinvented themselves and emerged a stronger company who is less downtrodden with debt. They are ready to improve their service and start turning a profit. Their bankruptcy is just another example of how refreshing it can be too eliminate debt and start over. It is no different for people like you and me. Bankruptcy is a new beginning—It’s a powerful tool that lets you rediscover exactly who you want to be and create the best path to getting there.

Still not sure bankruptcy is the right move for you? You can request a free copy of my book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” and learn more about the warning signs of too much debt, the options for eliminating it, and how to avoid the most common mistakes that you can make when you are under it.

Paying Taxes with Credit Cards May Not Be the Best Move

questions@castlelaw.net (Blog Author)22815 — Thu, 03 Dec 2009 08:00:00 EST

It has become easier than ever to pay with credit. Even some of the local bell ringers are saying, “Is this Visa or Mastercard?” So, the IRS has made it easy for you too—but, before you put your taxes on your credit card, you may want to think about where you are headed.

Some think that when they are in debt they know they can no longer handle that they have nothing to lose. These same folks end up putting bills they normally would’ve tried to pay on their credit card in hopes that a Chapter 7 bankruptcy will wipe out their credit card debt. While a Chapter 7 does eliminate your debt, you shouldn’t purposefully put expenses on your credit card because you think you’ll never have to pay it back. In fact, it may be considered fraud. It is actually the same as transferring a balance right before filing and will be pursued as a fraudulent transaction by a credit card company.

It isn’t different when it comes to taxes. If you put your taxes on your credit card, you can only eliminate that credit card debt if the taxes would have been eliminated any way. In other words, putting your taxes on your credit card won’t give you a better chance at having them eliminated. Plus, your credit card company can still come after you for the taxes you put on your card if it is not eliminated in a Chapter 7. There are very specific rules on when back taxes can be eliminated and these rules don’t change because you put it on a credit card.

An experienced bankruptcy attorney will help you navigate through problems like this—and others—that could be hard to handle. These situations are easily avoidable if you have an attorney who understands the stress you are under and exactly how bankruptcy can help you relieve it.

Will bankruptcy affect your security clearance?

questions@castlelaw.net (Blog Author)22611 — Mon, 30 Nov 2009 08:00:00 EST

It is natural to wonder exactly how a bankruptcy will affect your life. And your job is often something you’ve dedicated a substantial amount of time and energy to. If you have a job that requires a security clearance, you may be wondering how it will be affected once you’ve decided to file for bankruptcy. Could your security clearance be revoked?

Never in my more than 15 years experience have I had a client’s security clearance revoked. Of course, that doesn’t mean that it couldn’t happen, but it is a pretty good indicator that it isn’t likely. The factors that go into approving a security clearance are different for different types of jobs but, typically, they just want to make sure you are not the kind of person who may feel like you would have no choice but to share top secret information or do so in exchange for money. Frankly, being under a lot of debt makes you more likely to do that.

Filing bankruptcy, however, shows your employer two very positive things. One is that you have nothing to hide. You must be truthful and outright with all of your information when going through a bankruptcy and your employer will know that you have the ability to tell the whole truth about your financial situation. The other is that you are willing to take responsibility for your debt. Bankruptcy is about being responsible for the debts that you have incurred and doing what you need to take care of them.

The Middle Class Gives Bankruptcy a New Feel

questions@castlelaw.net (Blog Author)22457 — Wed, 25 Nov 2009 08:00:00 EST

The latest study on people who are filing for bankruptcy, done by Harvard Law School professor Elizabeth Warren and Ohio University professor Deborah Thorne, is showing that the middle class has become the new face of bankruptcy. With more than 100,000 middle class families filing for bankruptcy every month in 2007, the study shows that this shift happened even before the recession—and it has only continued since then.

Many of the folks who are now filing bankruptcy are college-educated homeowners who have really just fallen on bad times. So, what does this study really say about the people who file bankruptcy? Well, I think this article and others who have come out with similar stories all come to the same, unspoken conclusion: Overwhelming debt can affect anyone.

Filing bankruptcy doesn’t mean you are a bad person. In fact, it means that you are a good person, willing to take responsibility for your debt and the future welfare of your family. And while chapter 7 and chapter 13 can help you in different ways, they both relieve the stress that debt can cause you and the ones you love. So, put your energy towards something positive and start looking at ways to relieve your debt.

Missouri Ranked 44th Happiest State Out of 50

questions@castlelaw.net (Blog Author)22272 — Mon, 23 Nov 2009 08:00:00 EST

In a study conducted by LiveScience, Missouri was found to be in the bottom six of states in a ranking on overall happiness. The survey takes six types of well-being into account, including: overall evaluation of citizens’ lives, emotional health, physical health, healthy behaviors, and job satisfaction. At first, I was surprised to see that statistic. And then, I remembered how many people are living with unnecessary burdens.

After helping over 30,000 families through bankruptcy, I see many people suffering with their financial situation. Having overwhelming debt affects every part of your life—intruding in your thoughts during the day and often keeping you up at night. Your thoughts cause you to worry and live in fear about your future. That fear and worry takes its toll on your well-being—even causing physical manifestations like head and stomach aches.

So, I’d like to continue to do my part in raising the rank for Missouri. I will continue to help stop wage garnishments, harassing creditor calls, repossessions and foreclosures in Missouri and Illinois. But, I can’t do it alone. You must take responsibility for your own happiness. If you would be happier without looking out the window for the repo man or screening your calls in fear of creditors, come in and talk to us. We’ll help you find the relief you need to be the happy person you want to be.

Could Bankruptcy Have Saved Nicholas Cage from Foreclosure?

questions@castlelaw.net (Blog Author)22268 — Mon, 23 Nov 2009 08:00:00 EST

Could a chapter 13 bankruptcy have saved Nicholas Cage’s homes from being gone in sixty seconds? (Well, maybe it took a little longer. I couldn’t resist the reference.) Cage’s two New Orleans properties sold for $2.3 million and $2.2 million at an auction last week. His foreclosures were the result of $6 million in unpaid back taxes dating all the way back to 2007. So, could I have helped Mr. Cage?

Absolutely, if I were licensed in the state of Louisiana. I certainly could have stopped his foreclosures. A chapter 13 bankruptcy stops a foreclosure due to back taxes. It will actually allow the person to keep their home and pay back their taxes throughout the life of their bankruptcy, which Mr. Cage surely could’ve done after his next installment of National Treasure.

So, even though it is too late to help Nicholas Cage, there is still time to help you. If you are facing foreclosure because of unpaid taxes, give our office a call. We can talk to you for free about what your options are for keeping your home.

Something to Remember this Thanksgiving

questions@castlelaw.net (Blog Author)22049 — Thu, 19 Nov 2009 08:00:00 EST

While it is fun to think of Thanksgiving as a great big feast, complete with mashed potato eating contests and pie bake-offs, I always try to get my family back to the basics in the holiday season. While my kids are almost grown now, with Devyn being the youngest at 16, I find that the cheesy lessons that we used to teach them about being thankful still ring true in their near-grown up lives.

This spirit is no different at our office than it is at home. Many people that first call our office feel like they’re at a low point in their lives. They are downtrodden with hefty debts, harassing phone calls, piles of overdue notices, and worse. They don’t feel good about what’s happening in their lives. But, when they come into our offices, their spirits lift. Why? Because if today is your lowest point, you can only go up from here.

The feeling of being out from under the burden of debt is sometimes hard to imagine when you’re in the thick of it. However, as you’ll hear me say, doing nothing changes nothing. The minute you start doing something about your situation is the minute that you can start to clearly see just how much there is to give thanks for—and start giving it.

So, that is what I want to bestow upon you this Thanksgiving season. Be thankful for your friends, your family, and that tomorrow is a new day.

Does Bankruptcy Cause Divorce?

questions@castlelaw.net (Blog Author)21850 — Mon, 16 Nov 2009 08:00:00 EST

Bankruptcy doesn’t cause divorces or lead to divorces – but financial stress does. In fact, money troubles are cited as the leading cause of divorce. Anxiety over paying the bills, creditors harassing you daily, and other financial stresses can add undue strain to your marriage. While filing for bankruptcy can help with many of these financial stresses, it may not help any underlying problems in your marriage.

When our clients file for bankruptcy, it is very important for them to understand why they are in financial straits to begin with – perhaps they have faced an unforeseeable emergency like a job loss or medical emergency. Or perhaps they never properly learned how to best manage their money. In some cases, a lack of communication between partners regarding money matters may add to the issue.

Bankruptcy doesn’t cause divorce any more than any other major life change causes divorce. While the time period before a bankruptcy filing can be stressful, and while life after bankruptcy can be an adjustment for everyone, many, many couples survive and thrive in the years after their bankruptcy. In other instances, financial troubles and bankruptcy may be symptoms of deeper issues in a union. Bottom line: bankruptcy won’t lead to divorce, but it probably won’t solve marital problems, either.

The Truth about Debt Settlement Is Out

questions@castlelaw.net (Blog Author)21845 — Mon, 16 Nov 2009 08:00:00 EST

While I’ve written several articles on the downsides to debt settlement, it wasn’t clear that the rest of the world was on board. After all, debt settlement does sound really great. And, in this economy, every solution to debt problems is sounding a little bit better. The internal filters we usually have when we hear commercials that promise outrageous things like settling your debt for “pennies on the dollar” don’t work as well as they used to. We just can’t be as cynical as we once were.

Fortunately, the king of financial papers, the Wall Street Journal, is announcing the truth about debt settlement, too. The article reads, “But the television and radio ads that blare ‘pay just 50% of what you owe,’ too often neglect the fine print noting that debt settlement—which entails deliberately failing to pay your bills until you reach an agreement with your creditor to pay only a portion of the total owed—works only for a few consumers who attempt it.”

The article continues on about the disappointment you can face even if you can get a debt settlement firm to help you. It seems to me, and apparently the Wall Street Journal, that debt settlement just isn’t the best way to keep your family from foreclosure, harassing creditor calls, and the other bad stuff that comes with too much debt.

So, what is the best option? Everyone’s situation is different and it is often hard to tell which method of relieving debt will work the best. Certainly, bankruptcy is among the safest options. And it is federal law, so it is a very powerful option allowing you to control the terms of repayment, if any, and not the lender, as in the case of debt settlement. While debt settlement promises to settle your debt for “pennies on the dollar,” a chapter 7 bankruptcy in most cases can actually eliminate most of your debt completely. In addition, it takes care of all of that other bad stuff; it stops creditors from harassing you, removes wage garnishments, and gets you on your way to a fresh start. Of course, the decision is up to you but you’d be well-advised to get all the information you can before jumping into any “quick fixes.”

What's the Most Important Thing to Do When You're Facing Foreclosure?

questions@castlelaw.net (Blog Author)21697 — Fri, 13 Nov 2009 08:00:00 EST

Getting a foreclosure notice in the mail sometimes feels like the bottom has dropped out of your life. The safety net is gone—and no one is going to put it back up for you. The moments you spend reading the notice and after are often filled with confusion and worry. It is natural to be unsure. Whatever your next move is, the most important advice I can give you is this: Don’t Wait.

I understand that piece of advice may be easier said than done, but waiting to act can only put you in a worse situation. You must take charge of your own destiny.

Start by exploring your options. Some consider loan modification as their first option. But, if you are already in foreclosure, it may not be your best option. Many of the biggest lenders are approving less than 5% of mortgages for a modification. To make matters worse, you often aren’t notified that you don’t qualify for a loan modification until right before your foreclosure date—leaving you with little time to find help elsewhere.

Some also consider debt settlement, but the prevalence of scams and hidden fees has left some without a home and still drowning in debt. Still, some consider bankruptcy. Chapter 13 bankruptcy has helped thousands of people save their homes and keep their families safe. It actually stops foreclosure dead in its tracks and helps you get a handle on the rest of your debt. If you need help making your next move after a foreclosure notice, you can call us to set up an appointment where a qualified consultant can talk to you about your situation and help you figure out the best solution. And, of course, it’s free.

Are There Lawyers That Specialize in Foreclosure?

questions@castlelaw.net (Blog Author)21696 — Fri, 13 Nov 2009 08:00:00 EST

There sure are. They are the same lawyers that practice bankruptcy. A chapter 13 bankruptcy actually stops a foreclosure dead in its tracks. How? As soon as you file chapter 13 bankruptcy, an order called an “automatic stay” is issued.
While an automatic stay can do many wonderful things for you, in the event of a foreclosure, it stops your lender from moving forward with the sale of your house.

While a chapter 13 bankruptcy can help you save your home, chapter 7 can still help you if you have chosen not to keep it. Filing a chapter 7 can hold up a sale to give you time to take care of the rest of your debt—and find another place to live. It also will eliminate any deficiency balance due if the house sells for less than what is owed. In most cases, it lets you save money by eliminating your debt—even the debt tied to your home.

There is more than one way to put your life back together after a foreclosure. You can make an appointment with us today and start saving yourself and your family from foreclosure.

You Can Still Give Your Tithing in Bankruptcy

questions@castlelaw.net (Blog Author)21511 — Tue, 10 Nov 2009 08:00:00 EST

When going through bankruptcy, most people like to get back to the basics. They want to stop worrying about overdue house payments, harassing creditors, and wage garnishments and focus on the more important things in life—like family and friends. For many, those more important things include God and their church. So, it’s no wonder that people sometimes ask me at their free consultation, “Can I still give my church tithing?”

Fortunately, in both Chapter 7 and Chapter 13, a debtor can include an expense for charitable contributions, which include church tithing. And, with the weight of debt off your shoulders, it is easier to contribute. In fact, many end up giving more money than they did before their bankruptcy.

Bankruptcy protection truly provides a way for you to focus on the things in your life that make you happy. Contributing to your church and the community within it can be a powerful thing. It can make you feel like you’ve given something back to an organization that has given you so much. Bankruptcy doesn’t limit that—it, instead, empowers you to do the things that give you great satisfaction in life and move on from the burden of debt.

If you would like to free yourself to focus on the things that matter to you, you would be well-advised to talk to the best bankruptcy attorney in your area about what bankruptcy can do for you.

Looking for a House While on a Budget?

questions@castlelaw.net (Blog Author)21288 — Fri, 06 Nov 2009 08:00:00 EST

Many of the stories you hear from sellers these days center on how much they had to drop their pricing. Sounds like a great time to buy then, huh? But, if you’ve been through a bankruptcy or are under the weight of some debt, you know that everything still must be done on a budget. So, here are a few tips to keep in mind while trying to find the best deal.

• Be patient. If you rush into a house that sounds like the best idea you could find at the moment, you may end up missing a house that fits your personality and your budget.
• Let the house stay on the market for a while. Typically, sellers are still listing their houses at the highest price they can get. After 90 days, they will most likely lower the price—or at least become more willing to negotiate.
• Check the current state of the home. Has the current resident lived there for a short time or a long time? You may get an
impression of how desperate they are to sell the home, which gives you a little bargaining power. Does it need a lot of repairs? If so, the overall price of the home should be discounted.

Looking for a home is no small feat, even in this economy. If you take a step back and think clearly about what you can afford, you may find yourself with a little more patience—and the perfect home.

Obtaining a Discharge in a Chapter 7 Bankruptcy

questions@castlelaw.net (Blog Author)21226 — Thu, 05 Nov 2009 08:00:00 EST

First, let’s clarify what a discharge really is. A discharge is the finish line for bankruptcy. It releases the debtor from certain debts—and prevents creditors from trying to collect it. Translation: No more harassing phone calls at midnight, wage garnishments, letters filling up your mailbox, or burden from that debt.

“Sounds great, James, but doesn’t it take forever to get your debts discharged?” Actually, no. You can obtain a discharge in as little as 90 days from the day of your filing. That’s right, 90 days. Pretty small chunk of time after suffering for months or years in debt, huh? Now, every case is different. Some cases take longer than others depending on the specifics of each situation—but, in general, it won’t take much longer than 90 days, even with some complications.

Not sure if a Chapter 7 bankruptcy is right for you? Many of our clients weren’t sure either until they read through the free book that we offer or came in for their appointment. The important thing to remember is that you don’t have to live with the burden of debt forever. If you’d like to talk to us for free, you can contact us right away.

Can You Afford to Deck the Halls This Season?

questions@castlelaw.net (Blog Author)21066 — Tue, 03 Nov 2009 08:00:00 EST

With Halloween already passed, we have entered the spending season. Between getting a handle on those Halloween bills and creating more bills for Thanksgiving and Christmas, this is the perfect time to get into real trouble with debt. MSN Money had some great tips for helping you through this expensive season.

Know how much you are spending. It is easy to lose track of how much you are really spending on gifts, food, and decorations when you get carried away by the Christmas spirit. Just keep in mind the shock you’ll receive in January if you aren’t keeping track of how many times you are swiping that credit card.

Don’t overdo it. Don’t put yourself into debt just because you want to get everyone an impressive amount of gifts. Be realistic about what you can afford; after all, the best gifts come from the heart!

Don’t wait until the last minute. At some point, we are all guilty of procrastinating but it doesn’t pay off around the holidays. Often, trying to pay for all the presents at once will make your next credit card bill give you the chills. Space out your gift buying so you can stick it in your budget.

Get a gift receipt. Unless you are absolutely sure, don’t spend a bunch of money in stores with no return policy. It could leave you feeling guilty and end up costing you more in the long run.

Hopefully these tips can help relieve you of the burden of debt that could inevitably crush the Christmas spirit we all love to enjoy. If you are already in trouble with your debt, you may want to explore the option of Bankruptcy. It has helped many families get through the holiday season—and an appointment to talk to someone about your debt may just be the best gift you could give yours.

Will Thanksgiving Cost As Much As It Did in 2008?

questions@castlelaw.net (Blog Author)20916 — Mon, 02 Nov 2009 08:00:00 EST

The costs of everything have risen. From shoes and phones to cranberries and yams, we’re all paying a little bit more these days. Last year, the cost of Thanksgiving rose 5.6%, going from $42.26 to $44.61. That is a bigger rise in pricing than we’ve seen in years with 2005 and 2006 both seeing an increase under 3.7%.

So why is it costing us more to have our feasts? Food is a necessity. When the going gets tough, the things that people don’t need are thrown out of the budget and we’re left with only what we must have. And we must have food. So, grocers can raise the price of food and we’ll still have to buy it.

Fortunately, economists aren’t predicting as high of an increase for 2009. Regardless of the predictions, we will still be spending more. And, most likely, spending for Thanksgiving will just be a precursor to the real debt that we’re left with after Christmas.

Are there any good solutions? I’ve actually helped many families with their holiday bills. Because so many people are buying the holiday supplies on credit, I can help them with a Chapter 7 Bankruptcy. In most cases, a chapter 7 can wipe the credit card debt that brings down a family’s holiday spirit and let them start fresh. Relieving the burden of debt makes it easier to give thanks for the things that really matter, like health, family and friends.

Is There Light at the End of the Recession Tunnel?

questions@castlelaw.net (Blog Author)20831 — Fri, 30 Oct 2009 08:00:00 EST

The Associated Press reports that third quarter growth is raising the hopes of Americans everywhere. The recession, which has been going on since December of 2007, may finally be lightening up. How did it happen? Consumer spending is up more than 22%. A lot of that increase was a result of the well publicized cash for clunkers program. Another government incentive, the $8,000 tax credit for first-time home buyers, resulted in a 23% increase on housing projects. But, when the government stops offering these incentives, will the economy be continue to get better?

It seems that the fate of America lies where it always has: in the hands of Americans. It is now more important than ever to be responsible. Unfortunately, things beyond our control often lead us down the path to debt. Many people don’t realize that bankruptcy has helped many Americans—a projected 1+ million this year—become more responsible.

In most cases, bankruptcy can:
•         Help you understand what you can and cannot afford
•         Improve your credit score by giving you a clean slate from which to move up
•         Stop you from increasing your personal debt
•         Keep your family safe by stopping creditors from making harassing phone calls, saving your home and removing wage garnishments so you can have the money you need to get your life back on track

If it is time for you to take responsibility for your debt, you would be well-advised to schedule a free appointment with the best bankruptcy attorney in your area.

This Isn't Working Anymore, Visa

questions@castlelaw.net (Blog Author)20692 — Wed, 28 Oct 2009 08:00:00 EST

And this time, it isn’t me—it’s you. Breaking ties with your credit card is harder than just walking across the kitchen to get the scissors. It often means cutting ties to your easiest way of spending; and maybe that’s a good thing. Credit cards can really get you into trouble and, when they do, the credit card companies only make it worse. They’ll hike up your rate or lower your limit, either of which doesn’t exactly help you pay your bills. So what’s the best way to tell your plastic pal it’s over?

One option is to close the account. If your rates are rising and you aren’t paying your balance in full, it is costing you money right out of your pocket. “But James, won’t it lower my credit score to close my card?” Well, maybe, but it is too hard to say by how much or for how long. Plus, having too many open accounts can lower your score too. It seems that it would be safer to go with something that may cost you some money as opposed to something that will definitely cost you more money.

You can open up a new credit card account to make up for the loss in credit points—but you’ll definitely want to set some ground rules before you jump back in. You could try a smaller credit union instead of a big bank. A small bank may have fewer tendencies to change your account without warning. You should also set a budget that you can stick to for your credit cards.

If you can’t secure another credit card because of your payment history or low credit score, you may want to consider options to relieve your debt. A chapter 7 bankruptcy actually wipes most of your debt and gives you a clean slate to start from—and build good credit. In most cases, filing the bankruptcy actually improves someone’s credit score, assuming they don’t make late payments on anything after filing.

When Is It Time to Get Help With Your Debt?

questions@castlelaw.net (Blog Author)20549 — Mon, 26 Oct 2009 08:00:00 EST

It is often hard to determine when it is time to take action about your debt. It starts with a few late notices for bill payments, then you start getting some harassing phone calls, and then you start becoming concerned with your credit rating. It all comes as a whirlwind and, before you know it, you’re drowning in debt. If you do nothing, you will soon face lawsuits, judgments, and garnishments of your paycheck.

So when is it time to start looking for the best bankruptcy attorney? It is hard to make a general rule for everyone. Some people call the minute they start getting phone calls but others will wait until they actually get their wages garnished, their car repossessed, or a foreclosure notice in the mail. Whatever your situation may be, ask yourself “Are the consequences of not paying my debts worse than the costs or paying them?” The answer to that may give you a good indication of where you stand. Doing nothing changes nothing.

Fortunately, the best bankruptcy attorneys will talk to you for free so you can see if bankruptcy can help you. It may be the best place to start—and the most freeing decision you’ve ever made.

Your Bank's Mistake May Be Your Gain

questions@castlelaw.net (Blog Author)20397 — Thu, 22 Oct 2009 08:00:00 EST

Every so often, a case comes up at our firm where a bank forgot to complete the paperwork to put a lien on a car’s title when they grant the loan. And while I’d love to say, “Wahoo! Free Car!” I know that isn’t the case. The difference is that your obligation and the bank’s obligation to the car are separate agreements. Your part of the paperwork, called a “security agreement,” assures the bank that you understand your obligation to pay and, should you stop, the bank has the right to take the car back from you.

The part of the loan process that is sometimes forgotten is called, “perfecting the lien.” It acts as a big sign to all other parties who may be interested in your collateral (people looking to buy or creditors looking to repossess) that the bank gets to take action first. If it is indeed forgotten, the creditors or buyers haven’t had proper notice that they are not the only interested parties and may be able to go after it.

This process gets a little hairy during bankruptcy but a Chapter 13 might end up helping you. If the bank forgets to perfect the lien prior to a Chapter 13, you could keep it by merely paying the market value to your car lender. If they didn’t forget to perfect the lien, in most cases you will owe the full contract amount plus interest. What does all this mean? If your bank makes a mistake, a Chapter 13 bankruptcy may help you keep the car for much less than you bargained for.

Will You Put Your Next Offering on Plastic?

questions@castlelaw.net (Blog Author)20395 — Thu, 22 Oct 2009 08:00:00 EST

An article was released on MSN yesterday that was meant to get a few laughs but left me a little stunned. Do you know who is now accepting payment on a credit card? Along with government offices, vending machines, airplanes, fast food drive-thru windows, phones, bridges, and toll roads, credit cards are now being accepted in church and at Salvation Army kettles. You can put good will on plastic now?

It makes me think, “What kind of world are we living in?” Unfortunately, the answer is a world where the idea of putting off payments until next month is accepted. And while some may be able to handle the delayed spending, I know all too well that others cannot. If you are having trouble saying no to credit card offers, think about these facts for a second:

2009 has seen a record high in credit card delinquencies.

Late payments have risen 40%.

According to an article by Saskia Scholtes of the Financial Times Limited, payments that were at least 60 days late have hit 3.75%, which is a record in the United States.

The worst of it is that people are adding to this debt every day. With one careless swipe, people are spending money they can’t even see. Are there options for help? Chapter 7 Bankruptcy actually wipes out your debts to give you a fresh start. If you are under credit card debt, you would be well-advised to contact an attorney who can help you get the relief you need to live the life you want.

Are the Repossession Laws in Illinois Different Than Those in Missouri?

questions@castlelaw.net (Blog Author)20250 — Mon, 19 Oct 2009 08:00:00 EST

In Illinois, your car can be repossessed as soon as you are late with a payment. Many creditors won’t take your car this first time you are late, but they are legally allowed to do so. If you have paid more than 30% of the total purchase price of the car, you can get your car back within 21 days of the date of repossession but the price is a hefty one. You have to payback all of the payments owed, pay any late charges, and pay the costs of the repossession. That payment is too large for most people to make, especially if they cannot afford their payments. If you have paid less than 30% of the purchase price of your car, a creditor can require the entire balance to be paid back before you can have your car.

Many find themselves leaving their car to be sold at auction—but are you free from your car loan after that? Not necessarily. If the car is sold at auction for less than you owe, then you will still owe the difference. For example, if your car loan is $15, 000, but your car only sells for $11,000, you will be responsible for coming up with the other $4,000. To collect this, creditors can get a judgment and then garnish your wages or freeze your bank accounts.

So, no, the laws are not vastly different in Illinois versus Missouri. However, this is one common solution to stop repossession in both states. A chapter 13 bankruptcy can stop car repossession in both states or even get your car back after it has been repossessed. If you think you might miss a payment or have already missed a payment, you would be well-advised to contact an attorney experienced in repossession immediately.

Why Are Retirees Filing Bankruptcy?

questions@castlelaw.net (Blog Author)20126 — Fri, 16 Oct 2009 08:00:00 EST

I read an article yesterday that announced the 55 and older crowd as the most likely to file bankruptcy. Is this a coincidence? I don’t think so. Bankruptcy provides protection for all people with debt but it has some extra benefits for seniors. Assets in IRAs and other retirement accounts are protected in bankruptcy filings. Depending on your state, it is usually 100% protected. However, I wouldn’t just run out and dump a bunch of money in an IRA. As in most cases, if large contributions were made within three years of filing, they could be held to be fraudulent and not protected. That means that seniors will get to keep their safety net that they’ve worked all their lives to build. Plus, they can get rid of the debt that has burdened them for their whole lives.

Most people who’ve reached the later years of their lives have assets to protect. They have the home they have raised their family in. They have the car they taught their son or daughter to drive in. And they have a lot more at risk when the creditors start calling. They’ve also got big bills to pay. In retirement, tax bills can be pretty hefty. Many of them are also trying to manage a house payment, credit card payments, and car payments on their income from social security. After living their lives on a regular income, having to switch to a low fixed income does not always make it easy to take care of all of the bills. It’s no wonder that they are willing to take responsibility and protect a life they’ve spent all these years building.

America has always taken responsibility for protecting their seniors and bankruptcy is just another way to do that. Do you have more questions about what bankruptcy can do? Now, you can request a free copy of my book: Get Out of Debt.

What Bill Collectors Are Allowed to Do (And What They Aren't!)

questions@castlelaw.net (Blog Author)19982 — Wed, 14 Oct 2009 08:00:00 EST

One of the most common issues that people have when they come into my office is their harassing creditor calls. They call during the day, at night, before work, after work, and sometimes even during work. They’ve even been accused of calling someone so much that it caused them to have a heart attack. But what is it exactly that they’re allowed to do?

First of all, it’s against the law for a bill collector who works for a collection agency to call you at unreasonable hours, usually considered before 8 a.m. or after 9 p.m. The Fair Debt Collection Practices Act prevents them from harassing you, using abusive language, using false or misleading statements, adding unauthorized charges, and more.

They also shouldn’t be calling you at work, bothering your relatives, etc. The problem is that many debt collectors don’t always do as they’re told. And while a debt collector from a collection agency is supposed to follow the rules, a member of the collection department of your creditor may not have the same set of rules to follow.

You have to keep in mind that debt collectors have a legitimate claim. While they shouldn’t be harassing you, they are trying to collect a debt that you owe them—and they will continue past harassing phone calls. They usually escalate into more than the routine call to set up a payment date. I have handled cases where the calls turned ugly, including vulgar language, screaming, and even physical threats. They can actually get a judgment against you and garnish your wages, seize your bank deposits, or put a lien against your property.

At my office, you can stop harassing creditor calls as soon as you retain me. Filing bankruptcy can prevent all of the actions that creditors take against you and, best of all, you can get a handle on the debt that you owe them. If you are receiving harassing creditor calls, you can help yourself by making an appointment with us. And, as always, the appointment is free.

Be Wary of "Free" Credit Reports

questions@castlelaw.net (Blog Author)19878 — Mon, 12 Oct 2009 08:00:00 EST

With all of the talk about identity theft and the importance of good credit, it is hard not to be tempted by the idea of getting your credit score, especially for free. Commercials urge that in order to be safe, you must monitor your score on a regular basis. But before they hook you with their catchy jingle, you might want to pay attention to what you are really getting.

Consumers are entitled by law to a free credit report but that only means a record of your borrowing and repayment history—not the numerical scores. You can get a free credit report every 12 months from AnnualCreditReport.com but you have to pay extra to get your numerical score. Websites like Credit.com and CreditKarma.com are now offering a glimpse of your credit report for free by providing information on how your score is calculated, what you can do to improve it, etc.

You have the option of purchasing your numerical score but be wary of the fine print. Many companies that provide you with a numerical score will continue to charge you a monthly fee until you cancel their service—and most people don’t realize that they’ve signed up for their credit card to be charged every month. You could go three or four months before you realize that you’ve been paying for their service every month; and by then, it is too late to get your money back from most companies.

Do You Have to Pay Back Your Mortgage After a Foreclosure?

questions@castlelaw.net (Blog Author)19726 — Thu, 08 Oct 2009 08:00:00 EST

While I try to help as many people as I can avoid foreclosure with Chapter 13 bankruptcy, there are still some folks who think that it will cost them less money to surrender their home. And it seems like they are right. After all, doesn’t the bank just take your home and call it even? Not necessarily.

If your home has been auctioned and sold at foreclosure, the creditors still may come after you. You can be held responsible for a deficiency balance—the difference between what you owe on the home and what it is sold for. For example, a man owes $100,000 on his mortgage. He lets his home go to foreclosure but it only sells for $75,000 at auction. That man is now not only without a home, but he also owes his creditors the remaining $25,000 difference. The creditor can and will file suit, obtain a judgment and can levy your bank account or garnish your paycheck.

Letting your home be foreclosed on can actually leave you in a worse situation than you were in before. It’s no wonder that I’ve had more and more calls from folks hoping to stop their foreclosure. If you are facing a foreclosure, you would be well-advised to contact a bankruptcy attorney immediately to prevent entering a situation that has ruined many people’s lives.

How Soon Can You Get Creditors to Stop Calling in Missouri and Illinois?

questions@castlelaw.net (Blog Author)19725 — Thu, 08 Oct 2009 08:00:00 EST

The first question I often get when someone comes into my office is, “When will those %$#@! creditors stop calling?” When you come in to discuss filing a chapter 7 or chapter 13 bankruptcy, you can be free from creditors calls the moment retain me. And no, I’m not a miracle worker. An experienced bankruptcy attorney is just able to use the law to help you get peace of mind.

So how does it work? We have a “creditor line” to which all of your creditors will be referred. Any questions they have or comments they may need to make to you can be taken care of by our office. Make sure you ask any attorney you’re thinking of hiring if they provide this extra service to help you while you are preparing to file your case. I think you’ll find that most don’t.

All you need to do to prevent harassing creditor calls is call to set up a consultation. The appointment is free—but not having to live in fear of who is on the other end of your phone line may be priceless.

Bankruptcy And The Public Record

questions@castlelaw.net (Blog Author)19653 — Wed, 07 Oct 2009 08:00:00 EST

One common concern that those who file for bankruptcy voice is that everyone will know that they petitioned for bankruptcy. However, although the list of people and companies who file for bankruptcy is on the public record, the chances are small that anyone will find out unless you tell them.

While companies and celebrities often make the papers for their financial mistakes, debts, and bankruptcies, a regular person will not make the papers. If someone wanted to find out whether or not you have declared bankruptcy, they could find out in theory, but in our experiences almost no one wants to do the footwork or even thinks to check.

In the end, the most likely way that someone will know if you've declared bankruptcy is if you tell them yourself - or if you tell someone who might spread gossip. If you keep your filing to yourself, however, you will probably not be the talk of the town.

2005 Bankruptcy Abuse Prevention and Consumer Protection Act

questions@castlelaw.net (Blog Author)19576 — Tue, 06 Oct 2009 08:00:00 EST

What is the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, and how did it affect those filing for Chapter 7 and Chapter 13 bankruptcy?

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was signed in to law by George W. Bush. It is a series of amendments to federal bankruptcy law that makes it more difficult to declare bankruptcy and that better prevents those who are able to pay their debts from petitioning for Chapter 7 bankruptcy. The new bankruptcy law made it harder for both businesses and individuals to declare bankruptcy.

The bankruptcy amendments prevented those with high incomes from declaring Chapter 7 bankruptcy though it still offers the Chapter 13 bankruptcy option. The new law also allows a judge to dismiss a Chapter 7 bankruptcy petition if he or she thinks that the debtor in question is abusing the system.

The best way to navigate the new bankruptcy laws is to talk to an experienced bankruptcy lawyer.

Can Bankruptcy Affect Gifts to Children?

questions@castlelaw.net (Blog Author)19510 — Mon, 05 Oct 2009 08:00:00 EST

Bankruptcy won’t affect any funds set up for your children as long as they are handled correctly. You can open an account under the Uniform Gifts to Minors Act of the Uniform Transfers to Minors Act. While the parent will remain in charge of these accounts until the child reaches adult age, the money put in cannot be taken back.

How does this help your child? The account is set aside specifically for your child and you cannot draw money out of it to pay your own bills—making the purpose of the bank account clear.

However, you have to be careful on when and how much is transferred into this account in relation to the date you intend to file Bankruptcy. Why? If you transfer a lump sum of money from a general checking to a UTMA within 2 years of filing bankruptcy, it could be looked at as if you were hiding an asset. In some cases, a bankruptcy trustee can avoid this transfer and get the money back to pay creditors.

It is hard to know that you’ve fully protected your children’s funds when setting up these accounts. I know as a parent of 3 that ensuring your child’s future successes is very important. If you find yourself in this situation, it is important to contact a bankruptcy attorney who can make sure you keep gifts to your children safe.

How Much Can A Credit Rating Really Mean?

questions@castlelaw.net (Blog Author)19415 — Fri, 02 Oct 2009 08:00:00 EST

You hear all this talk about credit scores and their importance—but what does a credit score really mean? Your credit rating is a way to keep track of how you’ve handled your credits and debts. Paying your bills on time is one way to raise your credit score. Conversely, if you made a late payment on your credit card or your rent or defaulted on a loan, it goes on your credit report and lowers your score.

Why is it important? Your credit score affects your ability to secure loans and get credit cards. Would you loan money to someone with a history of late payments or no payments? Probably not. The credit industry thinks the same way.
You should be doing all that you can to improve your credit score. Check your credit report and make sure every detail is correct—from your address and phone number to the balances and payment history on your loans. Of course, paying your full payments on time will improve your score too.

Contrary to popular belief, filing for bankruptcy has let many people actually improve their credit score. Since Chapter 7 bankruptcy clears your debts, it provides an opportunity to start from scratch and rebuild your credit the right way. If you are behind on your payments, it is important to look into your options to start improving your credit today.

Can I Get Rid of My Student Loans by Filing Bankruptcy?

questions@castlelaw.net (Blog Author)19217 — Wed, 30 Sep 2009 08:00:00 EST

Before the Bankruptcy code was amended in the late 90s, it was easier to put student loan debts into a chapter 7 bankruptcy. Now, according to Bankruptcy Law, you can only discharge student loans if you show your loan payment causes “undue hardship” on you and your family. To show undue hardship, you have to be physically unable to work and have little to no chance of becoming employed in the future. This standard has been narrowed even further by Bankruptcy judges that consistently rule you cannot have any source of income to be considered under “undue hardship.”

If you are suffering from student loan debt, you aren’t alone. About 60% of students graduate with debt—and the amount of that debt has increased almost 20% in the last two years.

So what can you do? If you are suffering from more than just your student loan payment, getting rid of your other debts may free up enough cash to give you an easier time with your student loan payments. In a chapter 7, you can eliminate debts, bills, and financial obligations and keep almost everything you own.

You would be well-advised to discuss your options with an attorney experienced in debt relief. He or she might be able to show you a logical path to get back on track with your student loan bills.

What Are the Warning Signs That Your Debt Settlement Firm May Be a Scam?

questions@castlelaw.net (Blog Author)19061 — Mon, 28 Sep 2009 08:00:00 EST

Many Americans are considering any option possible to relieve their debt. While I see many taking the safest, most reliable route with bankruptcy, some still are looking into the uncertain world of debt settlement. It is hard to wade through the information given to you by debt settlement companies—especially when so many of them are dishonest or fraudulent. I read some warning signs in an article on USA Today that I'd like to share with you. If you have decided that debt settlement is right for you, keep these things in mind.

• Be wary of early payment. Since their fees are not regulated by the government like bankruptcy attorneys, debt settlement firms often charge big fees before the job is even done. This is usually a good indication that they won’t work that hard for you because their payment won’t be tied to the results of your settlement.

• Many debt settlement firms claim that they can get 30 cents on the dollar but with a bankruptcy, under federal law, in most cases you will pay nothing. If the debt settlement firm makes claims that sound too good to be true, they usually are.

• They will not be able to protect you from lawsuits. They may also claim that they can eliminate all of your debts. This is one of the most common tactics used by fraudulent debt settlement firms.

• They also don’t have the authority to change your credit report—your debt settlement will be on there. Creditors are the actual parties that make changes to your credit report. When a creditor agrees to settle a debt for less than the amount owed, they will report it as such on your credit report. This will likely have the same effect on your overall score as filing a bankruptcy case.

The moral of this cautionary tale is to make sure you have fully researched your options before you make a decision on relieving your debts. Filing bankruptcy with an experienced attorney can be the best option for you and a safer avenue to take.

FDIC Shows Concern for Loan Modification Scams

questions@castlelaw.net (Blog Author)18819 — Wed, 23 Sep 2009 08:00:00 EST

As discussed earlier this month , foreclosures are at an all time high—and the credible banks are not necessarily prepared to handle it. Big companies like Bank of America and JP Morgan Chase are approving only a small percentage of the people that apply for loan modification, forcing homeowners facing foreclosure to look to loan modification firms for relief.

The FDIC issued a warning to “beware of foreclosure rescue and loan modification scams.” The subtitle reads, “If it’s too good to be true, it probably is.” And, just like debt settlement, the truth begins to surface about loan modifications. Hefty upfront fees and written agreements that stray from what you discussed with the company are often a sign that you may need to investigate your company further. Many other warning signs, however, are not as easy to identify and can easily be passed over by consumers.

I have many clients that come in to see us after they find out that loan modification offices have no legal protection to offer, no method of stopping harassing creditor calls, and no real plan for helping them with their debt. If you are in danger of defaulting on your mortgage, you may want to consider more than just loan modification. There are many types of bankruptcy relief. More importantly, there is a specific type that will allow you to save your home and get the legal protection you need to maintain a normal life. If you think you may need help with your debt, you would be well-advised to speak with a bankruptcy attorney that can provide you straight answers and a real legal perspective on your options.

What Is Being Done About Debt Settlement?

questions@castlelaw.net (Blog Author)18705 — Mon, 21 Sep 2009 08:00:00 EST

Every morning on my way to the office, I hear the same commercial. It promises anyone who suffers from credit card or medical debt the chance to march into their banks and proclaim that they don’t intend to pay their debt. I know, I know, you are saying, “But James! That sounds great!” And in a perfect world, you would be right. Unfortunately, 15 years of experience in the debt relief business has told me that it just isn’t true.

In July, 13,000 credit card holders were the victims of fraud by a Florida based group of debt settlement firms. Stories like these are hardly newsworthy anymore. You could probably write an entire newspaper about scams carried about by debt settlement agencies. The internet and yellow pages are filled with advertisements for debt settlement firms—and how will you ever know if it is a scam? The principle idea of debt settlement is flawed anyway. It settles your debt for a hefty fee and still can’t protect you from the legal ramifications of debt.

The FTC took a strike against the credit repair industry with Operation Clean Sweep. So, how are we fighting debt settlement scams? Bankruptcy takes a stand against this sort of fraud. It provides a legal way for consumers to get relief from their debt—and protects them from harassing creditor calls, wage garnishments, and other legal actions taken by creditors. Before deciding that debt settlement is an option for you, you would be well-advised to find out the truth about bankruptcy and how it might be the best—and safest—way to get relief.

Life After Bankruptcy: Save On Utilities

questions@castlelaw.net (Blog Author)18676 — Mon, 21 Sep 2009 08:00:00 EST

Being financially responsible is imperative in the years after you have declared bankruptcy, but in many cases there are easy ways to save money in your own home without sacrificing comfort. Here are a few tips on how to keep your utility bills lower and save money in your journey after bankruptcy:

· Turn down your thermostat. One degree doesn't sound like much, but it can save you one percent of your energy bill each month. Turning it down five degree will save you five percent.

· Replace your light bulbs with LED or fluorescent lights. Although they cost more initially, they will save you money in the long run.

· Unplug electronics you are not using, like your cell phone charger. Anything that is plugged in is using energy - and costing you money.

· Time your showers. Even cutting one or two minutes from your shower will save 700 gallons of water per month.

These tips not only save you money each month - they also conserve resources and help the environment.

Is The Housing Crisis Over?

questions@castlelaw.net (Blog Author)18675 — Mon, 21 Sep 2009 08:00:00 EST

With the first time homebuyer tax credit, a strong summer of home sales, and a growing number of new constructions, some signs point to a recovering housing market - but are we out of the woods?

Many point to the dropping rate of foreclosures across the country - the rate of foreclosures dropped by one percent from July 2009 to August 2009. However, the rate of foreclosures is still up 18% from this time last year.

Another consideration is the continuing weak economy. As long as unemployment numbers are high and as long as many are losing their health insurance coverage along with their jobs, families will continue to struggle to pay their mortgages or find themselves facing an unexpected financial or medical emergency. In addition, the new homebuyer tax credit may take extra inventory off of the market and act as a temporary solution, but it comes to an end in a matter of weeks. Unfortunately, we don't yet know what the near future holds - for those nearing foreclosure, for those with upside-down mortgages, or for new homebuyers.

New Credit Card Laws May Change Debt in America

questions@castlelaw.net (Blog Author)18558 — Fri, 18 Sep 2009 08:00:00 EST

I’m sure you get tons of credit card offers in the mail. They all come with tempting offers of low interest rates and no annual fees. But, before checking that box that says, “Yes! Send me my new card!” I ask myself a few questions. How many credit cards do I really need? Does the fine print tell me something different than this great offer?

I realize that a number of people don’t ask themselves these questions. The numbers are so staggering, in fact, that the President has signed a bill attempting to help those suffering through credit card debt.

The Credit Card Accountability, Responsibility, and Disclosure Act attempts to keep credit card companies from using those all too familiar tactics that credit card companies use to keep us paying the premium rates.

Credit card companies are limited on when they can raise their rates. They can still, however, raise rates anytime on new balances with 45 days notice.

There are new restrictions on fees and age limits for being approved for a credit card. The laws have also eliminated double cycle billing (charging interest on debt paid the previous month), change the way your payments are allocated, increased the time period you have to pay your bill, and extended the expiration dates for gift cards.

Though credit card companies will be more lenient, you are still being held responsible for your actions. If you have gotten in over your head in debt, you will still need to seek help.

A Foreclosure Can Affect More Than Just Your Credit Report.

questions@castlelaw.net (Blog Author)18557 — Fri, 18 Sep 2009 08:00:00 EST

Getting a foreclosure notice in the mail can be devastating. The home that you have built for you and your family over many years can be taken from you in a matter of weeks. But, when you decide to accept your foreclosure, you may be forgetting something.

With the foreclosure crisis in full swing, the negative effect it can have on our children is becoming more apparent. By 2010, experts are predicting that almost 8 million kids will have been the victim of a foreclosure.

What does that mean? That means 8 million kids will have to pack up all of their toys, move schools, experience overcrowding, or lose their feeling of security. It also means that less money will be flowing into your city to support school programs for safety and health.

Chapter 13 bankruptcy can stop a foreclosure. You can prevent them your children suffering the emotional trauma of having to leave their home and build a new life. If foreclosure can’t be avoided, the battle may not be over. You can still be held responsible for the debt that you owe to your mortgage lender if the home is not sold for at least the amount you owe—and they can garnish your wages to get it back. Chapter 7 bankruptcy can erase this balance and allow you to start a new life for your children without the worry of debts from foreclosure coming back to haunt you.

For more information, please visit the St. Louis Bankrutpcy Blog.

Even Celebrities Are Starting Over with Bankruptcy

questions@castlelaw.net (Blog Author)18328 — Mon, 14 Sep 2009 08:00:00 EST

It goes without saying that is shouldn't be a shock that there are some famous names in the news; the shock is that they are being associated with bankruptcy. Actor Stephen Baldwin, baseball star Lenny Dykstra, and actress Kim Basinger have all filed for bankruptcy protection recently. The consequences of overspending and not using a budget apply to everyone. Bankruptcy is a system built into the law to help people get control of their finances and it doesn’t exclude athletes and actors.

It has included Cyndi Lauper, who filed for bankruptcy after her first attempt to get into the music business. It has also included Donald Trump, who filed for bankruptcy after a failed casino venture. It even included famous fighter Mike Tyson, who filed for bankruptcy after he could no longer handle his mounting bills.

At the end of the day, all of these people are similar. They recognized a situation they could no longer handle and took responsibility for it. Now, our TV screens are filled with stories about their successes. They allowed themselves to move on with their lives and you can too.

America Reinvents and Bankruptcy Redefines

questions@castlelaw.net (Blog Author)18195 — Fri, 11 Sep 2009 08:00:00 EST

According to an article from MSNBC, President Obama has claimed the economy has stabilized. As America begins its slow recovery, the President wants to completely focus on relieving ordinary Americans. He plans to give towns hit hard by the recession a chance to "reinvent themselves" through a system of manufacturing grants.

Of course, the President's biggest challenge, as it has been through his entire campaign, will be to keep America positive. He asks Americans to be patient for the job market to rebound while the government sees through its initiatives that are separate from the stimulus package, which was aimed at helping big business.

I support the ability to reinvent yourself. I help people remake themselves everyday-not through grants or tax cuts, but through bankruptcy. Perhaps many of the stigmas associated with bankruptcy can be lifted as we allow America to reinvent itself. Bankruptcy, after all, is a reinvention. People with overwhelming financial situations are able to get a hold of their bills, help their credit return to normal, and start fresh.

Bankruptcy gives you a new start. It provides opportunities for you to take care of things that are really important, like your family. In this economic climate, it is especially clear that financial hardship falls on everyone. In essence, bankruptcy is a relief to your personal recession, providing you with more opportunity to be positive, be responsible, and succeed.

So, I urge you to redefine bankruptcy. It is time to think outside of the box. Are you ready?

Loan Modification May Not Be the Way to Save Your Home Anymore

questions@castlelaw.net (Blog Author)18161 — Thu, 10 Sep 2009 08:00:00 EST

There is no argument that preventing foreclosures is good for the housing market and even better for the home owner; but it seems the usual fall back, the loan modification, isn’t what it used to be.

Foreclosures are now at a record high—and expected to hit 2 million this year. It seems that companies like Bank of America and JP Morgan Chase are not prepared to handle it either.

Bank of America has only been able to modify 4% of loans that were more than 60 days past due.

The problem could be that the banks are overwhelmed with the staggering amount of people who’ve defaulted or they are feeling that the future of loan modifications is grim.

Foreclosures need to be stopped and bankruptcy can be the way to do it. More and more people are coming to the realization that bankruptcy isn’t so bad—and it is worth keeping their family from total crisis.

Are you behind on your mortgage? Do you want to know how bankruptcy can help you? Request a free copy of the latest debt guide, "Get Out of Debt: Secrets Your Creditors Don’t Want You to Know," and learn how to keep you and your family in your home.

Car Repossession: It Doesn't Have to Be a Desperate Situation

questions@castlelaw.net (Blog Author)18054 — Tue, 08 Sep 2009 08:00:00 EST

According to an article on Fox, a Kansas City man crashed into the side of his girlfriend’s house Saturday night. As it turns out, he was running from the repo man.

Car repossession is one of the biggest concerns that people have when they first come to see me. Under current law, once your car payment is considered delinquent (usually 60 days), it can be repossessed. Once your car is sold at auction, you can’t get it back. Plus, if the car is sold for less than you owe, they can garnish your wages to collect the rest of your debt.

This entire situation could have been prevented if he had taken a realistic look at his financial situation before he got himself into this much trouble. Bankruptcy can save your car from repossession and possibly retrieve it after it has been auctioned.
Now the question is: How will the driver afford to fix a car that he couldn’t even afford to make payments on?

The driver will need to start looking at some serious options for relieving his debt. He would be well-advised to contact a bankruptcy attorney that can help him avoid making these hasty (and poor) decisions.

How can you avoid this situation? Researching the warning signs of too much debt could give you a better idea of when the right time is to ask for help. You can start by requesting a FREE copy of my ultimate consumer guide, "Get Out of Debt."

Warning Signs That You Are in Financial Trouble

questions@castlelaw.net (Blog Author)17949 — Fri, 04 Sep 2009 08:00:00 EST

Do you know the warning signs of too much debt? Many people out there think that if they aren't behind on all of their bills or if their debts are getting paid by new (and maybe riskier) ways, they are not in trouble. That is why I've put together some questions to ask yourself about your situation--if you answer yes to any of these questions, you are probably already in financial trouble whether you realize it or not.

Are you spending more than 20 percent of net income on credit card bills?

Are you dipping into your savings to pay your monthly bills?

Are you using credit cards to pay for necessities, like groceries, because you don't have the cash?

Do you have more than 2 or 3 major credit cards?

Are you overdue on any of your bills?

Have you been denied additional credit?

Think about the answers to these questions. Did any of the answers surprise you? Knowing what you know about your situation, would you lend yourself more money? It is time to request my free consumer guide, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know."

Budgeting Tips: Increasing Income and Reducing Expenses

questions@castlelaw.net (Blog Author)17864 — Wed, 02 Sep 2009 08:00:00 EST

In order to have a budget that works, you have to make it all it can be. So, take a look at your situation and determine if any of these options could increase your income.

Earned Income Tax Credit. Check with a tax professional to see if you are eligible for this tax perk. It could add enough money to make the difference.

Government Programs. If you qualify, unemployment compensation, food stamps, and other assistance programs through the government could save you some extra dough.

Social Security or Disability Benefits. If you are over 62 or have been injured and can't work, these programs are designed to provide you with assistance.

You've increased your income--but how can you reduce your spending? Look at these tips for saving your cash (and your budget!)

Eliminate the temptation. If you know you overspend on every trip to Target or buy anything you see near the checkout counter at your grocery store, it is time to change your scenery.

Don't rent-to-own. You could end up spending twice or three time as much as the value of what you are buying.

Open a bank account. By opening a bank account, you can save money when you cash checks or get money orders. But be careful--look for free checking accounts and minimum balances that you know you can keep.

When the Times Get Tough, the Tough Make a Budget

questions@castlelaw.net (Blog Author)17475 — Wed, 26 Aug 2009 08:00:00 EST

If you are getting into trouble with money or have already gotten into trouble and need a new method, a budget is a perfect tool for you. Here are some pointers on making a budget that helps you take control.

Start with your income but only use sources of money that are guaranteed. If you start to write down money that you don't have yet, you may start spending money you don't have yet.

Be realistic about your expenses. You can start with looking at your credit card bill and your check book. This is the only way you can truly see where your money is going.

Be honest with yourself. Are you spending more money than you are making?

Be patient. A budget is a learning experience and should be treated thusly. If the first month isn't on target, keep working on your budget until you are comfortable with it.

If you get through your budget and realize you can no longer control your debt, it will be important for you to contact an attorney who specializes in debt relief immediately.

For more tips on making a budget that works, visit our blog.

Which Debts Do I Pay First?

questions@castlelaw.net (Blog Author)17466 — Wed, 26 Aug 2009 08:00:00 EST

When you are under debt, it is vital that you prioritize which debts to pay first. This article discusses some highlights from a series about choosing your debts. For more detailed information, please visit the St. Louis Bankruptcy Blog.

So where do you start? Your first duty is to your family. Any bills associated with keeping your family housed, fed, and healthy should be addressed. This includes your mortgage. If you are facing foreclosure, don’t panic. There are options available to help you save your home.

You should also be trying to pay any bill associated with the government like child support or back taxes. The government is not just any creditor—they have different methods for collecting your debt.

Debts that are not tied to your home, your car, or the government can be put at a lower priority. Credit card bills, doctor bills, and debts from store accounts fall under this category. But be careful—these debts must still be paid.

Here are some other guidelines that may help you prioritize your debt:

Don’t move a debt up in importance because a creditor is harassing you or threatening your credit score. Stick to the plan you’ve made.
Don’t ignore your debt.Taking no action won’t change your situation and will eventually make it worse.
Look at your options. It isn’t always easy to ask for help. If you ask yourself, "Is my situation going to be better soon?" and the answer is "No," you may want to consider a free consultation to get help with your debt.

Don’t wait to get help with your debt. If you’d like more information, you can go to our blog or request a free copy of my book, "Get Out of Debt: Secrets Your Creditors Don’t Want You to Know."

Consumer Bankruptcy Up 34 % In July

questions@castlelaw.net (Blog Author)16551 — Fri, 07 Aug 2009 08:00:00 EST

According to CNNMoney and the American Bankruptcy Institute, consumer bankruptcies across the country sharply increased in July, reaching its highest point since October of 2005 (when the bankruptcy laws were altered with the Bankruptcy Abuse Prevention and Consumer Protection Act). Analysts say the 34% surge in Chapter 7 and Chapter 13 bankruptcy filings reflect the struggling economy, the wounded housing market and the large number of layoffs. The unemployment rate across the country is at a 26-year high.

A staggering 126,434 people filed for bankruptcy in July, up more than 8 percent from June and up 34 percent over July of 2008. One out of three bankruptcy petitions were for Chapter 13 bankruptcy, which reorganizes a person's debts.

In addition to job loss and low real estate values, fiscal experts also say that those with jobs are not making any more than they did last year - many raises are being delayed or passed up altogether.

Study: Many People Declare Bankruptcy To Save Their Homes

questions@castlelaw.net (Blog Author)16512 — Thu, 06 Aug 2009 08:00:00 EST

According to a study conducted by Consumer Credit Counseling Service (CCCS) between April and July of this year, one in five consumers who declare bankruptcy this year will do so to avoid a home foreclosure. The study surveyed 50,385 bankruptcy filers, 10,682 of which said that the threat of home foreclosure was the number one reason they were seeking bankruptcy protection.

Altogether, 21.6 percent of those who filed for bankruptcy did so in order to save their house. Filing for Chapter 13 bankruptcy allows consumers to reorganize their debts and develop a repayment plan. Chapter 13 bankruptcy can protect homeowners from if filers can consistently pay their monthly mortgage payments. Mortgage terms aren't typically modified during a Chapter 13 bankruptcy.

"Our research shows that tens of thousands of Americans are turning to bankruptcy to avoid foreclosure," said Suzanne Boas, president of CCCS of Greater Atlanta, in a press release.

Bankruptcy Terms To Know: Liquidation

questions@castlelaw.net (Blog Author)14947 — Tue, 07 Jul 2009 08:00:00 EST

When you file for some types of bankruptcy, part of the process includes the liquidation of some of you assets. Very simply, you are selling some of your property in order to pay off some or all of your debts.

In personal bankruptcy, Chapter 7 bankruptcy is also known as liquidation. In this form of bankruptcy, a trustee or other appointee of your bankruptcy court will determine if you have assets for liquidation and handle the liquidation process.

It is important to understand, however, that not all of your assets will be liquidated. In many cases, valuables that you owe are exempt from the liquidation process - these assets may include your primary residence, your car, and other personal items or items of necessity. Items that fall into exempt status vary by state, so those considering Chapter 7 liquidation bankruptcy should consult a local attorney for more information about specific state bankruptcy laws.

Bankrupt GM To Cut 38 Dealerships In Missouri

questions@castlelaw.net (Blog Author)14876 — Mon, 06 Jul 2009 08:00:00 EST

After declaring bankruptcy, automaker GM is paring down their franchises across the country - including 38 different dealers in Missouri. This downsizing will shrink the 6,000 GM dealerships in the United State to just 3,600 of the company's best and most lucrative dealers.

Some dealers will be offered continued participation with the company, while others are being offered wind-down agreements. Those taking part in wind-downs will receive assistance from GM to help with their transition. In Kansas City, MO, Conklin-Fangman Motor Co. in Kansas City and Adams Chevrolet in Belton both received wind-down notices. Conklin-Fangman will appeal their wind-down decision - as about 45 other GM dealerships have done over the last month.

GM filed for bankruptcy on June 1, 2009, after a recent history of financial problems. Years of financial losses paired with the economic hardships of the last six months were too much for the behemoth car company to handle.

Help Available To Those Who Have Fallen Behind On Their Bills

questions@castlelaw.net (Blog Author)14552 — Tue, 30 Jun 2009 08:00:00 EST

St. Louis based Ameren UE has announced a program to help low income families that have fallen behind in their electric bills. priority will be given to lower income and disabled applicants and then others will be helped if there remain any funds available. This program is fully funded by Ameren UE and will not be charged to current customers. The goal is to reach those people currently choosing between having food on the table or keeping the lights on.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people with debt relief and avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

Bankruptcy Terms To Know: Automatic Stay

questions@castlelaw.net (Blog Author)14246 — Wed, 24 Jun 2009 08:00:00 EST

One of the most stressful aspects of bankruptcy is the pressure you are under by your creditors. Fortunately, the moment that you file for bankruptcy, an automatic stay prevents almost all creditors from harassing you while you during your bankruptcy case. An automatic stay prevents creditors from:

· Making calls to your house or sending letters to you regarding your debt.

· Filing a lawsuit regarding your debt.

· Refusing to issue a transcript or release other information based on your debt.

· Repossessing assets from your house.

· Going forward with a home foreclosure.

· Disconnecting your utilities, such as your water, electricity, or phone.

· Wage garnishments.

An automatic stay does come with a few exception: it may not stop those seeking alimony or child support, and it will not stop any criminal proceedings that you are involved in.

Bankruptcy Terms To Know: Wage Garnishment

questions@castlelaw.net (Blog Author)14203 — Tue, 23 Jun 2009 08:00:00 EST

Wage garnishment can seriously affect the quality of your life - and may be a good indicator that you should consider taking a serious look at your debts and the possibility of bankruptcy.

Wage garnishment is an extreme effort by your creditors to collect the money from you that they are owed. After trying to collect through other means, some creditors have the power to take money directly from your paycheck in order to satisfy debts. Wage garnishment can only happen as the result of a court order. Wage garnishment not only means that the amount of your take home pay is lowered - it also means that your employer will become aware of your financial troubles.

Wage garnishment is most common in child support cases and tax collection situations, but it is not unheard of for debt collection agencies to garnish wages for all types of debts, including credit card debts.

Bankruptcy Terms To Know: Asset

questions@castlelaw.net (Blog Author)11537 — Sun, 03 May 2009 08:00:00 EST

An asset is anything of value that is owned by an individual or by a company. Examples of assets include: property, money savings, vehicles, boats, insurance policies, jewelry, and stocks. While some assets must be liquidated during bankruptcy, some assets are exempt. There are a number of differences between exempt assets depending on which state you declare bankruptcy in, and depending on whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy.

In Chapter 7 bankruptcy, your unsecured debts (such as medical bills and credit card bills) are discharged, but your non-exempt assets are liquefied. In Chapter 13 bankruptcy, you are able to keep your assets and your debt is re-organized into a manageable plan. Chapter 13 bankruptcy makes it much more possible to keep assets such as your home, land, and car, but also does not wipe away debt in the same way that Chapter 7 does - your creditors have to be paid back over a number of years with the majority of your disposable income.

Terms To Know: Foreclosure

questions@castlelaw.net (Blog Author)11512 — Fri, 01 May 2009 08:00:00 EST

Very simply, foreclosure is the process of a creditor (such as a bank or mortgage company) claiming a property after a borrower has been delinquent in his or her payments. Foreclosures settle the debt between the property owner and the lender and result in the homeowner losing their rights to the property.

Foreclosure proceedings can begin after a homeowner's mortgage payment is 90 days late. However, the entire foreclosure process can take well over a year.

There are several strategies to avoiding foreclosure and keeping your house or property. First, you may pay back what you owe, along with interest, late fees, taxes, insurance, appraisal fees, attorney feels, court costs, and any other costs. Other alternatives to foreclosure include refinancing your mortgage, negotiating with your lender, or setting up a short sell. Chapter 13 bankruptcy is also one way that borrowers can keep a home that is in danger of foreclosure.

There were almost 275,00 foreclosure filings in the United States last month - and foreclosure activity has increased 20 percent just in the last year.

How Should I Use My Credit Card After A Bankruptcy?

questions@castlelaw.net (Blog Author)10861 — Sat, 11 Apr 2009 08:00:00 EST

After you have filed for bankruptcy, it is important to begin to build your credit immediately. One part of improving your credit is signing up for a credit card and using it regularly. However, you must use your credit card wisely in order to help your credit score instead of hurt it.

The rules on how to use your credit card after bankruptcy are very simple and straightforward:

· Stay well below your credit limit - don't even approach the upper limit.

· Pay your credit card bill on time!

· Pay more the minimum amount due each month, and if possible, pay it off altogether each month.

· Sign up for email reminders for paying your bill.

· Watch for account fees or a change in your APR.

· If you have any questions about charges to your card or your credit card in general, don't hesitate to call the company and talk to a representative.

· Don't spend money you don't have!

Bankruptcy And Your Horse

questions@castlelaw.net (Blog Author)10825 — Fri, 10 Apr 2009 08:00:00 EST

Most people wonder if they can keep their house if they declare bankruptcy - but in these days of economic hardship, in which the wealthy, too, have been affected, some are asking, can I keep my horse? An article at www.TheHorse.com explores the options for horse owners in financial trouble and runs down the difference between Chapter 7 and Chapter 13 options in regards to the stable.

In a Chapter 7 bankruptcy filing, the horse - and perhaps its accessories - would probably have to go. Although a debtor will be able to keep some property that is considered exempt, horses are considered non-exempt personal property and would most likely be sold to pay off creditors.

In a Chapter 13 bankruptcy, debtors would be more likely to keep their horses. In this type of filing, you would create a payment plan that is approved by the court and decide whether or not to keep your horse for yourself. Of course, if you are struggling to improve your credit and simplify your life, keeping an expensive animal such as a horse may be a financial burden whether or not you are allowed by law to keep it.

The Chicago Sun-Times Goes Bankrupt, Following Trend In Newspapers

questions@castlelaw.net (Blog Author)10607 — Fri, 03 Apr 2009 08:00:00 EST

According to CNN, the Sun-Times Media Group has filed for bankruptcy. The company not only owns the Chicago Sun-Times, but also 58 other new media print edition papers and online websites.

The paper announced that despite its financial troubles and bankruptcy filing, it would continue to regularly publish its papers and websites. In the meantime, it would focus on restructuring, reorganizing, and finding stability again. However, the Sun-Times has already implemented a number of cost-cutting measures in the past months in order to improve their dismal numbers - a weak economy and dwindling number of print-edition readers has paired together to make a tough market for all newspapers.

Jeremy Halbreich, the company's chief executive, says that the Sun-Times is looking into selling off assets and looking into new investments to keep operating in the future.

In the last year, 120 newspapers across the country have closed their doors due to the market climate, resulting in the loss of 21,000 jobs.

Bankruptcies Continue To Rise Sharply In Missouri

questions@castlelaw.net (Blog Author)10605 — Fri, 03 Apr 2009 08:00:00 EST

A new set of statistic has been published concerning the number of bankruptcies in Missouri, reports KOMU News Channel 8. The results are not surprising: as the stagnant economy continues and job losses rise, bankruptcy filings have risen 18% in Missouri and 30 percent nationwide.

In hard financial times, many are making the choice to start over and rebuild their credit by either filing for Chapter 7 or Chapter 13 bankruptcy. The vast majority of those filing for bankruptcy have gone through an illness, lost their job, or recently been through a divorce. Others are struggling with bad mortgages or credit card debt.

While many can fix their financial problems by tightening their belt, reorganizing their finances, or cutting back on expenses, others have found themselves with money problems with no other solution other than bankruptcy. Even though bankruptcy will appear on their credit record for seven years or more, it can be the best choice for some, especially in these times.

Illinois Heart Attack Patient Refused Service After Bankruptcy

questions@castlelaw.net (Blog Author)9497 — Sat, 28 Feb 2009 08:00:00 EST

Because of a glut of unpaid medical bills and three heart attacks, Ron Eaker of Champaign, Illinois was forced to file for bankruptcy. Three years later, their history of money issues led their long-time clinic, Carle Clinic, also in Champaign, Ill., to turn them away and cancel all appointments.

Doctors in private practices are not obligated to see patients by law as emergency room doctors are.

Eaker and his wife declared bankruptcy in 2004 - after three heart attacks and an almost-fatal brain aneurysm in his wife, the couple was over $100,000 in debt and it was the best option for moving their life forward. Eaker used to be a minister and then a nursing home administrator, until his heart attack lost him his job.

Luckily, the couple now has a good health insurance plan and receives care at a nearby clinic.

Even though Eaker did not want to declare bankruptcy, it was the best plan for him and his wife.

What Is Debt Stress Syndrome?

questions@castlelaw.net (Blog Author)9496 — Sat, 28 Feb 2009 08:00:00 EST

As bankruptcy rates and foreclosure rates soar around the country, millions of American families of all classes are feeling mounting pressure and stress from their debt and money problems. In fact, according to CBS News Report, doctors and psychiatrists have created a name for it: debt stress syndrome.

Stress, especially lots of it over long periods of time, can physically wear down the body and make you more susceptible to diseases and long-term, chronic health conditions. Stress can lead to heart disease, hypertension, and a weakened immune system. At the same time, it can exacerbate pre-existing conditions that you may have.

How can you fight debt stress syndrome? Doctors suggest that the number one step you can take toward relieving your stress is to simply confront your situation. Even if you have mountains of debt, there are options you can take to regain control of your life. Talk to your debt collectors, talk to your family, and talk to a legal professional about your situation. As soon as you begin to ask for help and as soon as you become proactive, the stress will begin to lift.

The Art of Bill Juggling

questions@castlelaw.net (Blog Author)8402 — Sat, 24 Jan 2009 08:00:00 EST

If this article isn't a sign of the times, I don't know what is.

If you follow this link:

http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/HowToNotPayyourBills.aspx

you will be taken to an article called "How to Not Pay Your Bills." This article does not teach you how to be a successful deadbeat, but rather it tells you which bills it is the safest to not pay based on the length of time before the consequences kick in. It also measures the weight of the consequences.

Not that we needed any more signs, but an article like this is definitely a signal that the economy is not going well.

If you or a loved one are considering filing for bankruptcy in St. Louis, contact the Castle Law Office for a free legal consultation today.

Good Advice on Credit Cards

questions@castlelaw.net (Blog Author)7960 — Fri, 09 Jan 2009 08:00:00 EST

Suze Orman just wrote a pretty good article on MSNBC.com about what you can expect from the credit card companies in 2009, and she also makes some great recommendations.

Here are a few:

Make it a priority to pay off your credit card balances.
Read every statement and all correspondence from your credit card company to make sure you are aware of any changes to your account, such as skyrocketing interest rates.
Work to get your FICO credit score above 720.
Be very careful where you turn to for help with credit card debt. Debt consolidators are often a very bad deal. The National Foundation for Credit Counseling is a smarter choice.
Resist the temptation to use retirement savings or a home equity line of credit to pay off credit card debt.

You can read the whole article by following this link.

http://www.msnbc.msn.com/id/28544648/

As always, if you live in the St. Louis area and are considering bankruptcy, contact the Castle Law Office for a free legal consultation today.

Things Might Start to Get Fair in July of 2010

questions@castlelaw.net (Blog Author)7482 — Mon, 22 Dec 2008 08:00:00 EST

In the most sweeping changes to credit cards in decades, federal regulators on Thursday approved new rules to crack down on so-called unfair and deceptive practices by card issuers, such as raising interest rates on existing debt. – USA Today, 12/17/2008

Well, hallelujah.

What these new rules will do when they kick in is prevent credit card companies from jacking up the rates on existing balances whenever they want for no apparent reason. It will also prevent them from putting a monthly payment towards the part of the balance with the lower interest rate when a cardholder has multiple balances.

They are basically enacting most of the rules that were part of “The Credit Card Holders Bill of Rights,” which was a piece of legislation that was working its way through the Senate and which we wrote about earlier this year.

While this is good news, we think it is somewhat sad that it took a global credit crunch and financial disaster for these new rules to get put into place. Surely the folks in charge can recognize loan sharking when they see it, can’t they? But apparently doing the right thing is simply not enough of an impetus where the banks are concerned.

You should also be aware that these rules will not kick in until July of 2010, so basically those of you with credit card debt are still at the whims the credit card companies until then.

If you have a credit card problem in St. Louis, cut them up and get to work on getting rid of your debt. If your debt seems insurmountable, contact the Castle Law Office for a free legal and financial consultation today.

Outstanding Personal Injury Attorney Sandra Rohrstaff from Fairfax, Virginia

questions@castlelaw.net (Blog Author)7291 — Mon, 15 Dec 2008 08:00:00 EST

Over the course of the last year, I have had the pleasure of working with Fairfax, Virginia personal injury attorney Sandra Rohrstaff within a goup of some of the smartest lawyers I know from around the country to develop new, curtting edge ideas about better representing our clients. Sandra is a partner in the law firm of Weiner, Rhorstaff & Spivey, PLC and has become quite the expert in handling personal injury claims against big insurance companies for the seriously injured.

In speaking with Sandra at our meetings over the last year, I really like how she has maintained the same philosophy in regards to client treatment. Sandra and the rest of the attorneys at Weiner, Rohrstaff & Spivey provide exceptional quality legal representation and the power of a large firm, while keeping the personal touch and individual attention only a small firm can provide.

When it comes to handling a personal injury case, Sandra is one of the best lawyers I know in Virginia. She truly cares about the outcome she receives for her clients and she is not afraid to take the insurance company to trial to fight for what is right. If you or someone you know are ever in a serious car accident in Virginia, you should check out her website or give her a call at (730) 273-9500.

Check out the list of Frequently Asked Questions to help you understand the accident claim process. Even if your accident didn't happen in Virginia, many of the answers found here will apply to your case.

Bankruptcy Is Not the End of the World

questions@castlelaw.net (Blog Author)7021 — Thu, 04 Dec 2008 08:00:00 EST

This story:

http://www.smartmoneydaily.com/personalfinance/to-bankruptcy-and-back-my-story.aspx

gives a pretty good illustration of a start to finish bankruptcy.

The writer found himself deep in credit card debt and unable to pay, which forced him to declare Chapter 7 bankruptcy.

What is important about this story is not only how he got through it, but the steps that he took to get his credit rating back to normal over the course of that seven years.

If you or a loved one in the St. Louis area is considering bankruptcy, contact the Castle Law Office for a free legal consultation today.

Game Show Winner of $1 Million Files Bankruptcy

questions@castlelaw.net (Blog Author)6975 — Wed, 03 Dec 2008 08:00:00 EST

I recently ran across this interesting news piece on ABCNews.go.com that may not be as forthcoming as it needs to be. It seems Kathy Cox, a school superintendent from the state of Georgia and a recent $1 million winner on the TV game show “Are You Smarter Than a Fifth Grader?,” recently became another housing crisis victim when she filed for bankruptcy.

According to a spokesman for Cox, in spite of declaring bankruptcy with more than $3.5 million in liabilities and less than $650,000 in assets (which is separate from her winnings), she still plans on upholding her promise of donating her winnings to two schools for deaf children and a school for the blind.

Cox is the co-signer on loans for Pebble Hill Homes, her husband, John Cox’s, home-building business, according to the Chapter 7 bankruptcy petition the couple filed on November 17. Cox, an earner of around $125,000 per year, said that she was unable to support the couple on her salary alone after a downturn in the home-building industry and as creditors sought after the assets of the couple.

I am going to monitor this story to see how it actually turns out. Having filed chapter 7 bankruptcy cases and chapter 13 cases now for over 14 years in St. Louis, this is not your typical case. Although I admire her desire to keep her promise to donate the money she won to charity, once she filed for bankruptcy, that decision might not be hers to make.

When a chapter 7 is filed, it creates an estate of all property owned at the time of filing and all property the debtor has a right to receive at the time of filing. If the money hasn't been paid to her yet from the game show, that money is property of the estate if won before she filed her case. In that situation, a chapter 7 trustee is not going to just let her give the money to charity, but will take the money to pay her creditors.

Even if she received the money before filing and already paid it to the charity, a chapter 7 trustee can avoid certain transactions to get that money back for the estate, especially if it was done within 90 days of filing. Ironically, if she filed her bankruptcy case on November 17 and won the money on November 18, it would not be a part of the bankruptcy estate and the trustee would not have any interest in it.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently helps people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

Landamerica Financial Group Obtains Bankruptcy Protection

questions@castlelaw.net (Blog Author)6974 — Wed, 03 Dec 2008 08:00:00 EST

On November 26, title insurer LandAmerica Financial Group announced its plans to file for bankruptcy protection, while competitor Fidelity National Financial Inc. announced that it will be acquiring three subsidiaries of LandAmerica.

The bankruptcy filing of LandAmerica’s holding company and subsidiary LandAmerica 1031 Exchange Services Inc. was announced mere days after Fidelity National, which is based out of Jacksonville, Florida, canceled an agreement to purchase all of LandAmerica, which is based out of Richmond, Virginia. The terms of that deal called for LandAmerica to be acquired by Fidelity National in an all-stock acquisition for approximately $128.4 million.

Chicago Title Insurance Co., a subsidiary of Fidelity National, is to acquire Commonwealth Land Title Insurance Co. for $158.6 million. Another Fidelity National unity, Fidelity National Title Insurance Co., is to acquire Lawyers Title Insurance Corp. and United Capital Title Insurance Co. for $139.4 million.

The units being purchased by Fidelity National remain solvent and continue operating. The acquisitions are expected to close as early as late December.

Beware of Online Borrowing

questions@castlelaw.net (Blog Author)6924 — Tue, 02 Dec 2008 08:00:00 EST

If you are seeking some extra money for the holiday season, the federal government is warning that it is risky to borrow from an Internet payday lender.

One site in particular has been closed in on by the Federal Trade Commission, www.cash2day4u.com. The site’s operators offered loans of up to $500 or less to consumers within 24 hours with no requirements of a credit check, proof of income, or other documentation.

Customers applying for a loan through the site were required to provide their bank account and Social Security numbers. However, there was a catch that the fees for the service ranged from $35 to $80 and if customers were unable to make payments, the lenders would be allowed to go into the customer’s bank account.

In the FTC complaint, the operators were charged with not disclosing in writing the annual percentage rate, payment schedule, amount financed, total number of payments and any late fees. Consumers complained that they were made to overpay their accounts and were required to close their bank accounts.

The FTC reported that many of the consumers had received “abusive and deceptive” collection calls from the operators aimed at regaining access to their accounts. They falsely threatened customers with arrests, lawsuits, seizure of property, or wage garnishment and called consumers, coworkers, and employers at their workplace numerous times using abusive language and disclosing the purported debts of consumers.

Unfortunately, I see honest, hard working people taken advantage of by the credit industry on a routine basis. Payday lenders are the last possible place you should look to when in need of some cash. In many cases, I have seen loan documents showing 400-500% annual interest rates on these short term loans. Although they accept a post-dated check from you, when you don't pay, they try to cash the check and if it bounces, they will try to prosecute you and send you to jail.

If you find yourself struggling to keep up with your debt, I know it's tempting to get a quick payday loan. I mean, what can it hurt, right? Well, I think you can see from the information here how bad these are for you. To find out additional things your creditors don't want you to know, I have written the consumer guide on the bankruptcy process so that the average, hard working family can get the information they need to make an informed decision. My guide, "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" is yours FREE by clicking on the title or calling toll free 1-866-570-8484.

St. Louis, Missouri bankruptcy attorney and Illinois bankruptcy lawyer James Brown of Castle Law Group has spent more than 14 years helping families file for chapter 7 bankruptcy and chapter 13 bankruptcy to stop the foreclosure of their home, repossession of their car and garnishment of wages.

Great Article on Foreclosure

questions@castlelaw.net (Blog Author)6617 — Wed, 26 Nov 2008 08:00:00 EST

One of the bigger misconceptions that we have had to battle here at the Castle Law Office is that people who go through bankruptcy are somehow in a problem of their own making. The idea that people who have to declare bankruptcy are simply lazy and irresponsible is one of the bigger misconceptions out there.

A recent article on CNN by credit counselor Gail Cunningham describes a more realistic scenario.

The vast majority of clients in St. Louis that we help through bankruptcy are dealing with forces that are beyond their control. They were hit with layoffs, illnesses or accidents, and the financial side effects of these events were simply too much for them to deal with.

Ms. Cunningham describes just such an event:

"For example, I'm reminded of the 46-year-old single mom's foreclosure problem that started with a heart attack. Out of work for three months with no income and medical bills compounding her existing debt, she was headed for foreclosure.

At the Castle Law Group, we hear stories like that way more often than we hear the preconceived social narrative of laziness.

If you or a loved one live in the St. Louis area and are considering bankruptcy, contact the Castle Law Group for a free legal consultation today.

Can Homeowners Association Dues be Discharged?

questions@castlelaw.net (Blog Author)6601 — Wed, 26 Nov 2008 08:00:00 EST

I typically have a lot of people come into the office that own condominiums with homeowners association dues along with it. Many of these folks have the same question, which is:

We live in a townhome development and over the past several years, the homeowners association fees have risen almost 20 percent per year. I lost my job earlier in the year and we have fallen three months behind on our HOA dues. If we file for bankruptcy, can we still be forced to pay our missed dues or have a lien filed against our home by the HOA if we don’t?

The answer is dependant upon a number of factors, including the date you are considering filing for bankruptcy and steps already taken by the HOA to collect your delinquent payments.The federal Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), or the New Bankruptcy Law, which went into effect nearly three years ago, seriously tightened federal bankruptcy laws. Though qualifying for a bankruptcy filing has been made much more difficult by the law, it also addresses specific rights and obligations of both a homeowner and an HOA when a bankrupt owner is in arrears on the monthly HOA dues. A debt owed to an HOA can be treated differently depending on whether you file a Chapter 13 bankruptcy or a Chapter 7 bankruptcy case.

If a lien has yet to be placed on your property, the act allows for a bankruptcy judge to discharge some or all of the dues and special assessments you were unable to pay before your filing date. In some states, a lien on the property is automatic based on current state laws, so the HOA does not have to do anything to make sure the lien is on the property. However, any dues or assessments levied after filing generally cannot be discharged.

If a lien has already been placed on your home, then the lien will have to be addressed in your bankruptcy case or the HOA can usually go forward with foreclosure. Federal bankruptcy laws can be complex and it would be wise for you to consult an experienced bankruptcy attorney.

St. Louis bankruptcy attorney James Brown with Castle Law Group has been helping victims of foreclosure to save their homes for over 15 years. To find out if this is an option for you, request our free book "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" or call for a free consultation at 1-866-570-8484. Castle Law Office helps families in St. Louis, Missouri and Illinois.

November Newsletter - Hot Off The Press

questions@castlelaw.net (Blog Author)6494 — Mon, 24 Nov 2008 08:00:00 EST

Just got done with my November newsletter. You can read it in its entirety by clicking here. My main story this month encourages us to be thankful for the things we do have and the future that we can acheive. Also, you will see a new question & answer section that I will change up every month. You can read all of our past newsletters in the library section of our website.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

Loan Modification - Not Your Saving Grace

questions@castlelaw.net (Blog Author)6493 — Mon, 24 Nov 2008 08:00:00 EST

I have many people that are contacting me now that are coming into contact with loan modification companies. The way they are contacting me are different, but in most cases, the end result is the same - the loan modification didn't go through as planned and I am about to lose my home.

Recently, I have had a surge of new consumers panicking to get in for an appointment to see about a Chapter 13 bankruptcy because they just found out that the loan modification promised fell through and foreclosure is in two days. I have also had a number of clients that called to close their file because they suddenly received an offer of loan modification and they don't need us any more.

One thing I learned years ago was that 9 times out of 10, these promises by mortgage companies and now loan modification outfits are full of false hope and in the end, they don't happen. I have a running bet with the staff on how long it will take before a client is back in to re-open their file after closing because they have worked it out with the mortgage company or they have a loan modification being worked on. Needless to say, even though we do not seriously bet money, no one will bet me anymore because they always come back in a panic.

I posted an article today called "Beware of The New Predators in Lending" and you can read more about this subject in our library section under Chapter 13.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

You Can't Get Rid of Debt By Sticking You Head in the Sand

questions@castlelaw.net (Blog Author)6338 — Wed, 19 Nov 2008 08:00:00 EST

In life, many people would rather avoid conflict. In fact, many people will simply choose to ignore any situation that comes up where conflict may arise. I have found that it is no different with consumers that owe money to bill collectors. When we, as human beings, are behind to a creditor and the collection agencies start coming, it is very tempting to simply ignore it by not answering the phone or deleting any message left.

However, ignoring the debt will not simply make it go away. In most cases, it will make matters much worse. I just finished an article about what your options are and what can happen when you ignore debts. You can read the article in our library section of our website. It is called "Can i Just Ignore My Debt and It Will Go Away?"

There are several sources that can help you with debt relief, but it may be advisable that you contact an experienced attorney to help you understand what is happening and what you can do.

St. Louis bankruptcy attorney James Brown with Castle Law Group has been helping victims of overwhelming debt to get their life back on track for over 15 years through a Chapter 7 bankruptcy or Chapter 13 bankruptcy case. To find out if this is an option for you, request our free book "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" or call for a free consultation at 1-866-570-8484. Castle Law Office helps families in St. Louis, Missouri and Illinois.

Is There Any Good News In A Financial Crisis?

questions@castlelaw.net (Blog Author)6258 — Mon, 17 Nov 2008 08:00:00 EST

I recently was involved in a discussion amongst other banruptcy attorneys and the subject of the economy came up as it has in most conversations these days. After we moaned and groaned about what got this country where it is and what's being promised now to make things better, I started thinking about whether or not things can get better from here. I think the answer is yes.

Some of the worst things that happen to us turn out to be the best opportunities. Today's opportunity: We're on our way to living a better life with our money and here's why. Although it is still uncertain if the market has bottomed out, if you really look at the situation, we, as consumers, hit bottom when the market was at it's highest. That was when we reached the end of the line on overextending ourselves on credit. When most people bought too much house or were talked into more home than they could afford through creative lending practices.

When the economy is really good and credit is easily obtained, the average consumer will naturally become burdened in more debt. Can we predict where we're going to be in 5 to 7 years? Or where mortgage interest rates will be? Or if we'll be in a position to afford the adjustable rate mortgage?. With so much easy credit floating around and lenders coming out with products that make anybody look like they have the ability to take on more debt, it is no wonder we had such a hard fall from grace the minute a market adjustment occurred.

As interest rates adjusted and legislation was passed to double the minimum payments required on credit cards, everyone began to feel the pinch. Consumers looked to bankruptcy laws to help get out of a mess they weren't solely responsible for. As more and more people sought debt relief, lenders made a push to change the bankruptcy laws because of the "abuse" by consumers. Althought this resulted in a temporary slowing of bankruptcy cases, the numbers now have risen to all time highs, leaving lenders and Congress wondering what happened.

Lenders themselves, like Washington Mutual, found themselves in the exact same position as the consumer - overextended on credit. Instead of seeking relief from the bankruptcy laws, Congress sees fit to offer a bailout to help them in their time of need. Now, General Motors, Ford and Chrysler are calling on the federal government for help.

So, with all that said, there is something good about what's happening right now. According to the latest statistics, we've slowed down our spending in retail stores. Credit card data shows that we've cut down using our plastic. Different polls around the country indicate we pledge to spend less and save more. These are good habits that we should have even in the best of times.

These are solid habits that build a stable financial base for us and our family. There is nothing wrong with wanting to be financially stable, about not wanting to use plastic or the equity in our home just because we can. Sure it will take some time to get a consumer-spending based economy running again if we're not spending. But after that time, what we have built will be a good basis for years to come.

When you have reached a financial bottom, there is no place to go but up. We are all in this together and America will do what it takes to regain the financial strength it needs to survive.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

Too Much Money For Forgiveness

questions@castlelaw.net (Blog Author)6130 — Wed, 12 Nov 2008 08:00:00 EST

The Comptroller of the Currency just made your life a lot harder.

Well, maybe not harder. He didn't actually ADD to your debt. He just killed a plan for you to be forgiven 40% of it.

A group of consmer advocacy groups and banks floated a plan to allow people who could not meet the terms of payment plans to have 40% of their debt forgiven.

The reason that they are throwing these plans out there is because too many people are defaulting on their credit card debt.
And with the economy currently in the state that it is in, credit card companies and banks are feeling the pain just like regular Americans.

Unfortunately for us..."the agency 'does not consider any plan that defers the timely recognition of loss as prudent, and any such proposal cannot be viewed favorably by us,' Timothy Long, senior deputy comptroller for bank supervision policy, said in a letter to the two groups dated Monday and made public Wednesday."

It is a rare thing where banks and especially credit card companies make an effort to actually help their debtors instead of burying them. It is a shame that the Comptroller of the Currency wouldn't allow them to do it.

If you or a loved one in the St. Louis area is considering filing for bankruptcy, contact the Castle Law Office for a free legal consultation today.

What Happens If My Landlord Is Foreclosed On?

questions@castlelaw.net (Blog Author)5982 — Fri, 07 Nov 2008 08:00:00 EST

Each day we hear more and more stories in the news about the struggling economy, housing prices, and mortgage problems. Foreclosure rates are increasing, especially among military-dense areas. In a recent article I found on Military.com, the question arose as to what happens if your landlord ceases payment on the mortgage on your house, causing it to enter foreclosure?

The bad news is that you will most likely need to move. Upon foreclosure, either the lender, a new homeowner, or an investor will purchase the home. When the property changes ownership, the purchaser almost always chooses termination of tenantship, except in the few states where it is not allowed. Depending upon your situation and the state the property is in, you may know months before, or possibly be legally evicted within days of the foreclosure sale.

There are several sources that can help you with foreclosure, but it may be advisable that you contact an experienced attorney to help you understand what is happening and what you can do.

St. Louis bankruptcy attorney James Brown with Castle Law Group has been helping victims of foreclosure to save their homes for over 15 years through a Chapter 7 bankruptcy or Chapter 13 bankruptcy case. To find out if this is an option for you, request our free book "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" or call for a free consultation at 1-866-570-8484. Castle Law Office helps families in St. Louis, Missouri and Illinois.

St. Louis Bankruptcy Lawyer James Brown Voted Best

questions@castlelaw.net (Blog Author)5828 — Thu, 30 Oct 2008 08:00:00 EST

Over the summer months, Missouri Lawyers Weekly, a respected and long running news source for the St. Louis community, sent out an announcement to vote for the attorney you would most want to have on your side in certain situations. Some of these included being accused of shooting someone, going through a divorce, etc.

One of the categories was the attorney you would want on your side if you were about to lose your home. St. Louis bankruptcy attorney James Brown with Castle Law Office was voted by the St. Louis community, including lawyers in the metropolitan area, as that person you would want to have there.

The award will be presented to Mr. Brown at a special luncheon to be held on October 30, 2008 at the Champions Club at Busch Stadium in St. louis, Missouri.

St. Louis, Missouri bankruptcy lawyer and Illinois bankruptcy attorney James Brown is the published author of "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" and "10 Must Know Secrets To The Life You Dreamed Of After Bankruptcy" and provides those books free of charge to anyone in Missouri and Illinois. People don't realize they have a number of options to consider when facing a bankruptcy or what to do after they file to get back on track. To learn more, you can go to our website or call Castle Law Group for free at 1-866-570-8484.

How Much Do I Have To Repay?

questions@castlelaw.net (Blog Author)5826 — Thu, 30 Oct 2008 08:00:00 EST

On Monday, the 8th Circuit Court of Appeals issued a consumer bankruptcy decision concerning the required commitment period of a Chapter 13 Plan based on whether someone is over or under the median. There has been conflicting opinions about what commitment period is required according to the language of the U.S. Bankruptcy Code which was amended in 2005, otherwise known as BAPCPA.

One thought is that if you are over the median family income for your family size, there is no choice and your commitment period is 60 months. On the other hand, there has been Courts out there that have held that even if you are above the median income, if your disposable income as a result of filling out the required means test form is zero, then your commitment period only needs to be 36 months.

The 8th Circuit ruled that based on the language and the intent of Congress, if a debtor's income is above the median for their family size, their commitment period is determined by the statute regardless of whether or not they have any disposable income. Therefore, if you are over the median, you must file a plan for not less than 60 months unless 100% of your creditors are paid in full.

Some good news did come out of the decision, however. The Court said that the Means Test form is simply a starting point and determines a person's disposable income based on income that may no longer exist. However, the ruling goes on to say that to arrive at projected disposable income for purposes of determining the correct plan payment, schedule I and J is used to provide a better understanding of what the debtor can truly afford.

You can read the entire opinion by clicking here: In re: Craig Matthew Frederickson

A Sign of Things to Come in Wisconsin

questions@castlelaw.net (Blog Author)5734 — Mon, 27 Oct 2008 08:00:00 EST

This article in the Milwaukee Journal-Sentinel describes how many people in Wisconsin are being sued by credit card companies for defaulting on their credit card debt.

http://www.jsonline.com/news/waukesha/33339959.html

It isn't much of a surprise that people in Wisconsin find themselves unable to pay their credit card bills when they are struggling to pay their rent, utilities and medical bills. You also have to consider that with the economy going downhill, it's almost a certainty that people are losing their jobs.

You can bet that this sort of thing isn't just staying within the borders of Wisconsin. People all over the country are suffering from the economic downturn, and of course that will include Missouri, Illinois, and everywhere in our area.

If you or a loved one is facing legal action from a credit card company, contact the Castle Law Office for a free legal consultation today.

Bankruptcy Filings Soar As Economy Suffers

questions@castlelaw.net (Blog Author)5599 — Wed, 22 Oct 2008 08:00:00 EST

I just posted an article in our news section titled "Bankruptcy Filings Hit An All-Time High" which reports that recent statistics published by Aacer, a reporting firm who gets their numbers from the court electronic filing system, estimates that the number of bankruptcy filings in 2008 could easily top the 1,000,000 mark. This will be the first time since the passage of the new bankruptcy law in 2005 that such levels have been seen.

With the weak economy and people that are extremely over-extended, I am not suprised that the bankruptcy filing numbers have climbed to these new heights. This trend could be seen back into mid-2007 as the general consumer figured out through good information sources that you could still file for bankruptcy protection and, if you did, you likely would not lose any of your property.

That is why I have written the consumer guide on the bankruptcy process so that the average, hard working family can get the information they need to make an informed decision. My guide, "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" is yours FREE by clicking on the title or calling toll free 1-866-570-8484.

Credit Report Must Report Bankruptcy Discharge

questions@castlelaw.net (Blog Author)5511 — Mon, 20 Oct 2008 08:00:00 EST

I just posted an article in our library section titled "Bankruptcy Filing Should Clear Credit Report" based on a recent California U.S. District Court case in which the federal Judge ordered that once debts are discharged in bankruptcy, they can no longer be reported with an outstanding balance. In addition, there must be clear language on the report itself which indicates the debt was discharged in bankruptcy.

The case, White v. Equifax, sets forth certain things that credit bureaus must do once debts are discharged in a Chapter 7 bankruptcy case. This decision should help end the constant struggle for debtors in trying to clean up their credit report after a bankruptcy case is completed.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book, "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case", or give us a call toll free at 1-866-570-8484.

Foreclosure: What To Tell Your Children

questions@castlelaw.net (Blog Author)5452 — Sat, 18 Oct 2008 08:00:00 EST

Going through a foreclosure is a very painful process. In many cases, a Chapter 13 bankruptcy can stop the foreclosure and provide the family a repayment plan and, more importantly, an opportunity to keep their home. But what if there are no options and the foreclosure is the most prudent thing to do? This happens in cases where the homeowner was able to get a loan on a property and can no longer afford the payment. How do you explain to your kids you are losing the only home they have know?

I ran across a blog post on MSN Money Central which discusses how to handle that situation and best explain what a foreclosure means to your child. The blog post is titled "Talking To A Child About Foreclosure" If you find yourself in this situation, this is good information you can use to educate your child.

St. Louis Bankruptcy Attorney James R. Brown On BetterTV.com

questions@castlelaw.net (Blog Author)5328 — Tue, 14 Oct 2008 08:00:00 EST

I was recently contacted by Los Angeles attorney Alexis Martin-Neeley about the difference between having a foreclosure on your record and filing bankruptcy. Alexis was doing research for a segment in response to a viewer question on BetterTV.com. I provided Alexis with some great content I have had the experience of learning over the years, as well as a copy of a book I authored and published called "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case"

I just received a link to view the segment and Alexis did a great job of informing the public about the foreclosure process and how a bankruptcy can help those in danger of facing a foreclosure. The segment is called "Buying a Home". In the segment, to my suprise, she mentions her source of information as from "one of the best consumer bankruptcy attorneys in the United States, James Brown". I am humbled and proud to have the honor of being referred to by my peers as one of the best simply for helping families in need.

The segment also has great discussion about rebuilding credit and the best steps to take to get back on your feet. The website listed in the video HelpfulBankruptcyTips.com will take you directly to my website.

Filing Bankruptcy In St. Louis No Longer Last Resort?

questions@castlelaw.net (Blog Author)5325 — Tue, 14 Oct 2008 08:00:00 EST

I have always know that filing bankruptcy in St. Louis is an option that the average person should find out more about before they get themselves too far into a bad situation they cannot get out of. With the further decline in today's economy, it is even more important to know all of your options. I just finished an article discussing this very issue called "Bankruptcy Is Becoming An Option Most People Can No Longer Ignore" and posted it on our website. It contains some very insightful information surrounding the bankruptcy process and the myths and rumours that have been promoted to prevent you from finding out the facts to see if it will help you.

Most people that come in end up finding out when it is too late. If they would have come in to see me sooner, I could have, in most cases, saved them a lot of headache and possibly saved them from losing their property to foreclosure, repossession or wage garnishment. In a recent story on CNBC, Geri Detweiler published an article discussing this very fact about the need to find out your options before you make mistakes that could cost you dearly. The article is titled "The Bankruptcy Option: More Than Just A Last Resort"

The biggest mistake people make is not knowing all of the facts before they make decisions in their life. Filing a bankruptcy is no exception. Even if you choose to file a bankruptcy case, there are many thnigs you need to avoid to keep your case from being dismissed. A proven, experienced bankruptcy attorney is vital to a successful case. That is exactly why I wrote the book "7 Critical Mistakes to Avoid The Dismissal of Your Bankruptcy Case" and it is yours absolutely free. Don't speak with any bankruptcy attorney (including me) or creditor until you have read this book.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book or give us a call toll free at 1-866-570-8484.

Credit Card Debt Calculator

questions@castlelaw.net (Blog Author)5271 — Mon, 13 Oct 2008 08:00:00 EST

If you know anything about credit cards, you should know by now that the biggest scam going is the minimum monthly payment. With the way the interest compounds, it can and would actually take you the rest of your life to pay off the principal if all you paid was the minimum debt every month.

If you follow this link, you can go to a site that provides a calculator that gives you a fairly simple way to figure out how much you should pay in order to get out from under credit card debt in an alloted period of time.

Take a look and see what sort of situation you are in.

October Newsletter Answers Question If You Will Lose Everything When Filing Bankruptcy in St. Louis

questions@castlelaw.net (Blog Author)5182 — Thu, 09 Oct 2008 08:00:00 EST

Just got done with my October newsletter. You can read it in its entirety by clicking here. My main story this month is about my best friend and wife, Sherrie Brown. We have been married for 24 years this month and I wanted everyone to get to know her. Also, you will see a new question & answer section that I will change up every month. This month discusses whether or not you will lose all of your property if you file for bankruptcy. You can read all of our past newsletters in the library section of our website.

The newsletter normally has great information about Chapter 7 bankruptcy and Chapter 13 bankruptcy in St. Louis Missouri and Illinois. St. Louis Bankruptcy Lawyer James Brown with Castle Law Office dedicates his life to helping families and children get through difficult times in their life.

Repo Man Becoming The Next Maytag Repairman? Why Filing Bankruptcy Insures You're Safe

questions@castlelaw.net (Blog Author)5181 — Thu, 09 Oct 2008 08:00:00 EST

It appears that with the economy seemingly coming to a grinding halt, more and more people are losing their homes to foreclosure and cars to repossession. That is what has been all over the news lately. But what happens to all of this property? Well, it normally would be sold at auction to the highest bidder and, hopefully, the bank or lender gets enough money out of the sale to pay off the loan. This is usually not the case, however, and when a piece of property like a house or car is sold for less than what is owed, a deficiency balance will be due for the difference and the lender will go after the original borrower - YOU.

But now, reports are indicating that automobile financing banks and lenders have way too much property that has been repossessed or foreclosed on and trying to sell it in an auction is becoming increasingly difficult without taking huge losses. A report titled "Cant' Pay Car Loan? Bank May Not Even Want It Back" on CNBC discusses that the repossession business is slowing way down as lenders are trying to work out more loans instead of taking the delinquent cars back.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

A $500 Hold On Your Visa When You Get Gas Is Now Reality

questions@castlelaw.net (Blog Author)5086 — Mon, 06 Oct 2008 08:00:00 EST

Due to the rising costs of gas prices and the increasing amount of theft and fraud with people trying to do whatever they can to fill up their tanks, Visa has changed their rules to allow gas station owners to place a hold of up to $500 on your Visa credit card or debit card to allow a check if the card is indeed valid.

I recently posted an article titled "Gas Stations Can Now Place $500 Hold On Your Visa Card" in the news section of our website. There you will find a link where you can watch the video story which recently aired on News Channel 4 in St. Louis. If you rountinely use a debit card, you will need to be extra careful to make sure you don't end up with insufficient funds charges from your bank because of the hold.

Text of the Credit Card Holders Bill of Rights

questions@castlelaw.net (Blog Author)4944 — Tue, 30 Sep 2008 08:00:00 EST

By following this link, you can see exactly what the provisions are in the recently passed Credit Cardholders Bill of Rights.

http://maloney.house.gov/documents/financial/h.r.5244billtext.pdf

You should definitely take a good look, because the odds are that it will be whittled down quite a bit when it gets sent through the Senate.

Merrill Lynch's Buyout: The Basics

questions@castlelaw.net (Blog Author)4943 — Tue, 30 Sep 2008 08:00:00 EST

If you follow this link you will find a pretty decent description of what exactly caused Merrill Lynch to be bought out by Bank of America.

A lot of the news can be a bit confusing if you don't have a background in finance. This article does a good job of explaining exactly what happened and (more importantly) why it happened.

Getting Credit In The Future Will Be Tougher

questions@castlelaw.net (Blog Author)4928 — Mon, 29 Sep 2008 08:00:00 EST

With all of the recent news about Congress having to bail out the lending industry, the question comes to mind how will our personal finance be affected and, more specifically, our ability to get credit in the future be affected. Well, it sure isn't going to be easier. In fact, with or without the bailout, consumers are going to see much tougher controls on lending by banks and mortgage companies in an effort to reduce their risk.

John Ulzheimer with Credit.com recently wrote an article discussing his views after watching President Bush's address to the nation about the current crises. You can read the article in it's entirety at MSNBC's On The Money.

St. Louis, Missouri bankruptcy lawyer and Illinois bankruptcy attorney James Brown with Castle Law Office is the published author of "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" and provides those books free of charge to anyone in Missouri and Illinois. People don't realize they have a number of options to consider when facing a foreclosure due to the St. Louis housing crisis. To learn more, you can go to our website or call us for free at 1-866-570-8484.

$700 Billion Bailout Bill Might Give Bankruptcy Judges Power To Modify Mortgages

questions@castlelaw.net (Blog Author)4821 — Thu, 25 Sep 2008 08:00:00 EST

The U.S. Congress is currently pushing through emergency legislation to provide $700 billion in funding to bailout the lending nightmare and to help turn the economy around. Lawmakers expect to reach an agreement and vote on the bill in the next few days and pass it on to President Bush for signing into law.

In an effort to help the average homeowner that is struggling with foreclosure, Democrats have added language to the bill which would allow bankruptcy judges to modify terms of a mortgage so they can get the debt relief they need in a Chapter 7 bankruptcy or Chapter 13 bankruptcy case. This is something the bankruptcy laws have never been able to do. Republicans are currently fighting the addition of this language and President Bush opposes it. You can read more about this effort in a news item I wrote called "Bankruptcy Proposal To Avoid Foreclosure Part of Government Bailout Legislation."

Now is the time for all consumers to contact their Congressman and urge them to vote in favor of keeping the bankruptcy language in the bill. If the federal government is going to step in and bail out huge corporations, then some relief should be afforded to the average citizen.

St. Louis, Missouri bankruptcy lawyer and Illinois bankruptcy attorney James Brown is the published author of "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" and provides those books free of charge to anyone in Missouri and Illinois. People don't realize they have a number of options to consider when facing a foreclosure. To learn more, you can go to our website or call us for free at 1-866-570-8484.

Bankruptcy Law Can Stop Creditor From Arresting You To Collect a Debt

questions@castlelaw.net (Blog Author)4769 — Tue, 23 Sep 2008 08:00:00 EST

I just finished reading an interesting article being reported on MSNBC about a St. Louis Bankruptcy Judge that ordered a small business owner to re-pay money to a person that was convicted of stealing from him prior to the bankruptcy filing. It appears that the small business owner, Mark Paveromo, continued to pursue criminal chares against Mark Koch even after the bankruptcy was filed and Mr. Koch was arrested.

Judge Charles Rendlen from the U.S. Bankruptcy Court for the Eastern District of Missouri ruled that Poveromo intentionally violated the bankruptcy stay on claims by causing Koch's arrest to collect on the debt. Judge Rendlen stated "Allowing a creditor to use the threat of incarceration on charges related to a prepetition debt undermines the most fundamental premise of bankruptcy law: the guarantee of equal treatment among creditors pursuant to the bankruptcy code."

Rendlen ordered Poveromo to pay back the restitution Koch had given him as well as attorney's fees and costs.

I think his opinion is a very powerful reminder of the protection the bankruptcy law can give to average consumers that are harrassed by bill collectors and, especially payday loan companies who love to use the threat of criminal prosecution to collect a debt. Filing for chapter 7 bankruptcy or chapter 13 bankruptcy should give you the peace of mind to get the debt relief you deserve without the worry of going to jail. The automatic stay provisions of the bankruptcy law, otherwise known as 11 U.S. C. §362, stop a creditor from any action to collect a debt that was incurred prior to filing bankruptcy.

You can read more on this story by visiting the news section of my website and clicking on the article "Why Criminal Charges Can Be Stopped By Filing Bankruptcy in St. Louis, Missouri."

Last Ditch Effort to Avoid Foreclosure

questions@castlelaw.net (Blog Author)4766 — Tue, 23 Sep 2008 08:00:00 EST

Are you stuck in a mortgage that you can't seem to get yourself out of? Is your home on the brink of foreclosure? This 'On The Money: Web Extra' shows you a few steps you can take to give yourself one last fighting chance against your mortgage company.

http://www.cnbc.com/id/26841906

However if you still find yourself in a position you cannot get out of, Castle Law Office of St. Louis and St. Louis bankruptcy attorney James Brown helps people put together a plan to save their home and get back on their feet. In many cases, a Chapter 13 repayment plan can stop the foreclosure and allow the Missouri and Illinois homeowner a chance to save their home. If things are too bad to save the home, in many cases a Chapter 7 can be considered to get the debt relief needed.

NBC Report Reveals That 85% of Women Are In Debt

questions@castlelaw.net (Blog Author)4693 — Fri, 19 Sep 2008 08:00:00 EST

A recent NBC report reveals that 85% of American women are in debt. The amount of debt is not just limited to mortgage loans and car loans, but much of the debt is credit card debt and signature loans. There are several important steps to take to begin the journey to get out of debt and build a better financial future.

I came across a segment on BetterTV.com prepared by one of my friends and colleagues, Los Angeles attorney Alexis Martin-Neeley, about the problem women are having with debt and what steps they can take to get back on their feet. The segment is titled Maxed Out .

Hopefully, the tips contained in Alexis' segment will help you get back on track. However, there are options available to you if you find yourself beyond being able to recover. If you feel like you are still falling behind and getting into a financial crisis, Castle Law Office has helped more than 20,000 families get the relief they need and obtain a discharge in a Chapter 7 or Chapter 13 bankruptcy.

Castle Law Group and St. Louis, Missouri and Illinois chapter 7 bankruptcy attorney and chapter 13 lawyer James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

September Newsletter Hot Off the Press

questions@castlelaw.net (Blog Author)4386 — Thu, 04 Sep 2008 08:00:00 EST

Just got done with my September newsletter. You can read it in its entirety by clicking here. My main story this month is the lessons I learned from my 16 year old son's recent auto accident. Also, you will see a new question & answer section that I will change up every month. You can read all of our past newsletters in the library section of our website.

4 Reasons Why Internet Loans Are A Bad Idea

questions@castlelaw.net (Blog Author)4384 — Thu, 04 Sep 2008 08:00:00 EST

If you are a fan of late night or daytime television, you have undoubtedly seen those endless commercials featuring actor Gary Coleman pushing cash loans from the Internet. The message is basically you can get a quick payment of cash right to your checking account with a simple application process.

The company being promoted by Gary Coleman is CashCall.com. As you can expect, if an offer is too good to be true, it probably is. In looking at the offer on the commercial and their website, this company takes advantage of people in many ways and you should be weary of taking any money from them.

I have just finished a more in depth article on "4 Reasons Why Internet Loans Are A Bad Idea". You can find it in the library section of our website.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

How To Be a Savvy Credit Card Holder

questions@castlelaw.net (Blog Author)4378 — Thu, 04 Sep 2008 08:00:00 EST

Castle Law Office of St. Louis is always looking for ways to help you stay out of a financial crisis. The best way to stay out of debt and prevent negative charges to your account is to make sure you are not spending money that you do not have. If you follow this guideline and pay your bills on time, you will not have to worry about the credit card companies raising rates or changing terms on you and keep you out of a difficult financial situation.

The following article provides you with 12 steps to credit card success, and as long as you follow these strategies you will be living in financial freedom. It is time for you, the consumer, to get smart about credit and beat the credit card issuers for a change.

If you feel like you are still falling behind and getting into a financial crisis, St. Louis, Missouri and Illinois bankruptcy attorney James R. Brown with Castle Law Office has helped more than 20,000 families get the relief they need and obtain a discharge in a Chapter 7 or Chapter 13 bankruptcy. For more information, order our Ultimate Debt Relief Package or call us for free at 1-866-570-8484.

Five Big Bills You Can Cut Now

questions@castlelaw.net (Blog Author)4354 — Wed, 03 Sep 2008 08:00:00 EST

Castle Law Group is constantly looking for ways to help the average consumer get the help they need to provide for their families, especially in today's harsh economy. As prices increase on every product from milk to gasoline, everyone is looking for quick and simple ways to cut expenses and save some extra cash. Fortunately there are several different ways to easily cut your expenses, however some will save more cash than others. Add up all your expenses, and you will see that you could cut your annual expenses by hundreds of dollars or more. I found an article that will show you five different ways you can go about cutting your expenses and saving up that extra cash for whatever it is you need. These tips will help you during this time of a struggling economy, and will still benefit you once the economy begins to thrive again.

If things continue to get worse and you feel that your debt and credit cards are out of control, or if you are facing a foreclosure, repossession or wage garnishment, St. Louis, Missouri and Illinois bankruptcy attorney James R. Brown with Castle Law Office has helped more than 20,000 families get the relief they need and obtain a discharge in a Chapter 7 or Chapter 13 bankruptcy. For more information, order our free Ultimate Debt Relief Package or call us for free at 1-866-570-8484

Credit Counseling "Services" Really Aren't

questions@castlelaw.net (Blog Author)4308 — Sun, 31 Aug 2008 08:00:00 EST

Before you go running to the services of a debt relief agency, you should read this article in Consumer Affairs.

You will find that while there are a few credit counseling services that do good work, there are plenty who won't do much for you, and some who will even prey on you in your moment of financial weakness.

http://www.consumeraffairs.com/debt_counsel/debt_counseling.html

Senior Citizens More Than Two Times Likely to File for Bankruptcy Relief

questions@castlelaw.net (Blog Author)4247 — Thu, 28 Aug 2008 08:00:00 EST

I just recently posted a news article on my website about a new report that will come out in January from the Consumer Bankruptcy Project citing very interesting statistics about senior citizens 55 years of age and older and the growing need for bankruptcy relief. The Consumer Bankruptcy Project is made up of a group of researchers from Harvard Law School. The report will appear in the January edition of the Harvard Law and Policy Review.

The growing cost of healthcare and the fixed income levels of most senior citizens has been the leading causes in this dramatic increase in the need for bankruptcy help. Castle Law Office and St. Louis bankruptcy attorney James Brown frequently represents senior citizens who are in similar circumstances. If you would like to find out more about the options you have, visit our website today or call us toll free at 1-866-570-8484.

Obama Supports Changes to Bankruptcy Process

questions@castlelaw.net (Blog Author)4246 — Thu, 28 Aug 2008 08:00:00 EST

In a speech given earlier in July, Senator Barack Obama has come forward to tell the American people that he has plans to change the bankruptcy laws to help ease the burden on certain groups of citizens like the elderly and military. He openly criticized his opponent, Senator John McCain for putting the needs of credit card companies and banks ahead of the average worker, according to an Atlanta Journal-Constitution story.

It's been a long time since there has been somebody in Washington to fight for the honest, average hard working American and help them get through this struggle of overwhelming debt. Quoted in a Wall Street Journal Article, law professor Robert Lawless of the University of Illinois indicated how Obama's targeted proposals are about as far as someone can go without saying that he would undo the 2005 bankruptcy law.

St. Louis, Missouri and Illinois bankruptcy attorney James Brown with Castle Law Office has been battling the credit industry for over 15 years helping over 20,000 families get the debt relief they need through a Chapter 7 or Chapter 13 bankruptcy case.

Record Number of People Helped to Avoid Foreclosure

questions@castlelaw.net (Blog Author)4245 — Thu, 28 Aug 2008 08:00:00 EST

New reports are out showing that across the US, record numbers of families have avoided foreclosure through loan workouts of some kind according to Hope Now, an organization prompted by the U.S. Department of Treasury last October to reach out to families in danger of foreclosure. In July, more than 192,000 borrowers took advantage of some type of restructuring their mortgage to avoid losing their home. You can read more on these reports by clicking here.

Of course, many more families either cannot qualify for this kind of help or do not know it is available to them. Castle Law Office of St. Louis and St. Louis bankruptcy attorney James Brown help people to put together a plan to save their home and get back on their feet. In many cases, a Chapter 13 repayment plan can stop the foreclosure and allow the Missouri and Illinois homeowner a chance to save their home. If things are too bad to save the home, in many cases a Chapter 7 can be considered to get the debt relief needed.

James Brown is the published author of "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" and provides those books free of charge to anyone in Missouri and Illinois. People don't realize they have a number of options to consider when facing a foreclosure. To learn more, you can go to our website or call us for free at 1-866-570-8484.

Consumer Credit Counseling Service Not All It's Cracked Up To Be.

questions@castlelaw.net (Blog Author)4179 — Mon, 25 Aug 2008 08:00:00 EST

I just posted a news item about an article I recently ran across on the consumer credit counseling agencies that you will want to take a look at before you consider using them as an alternative to bankruptcy. You can find this an other useful news items in our News section.

Castle Law Office has represented over 20,000 families in the St. Louis, Missouri and Illinois areas file for bankruptcy relief. If you would like to find out more, check out the information on our website or call us toll free at 1-866-570-8484.

Confessions of a Subprime Lender Revealed

questions@castlelaw.net (Blog Author)4079 — Thu, 21 Aug 2008 08:00:00 EST

I recently ran across an article and video that reveals the tactics used by many in the subprime lending business to lure people into loans they cannot afford. You can read the full article in the News section of this website. It is a shame that so many people are getting caught up in this mess in an honest attempt to provide a home for their family. The unfortunate result is that more homes are going into foreclosure than ever before.

The good news is there is releif available through a Chapter 7 or Chapter 13 bankruptcy. If you simply want to get out of the loan and surrender the property back to the lender, a Chapter 7 might be the best scenario for you. If you want to save the home and continue to make payments on it, you should contact us to check into whether you qualify for a Chapter 13 bankruptcy.

A Chapter 7 or Chapter 13 bankruptcy can be a complex case which, if not done properly, could lead to the loss of your property or dismissal of your case. Before you talk with any creditor or lawyer about your situation, you should request a copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case". I wrote the book so you would be informed about the options you have and what to do to avoid bad things from happening in your case.

Castle Law Office has represented over 20,000 families in the last 15 years successfully get their debt under control and get the relief they need. If you would like to find out more about the bankruptcy process, including the insider secrets the credit card companies don't want you to know, visit our main website. Or call our office toll free at 1-866-570-8484.

Want To Improve Credit? Don't Make The Mistake Of A Credit Protection Program

questions@castlelaw.net (Blog Author)4051 — Wed, 20 Aug 2008 08:00:00 EST

In today's economy with rising gas prices, inflation, the mortgage crisis and higher unemployment rates, it is not suprising that the number of bankruptcy cases being filed is on the rise. However, Chapter 7 and Chapter 13 bankruptcy is not for everyone. I am commonly asked as to what alternatives to bankruptcy there are.

One of those alternatives is credit protection programs. A credit protection program charges a monthly fee to basically monitor your credit score and alert you if something bad happens. These are mostly online credit protection programs that hook you into a yearly membership fee.

Here is the truth on these things:

   1. They first claim they will access a 3-in-1 credit report for you for a price. This is unnecessary as you can obtain the same    information for free by going to AnnualCreditReport.com.

   2. They also offer to monitor your credit activity every business day, but you can do the exact same thing by watching your bank statements.

    3.   If you feel like you must have a regular update on your credit report, instead of paying over $140 per year to one of these credit protection programs, you can sign up for this service at myFICO.com or one of the three credit bureaus and you will save over $100.00.

Finally, just monitoring your credit file will not necessarily mean you will be able to maintain or improve your credit score. There are several steps that you can take to stay on track without paying someone to do it. The first step should be to order a copy of my free book "10 Must Know Secrets to the Life You Dreamed of After Bankruptcy".

How Long Can A Creditor Try To Collect A Debt

questions@castlelaw.net (Blog Author)4038 — Tue, 19 Aug 2008 08:00:00 EST

Have you ever opened the mail to find a notice from a collection agency for a bill that you have no clue what it is for? After looking into it, you realize it is a debt from 10 years ago? The first question that usually comes to mind is: Do I have to pay for this?

Well, it comes down to the statute of limitations, which is legalese for the amount of time in which a lawsuit must be filed against you by that creditor. Every state has different lengths of time for their statute of limitations, but the Missouri limitations on enforcement are as follows:

              Open Account (credit card):    5 years
              Written Contract:                     10 years
              Domestic Judment:                10 years (renewable every 3 years)
              Foreign Judgment:                 10 years (renewable every 3 years)

For Illinois, use the following:

             Open Account (credit card):      5 years
             Written Contract:                       10 years
             Domestic Judgment:               20 years
             Foreign Judgment:                   use limitations period in foreign jurisdiction

Keep in mind that the statute of limitations on debt only means they cannot sue you after that time period has passed. However, it doesn't mean they have to stop trying to collect. In addition, even though the debt is old, it can still hurt your credit for as long as they are reporting the debt delinquent. Debts remain on your credit report for at least 7 years from the date of last reporting.

Finally, keep in mind that a few debts are not subject to the staute of limitations such as child support, student loans, taxes and certain fines.

Secret Ways Car Dealers Squeeze More From You Finally Revealed

questions@castlelaw.net (Blog Author)4037 — Tue, 19 Aug 2008 08:00:00 EST

It seems a recent poll has shown that car dealers do not make the majority of their money on the actual sale of the vehicles. Many people seem to think they make most of their profits on the re-sale of trade-ins, but that is not the case.

As a car shopper, once you have the deal worked out with your salesman and you are taken to the finance office, that is where you need to be on your toes. This is the place where all of the extras, features, taxes and insurance that you probably don't want or need are added into your loan agreement.

This is also the place where it is the easiest to get you to say YES. You are thrilled at getting the new car and in most cases, you simply tell the finance guy yes to all of those little things he suggests should be added to benefit your purchase. Normally, he does this by pointing out how smart you are and you wouldn't want to get caught without such extras.

It all seems easy enough, but when you roll all of those extras into your loan and finance it over 3-6 years, you are paying way more than you should be for the services provided.

The best advice is to do your homework before you go to the dealer. Know what your likely interest rate will be based on your credit score. Research all options for your vehicle before you get there so you don't get caught in the position of agreeing to suggested add-ons. And finally, always negotiate the actual price of the vehicle, not just what fits into a monthly payment for you.

Follow these guidelines and you can feel confident the next time you step into a car dealership to get that great deal.

If you would like to read more, click here.

Penalties Make Up HALF of Credit Card Industry Profits

questions@castlelaw.net (Blog Author)3928 — Tue, 12 Aug 2008 08:00:00 EST

The Christian Science Monitor recently published an article that digs very deep into the less-than-ethical practices of the credit card industry.

Aside from mentioning the standard practice of changing interest rates for no reason at all, the author also makes the startling revelation that penalties make up half of the revenue of credit card companies.

For more information, follow the link below.

http://www.csmonitor.com/2008/0813/p09s01-coop.html

Tell the Feds About Your Credit Card Woes

questions@castlelaw.net (Blog Author)3692 — Wed, 30 Jul 2008 08:00:00 EST

The Federal Reserve Board is giving consumers a chance to finally speak their minds about the predatory lending practices of credit card companies.

To submit a comment on how your rates change with the wind or the pointless and absurd fees that you are charged on a regular basis, follow the link below.

This could all be leading to serious credit card reform, which is good for all of us.

http://www.federalreserve.gov/generalinfo/foia/ElectronicCommentForm.cfm?doc_id=R-1314&doc_ver=1&name=RegulationAA-UnfairorDeceptiveActsorPractices&date=20080502a

Questions About The Housing Bill?

questions@castlelaw.net (Blog Author)3691 — Wed, 30 Jul 2008 08:00:00 EST

A sweeping housing bill was signed into law today that should provide some relief to homeowners that are struggling under the mortgage crisis.

To find out how these new rules and regulations will affect you, follow the link below to a summary of the new law.

http://www.house.gov/apps/list/press/financialsvcs_dem/press072308.shtml

Merger Leads to Local Layoffs

questions@castlelaw.net (Blog Author)3103 — Thu, 19 Jun 2008 08:00:00 EST

As if the economy wasn't in enough trouble, things are about to get a little worse locally.

A merger at Thompson Reuters Corporation is expected to cause about 100 St. Louis area layoffs.

It's not as if the St. Louis area needs any more examples of how economic certainty can hit anyone at anytime, but this serves as a fine one.

http://stlouis.bizjournals.com/stlouis/stories/2008/06/16/story3.html

Is it the Competitive Spirit or is it Debt Collectors?

questions@castlelaw.net (Blog Author)3101 — Thu, 19 Jun 2008 08:00:00 EST

It turns out that Evander Holyfield isn't necessarily fighting past his prime because he wants to. It probably has something more to do with a stack of bills.

Holyfield has an enormous estate in Atlanta, and lives what is by all reports an extravagant lifestyle.

If you follow the link below, you'll find an article that will give you a better idea as to why Holyfield is planning on putting the gloves back on.

http://www.secondsout.com/World/news.cfm?ccs=225&cs=24850

Let's Go To The Movies

questions@castlelaw.net (Blog Author)2859 — Sat, 31 May 2008 08:00:00 EST

There is a wonderful documentary out called "Maxed Out."

It is a documentary that gives a real and accurate portrayal of the credit card industry and the people that make billions off of rigging the system.

This should be required viewing for everyone, and not just those that are in need of bankruptcy attorneys.

Follow the link below for more information.

http://www.maxedoutmovie.com/

More Than Suburban Tears for Real Housewife's Teresa

blog@www.castlelaw.net (News Author)16646 — Fri, 30 Jul 2010 08:00:00 EST

Teresa Giudice has found a new adversary, and it isn’t any of her fellow “Real Housewives of New Jersey” cast members.

According to court documents, the Bravo reality TV star and her husband, who filed for bankruptcy protection in the fall of 2009, are faced with a lawsuit that would prevent them from taking advantage of the debt discharge available to individuals under the Bankruptcy Code.

Chapter 7 trustee John Sywilok, tasked with rounding up the couple’s assets and distributing the proceeds to creditors, alleges that the couple concealed key documents about their finances and business transactions.

Allegedly, the Giudices concealed assets including a pizza parlor, a Laundromat, Teresa’s TG Fabulicious clothing and accessories company, and the “Skinny Italian” cookbooks Teresa authored. He also says the couple made false statements under oath about their assets, income, and expenses.

The suit is not the only reason the couple may be unhappy with Sywilok. In August, he aims to hold a public auction of the contents of the family’s recently built mansion in Towaco, New Jersey.

NFL Star Michael Vick's Bankruptcy Trouble

blog@www.castlelaw.net (News Author)16645 — Fri, 30 Jul 2010 08:00:00 EST

A bankruptcy trustee has demanded that NFL quarterback Michael Vick repay at least $2 million he gave to friends and family as he faced mounting legal trouble stemming from his role in a dogfighting operation, according to a report from the Associated Press.

The trustee overseeing the former Atlanta Falcon and now Philadelphia Eagle’s two-year-old bankruptcy case, Joseph J. Luzinski, says that the gifts should be the property of Vick’s creditors.

Unwinding such transitions, which are referred to as fraudulent transfers, that occur in the months leading up to a bankruptcy filing is a common incidence in both personal and business bankruptcy cases.

According to what Luzinski’s attorney told the AP, they are not filing suit against Vick or accusing him of fraud. Rather, the demand regards “the proper distribution of assets Vick had before his bankruptcy.”

Luzinski said that Vick gave gifts to his mother, his fiancé, several of his friends, and his brother, Marcus, a former football player.

Vick’s attorney said that he wasn’t trying to do anything illegal, he was simply “being generous to his friends and family.”

Upon his 2008 Chapter 11 bankruptcy protection filing, Vick claimed to have $20 million in debt.

Hostess Closes Wonder Bread Thrift Stores In Missouri After Bankruptcy

blog@www.castlelaw.net (News Author)16409 — Sun, 25 Jul 2010 08:00:00 EST

As part of a post-bankruptcy strategy, bread and sweets maker Wonderbread is closing several Missouri-area Hostess outlets. Wonderbread closed a number of stores around the country in the past weeks and months – either stores that had high leases or stores that were not making a significant profit for the company.

In Missouri, bakery outlet stores were closed in Farmington and Brentwood. In St. Louis area itself, stores were closed in Edwardsville, Collinsville, Belleville and Swansea. The store in Edwardsville had been open since the 1960s, with many local residents remembering the Wonderbread store from the time that they were children.

Hostess has an operating center in Kansas City, Missouri, and has an eight-decade history of producing breads, crackers, cookies, cakes, and other sweets. However, the company declared bankruptcy at the end of 2008 and emerged from bankruptcy in February 2009. Company executives said that their popular baked goods were not so popular when Americans started to choose whole grains and stay away from some of their sweeter products, such as Twinkies and Hostess cupcakes.

Now, emerging from bankruptcy, the company is trying become more efficient and to offer customers a larger selection of healthier products. In addition, they plan on focusing more on convenience store sales and better understanding the new and changing market. However, it will be a long and tough road to re-band such a well-known line of products.

Interstate Bakeries has 30 factories across the country and over 500 bakery outlets.

Will Unemployment Extension Delays Mean More Missouri Bankruptcy?

blog@www.castlelaw.net (News Author)16408 — Sat, 24 Jul 2010 08:00:00 EST

For millions of Americans, jobless benefits are running out. While the economy is slowly improving after the recession, many across the country have been out of work for more than six months and are facing harsh months ahead, especially if the Senate continues to struggle passing an unemployment extension. While some argue that extending unemployment for those who have been without work for over six months is a poor idea that will lead to a lethargic workforce, others believe that extending unemployment will allow millions of Americans to keep their houses and their savings while they continue to look for new jobs.

One single mom from Missouri wrote that after she lost her job during the recession, she burned through her savings and her 401k before losing her home and then declaring bankruptcy. She now lives with her parents. She believes that not extending unemployment benefits will continue an unhealthy cycle of loan defaults and foreclosures – not to mention break up families.

The Senate could pass the unemployment extension as early as today – a move that many say could save 2.5 million people from falling behind on their mortgage payments or declaring bankruptcy. While the economic recovery is seeing improvements in many ways, such as the housing market, stock market, and consumer spending, the lack of jobs continues to be an issue for many in Missouri and Illinois. While the government provides those experiencing tough times to collect unemployment for six months after losing their jobs, the seriousness of the recent recession has government officials lobbying for more support for out-of-work Americans.

Donald Trump's Entertainment Company Turns to Chapter 11 Bankruptcy

blog@www.castlelaw.net (News Author)16430 — Fri, 23 Jul 2010 08:00:00 EST

On July 16, Trump Entertainment Resorts, the Atlantic City casino company founded by celebrity developer Donald Trump, said that it emerged from Chapter 11 reorganization – for the third time.

The operator of three casinos in Atlantic City, New Jersey, said that $225 million in new equity had been injected into the company, including $125 million intended to be used to reduce pre-petition debt, in accordance with its reorganization plan.

The company also noted that it has reduced its debt load by about $1.3 billion and will continue using the Trump brand. The company’s statement said that the required approvals had been granted by the New Jersey Casino Control Commission earlier in the week.

In February 2009, Trump Entertainment filed for bankruptcy protection due to a heavy load of debt and a decline in gaming revenue. Trump resigned as chairman shortly before the bankruptcy.

The bankruptcy case became a battle between billionaires. Marc Lasry of Avenue Capital Group was the largest bondholder for the company. He was at odds with Andy Beal, a banker from Texas who held the company’s secured debt.

When Trump changed his allegiance from Beal to Lasry, Beal brought another billionaire, Carl Icahn, on his side.

In the end, the judge sided with Trump and Lasry, who became the reorganized company’s chairman.

During the reorganization, Trump’s pre-bankruptcy stake was wiped out. However, he will acquire up to 10 percent as part of the group investing in the reorganized company’s equity.

The largest stake of Trump Entertainment is owned by Avenue Capital, which invests in financially hobbled companies.

Trump Enterprises was originally founded in the 1980s. The company’s first bankruptcy filing came in the early 1990s. The company emerged with a new Trump name, but filed for bankruptcy a second time in 2004, emerging in 2005 as the current company.

Home Loans Becoming Harder to Pay

blog@www.castlelaw.net (News Author)16429 — Fri, 23 Jul 2010 08:00:00 EST

Americans are finding home equity loan rates to be more and more difficult to pay. In order to make their monthly mortgage payments, more and more people in the U.S. are attempting to cut their costs by renting space in their home, cutting things line phone service, or canceling insurances. Some find solutions such as these to pay their home equity loan rates, but it hasn’t been easy for everyone.

Because of the difficult times, it is believed that more than one million American households could potentially lose their homes to foreclosure, as lenders have a large number of borrowers who have fallen behind on their loans. During the first six months of 2010, nearly 528,000 homes were taken over by lenders and foreclosures continue at that rate, we could see that number increase to 2010 to more than 900,000 homes, which was the number of homes repossessed in 2009, according foreclosure listing service RealtyTrac Inc.

RealtyTrac senior vice president Rick Sharga said such a climb “would be unprecedented,” adding that lenders have historically taken more than 100,000 in a year. Recent signs of economic recovery have been seen in the past few months, but this surge reflects that the crisis still exists. Many homeowners have been struggling to pay their home equity loan rates, but in order to make their monthly payments, they had little success in negotiating more deals.

RealtyTrac said the number of homeowners receiving legal warning that they could lose their home rose by eight percent in the first half of 2010 from the same period in 2009. Between January and June, nearly 1.7 million homeowners received foreclosure-related warnings, which is one of several steps in the foreclosure process. That means that one out of every 78 homes nationwide receive a foreclosure warning.

Home Loans Becoming Harder to Pay

blog@www.castlelaw.net (News Author)16428 — Fri, 23 Jul 2010 08:00:00 EST

Foreclosures Still on the Rise in Missouri and Kansas

blog@www.castlelaw.net (News Author)16427 — Fri, 23 Jul 2010 08:00:00 EST

According to statistics from RealtyTrac, foreclosure activity in Missouri and Kansas saw a significant increase in the first half of 2010 in comparison to the first half of 2009.

The report said that 17,242 properties in Missouri received some sort of foreclosure notice, which was 0.65 percent, or one out of every 155 properties. That number was an increase of 24.22 percent from the first half of 2009. However, Missouri was ranked No. 30 among states, meaning that 29 states had a worse rate.

There were 6,602 properties receiving a foreclosure notice in Kansas, which was 0.54 percent, or one out of every 186 properties. That number was an increase of 41.67 from the first half of last year. But Kansas’ foreclosure rate was ranked better than Missouri’s, at No. 34 among states.

Across the U.S., there were more than 1.65 million properties in foreclosure during the first half of the year, an increase of 8.26 percent from the first half of 2009.

The states with the worst ratings for foreclosure were Nevada, Arizona, Florida, and California. Nearly six percent of housing units in Nevada, or one out of every 17, received at least one foreclosure filing in the first half of 2010. Arizona’s rate was 3.35 percent, or one out of every 30, Florida’s was 3.15 percent, or one out of every 32, and California’s was 2.54 percent, or one out of every 39.

Tronox Inc Changes Loan to Allow Reorganization

blog@www.castlelaw.net (News Author)16426 — Fri, 23 Jul 2010 08:00:00 EST

A judge has given approval to bankrupt chemical maker Tronox Inc. to amend a loan agreement after missed deadlines that could have opened the way for lenders to force the company into liquidation.

At a hearing on June 24, U.S. Bankruptcy Judge Allan Gropper ruled that Tronox could make the changes it sought in the $425 million loan that funds operations as it reorganizes. The changes push the maturity date back to September 24. Without them, the loan would have been payable on June 24 and the lenders could have required the company to sell all of its assets, which would have brought lower recoveries to stakeholders.

Also under the agreement, Tronox is allowed to engage in “certain currency hedging activities” and fees are required to be paid to Goldman Sachs Lending Partners LLC, the administrative agent to the loan, and the lenders. Tronox, which filed for bankruptcy in January 2009, defaulted on its initial “debtor-in-possession” operating loan, and won court permission for the $425 million replacement loan in December. The changes were requested on June 15.

In its request, Tronox, which is based out of Oklahoma City, said that it has not filed a “disclosure statement” setting out the terms of a Chapter 11 reorganization or reached a settlement of government environmental claims, which would make compliance with current deadlines impossible.

The U.S. Trustee, the arm of the U.S. government that monitors bankruptcy cases, had objected to Tronox’s request, arguing that it intentionally failed to disclose documents and fees.

The objection from the government was resolved after Tronox submitted court papers disclosing a $2.13 million fee to the lenders, and a $250,000 administrative-agent fee to Goldman Sachs was revealed.

Tronox manufactures chemicals used in paints, coatings, plastics, paper, batteries, toothpaste, sunscreen, and shampoo.

The State Of Missouri's Bankruptcy Troubles

blog@www.castlelaw.net (News Author)16403 — Fri, 23 Jul 2010 08:00:00 EST

Technically speaking, states can’t declare bankruptcy although cities can. However, the state of Missouri fits the definition of being bankrupt – not only is the state government struggling to pay even basic bills, new research shows that each Missouri resident would have to fork over $5,000 to get their home state in the black again. All in all, according to the Institute for Truth in Accounting, Missouri needs $9.1 billion to pay off debts and get out of financial trouble.

In many ways, the state of Missouri is reflecting the tough financial times that many Missouri residents are suffering from. Missouri personal bankruptcies are higher than they have been since bankruptcy laws changed in 2005 – and business bankruptcies in Missouri and St. Louis are up from last year by double-digits.

However, although the state of Missouri is technically bankrupt – it does not have the assets available to pay its debts – Missouri officials are working hard to shrink debt and balance the budget. Missouri Governor Jay Nixon has already cut almost $1 billion in spending in order to tighten the state’s belt, though he has been concerned recently about finding money to pay state teacher pension plans and other bills.

Perhaps a spot of good new is that although Missouri is struggling financially, many other states in the union are faring even worse – some states would need to collect up to $60,000 from each of its residents in order to clear out their debt.

Is The State Of Illinois Going Bankrupt?

blog@www.castlelaw.net (News Author)16400 — Thu, 22 Jul 2010 08:00:00 EST

Unlike individuals, cities, or companies, states are not able to file for bankruptcy with the federal government. However, if a state is not able to pay its bills because of a lack of assets, that state may be considered technically bankrupt. Unfortunately, this seems to be the case with the state of Illinois. According to the Institute for Truth in Accounting, each resident of the state of Illinois would have to pay the local government $25,000 in order to get the state out of debt and back in business.

Currently according to Illinois’ comptroller Daniel Hynes, the state owes over five billion dollars to state-run organizations, including schools, rehabilitation centers, and child care centers. Overall, Hynes says that the state is $12 billion in debt and has stopped paying important and even essential bills. At the same time, however, state government officials have been slow to make difficult budget cuts or to raise taxes in order to alleviate the problem. While the state legislature has agreed to borrow billions of dollars simply in order to keep pension payments coming to state employees, interest rates are getting higher and higher – and borrowing could result in further debt down the road.

On a smaller scale, businesses and individuals in Illinois are also struggling with debt and bankruptcy. Bankruptcy rates in Illinois are the highest they have been in five years – and economists believe that rates will not return to normal for several years to come. The unemployment rate is also not dropping at an acceptable rate, with many unemployed workers losing homes, spending their retirement funds, or declaring bankruptcy.

Chicago Tribune's Bankruptcy Continues

blog@www.castlelaw.net (News Author)16275 — Fri, 16 Jul 2010 08:00:00 EST

In the spring of 2009, it appeared as if The Tribune Company was nearly done with its year-long bankruptcy ordeal. However, a report in the Wall Street Journal reveals that the newspaper and TV station owner’s hopes of finishing its reorganization soon have been placed on hold.

The delay comes from Tribune’s April settlement with bondholders. Upon reaching that agreement, Tribune believed a path had been paved for a clear emergence from Chapter 11 under the existing management. However, bank lenders, led by Oaktree Capital Management, complained that the bondholders’ deal would have resulted in them paying more than $400 million while Chairman Sam Zell and his original backers wouldn’t have to pay anything. Oaktree, which holds approximately 25 percent of Tribune’s debt, has mounted a legal challenge that could result in Tribune remaining in bankruptcy court well past the summer.

Creditors continue to give the Chicago-based company trouble and have filed court papers requesting the right to file suit against the parties involved with the company’s $8.2 billion leveraged buyout, which placed Zell, a Chicago real estate mogul, in the company’s chairman seat.

Philadelphia's The Inquirer's Parent Company Seeks Bankruptcy

blog@www.castlelaw.net (News Author)16274 — Fri, 16 Jul 2010 08:00:00 EST

On June 24, a hearing was planned for a federal bankruptcy judge to be asked to approve a reorganization plan that would surrender the parent company of Philadelphia’s The Inquirer to a collection of the firm’s creditors.

The decision of Chief Bankruptcy Judge Stephen Raslavich would conclude the contentious 17-month case.

The plan has some detractors, but has the support of the vast majority of the company’s creditors.

According to an attorney for Philadelphia Newspapers LLC, Raslavich is expected to approve the plan. The lead attorney for the senior lenders also expected confirmation.

On June 23, the plan received further support from the committee of unsecured creditors, which offered its support through a court filing.

Under the reorganization plan, Philadelphia Newspapers, owner of The Inquirer, the Philadelphia Daily News, and the website Philly.com, would become the property of Philadelphia Media Network Inc.

The plan would end the four-year ownership of a group of local investors led by Brian P. Tierney, the chief executive officer of the company. Knight Ridder Inc. owned the papers for more than 30 years prior to the McClatchy Co. purchasing them in 2006. They were then quickly sold to the Tierney group.

The new owner primarily consists of 16 banks and investment firms that held the bulk of Philadelphia Newspapers’ $318 million in secured debt. They won the company at an April auction, bidding $139 million.

The largest ownership shares belong to Alden Global Distressed Opportunities Fund (18.6 percent), Credit Suisse (18.1 percent), and Angelo, Gordon & Co. (17.2 percent).

The plan’s main opposition comes from employee pension funds and a number of individuals with pending libel suits against the papers and their reporters.

The pension funds are in opposition because the plan does not require the new owners to assume liability for the funds. The unions want assurances that, at the very least, the new owners will cover payment of the “withdrawal liability,” which is a portion of a pension fund’s shortfall created when an employer pulls out. The estimated withdrawal liability for the company is $150 million.

The individuals with pending libel suits oppose the plan because it limits which suits may go forward against the company or its reporters.

FairPoint Communication Seeks to Review Bankruptcy

blog@www.castlelaw.net (News Author)16273 — Fri, 16 Jul 2010 08:00:00 EST

Utility regulators in Maine are deliberating the bankruptcy reorganization plan of FairPoint Communications and its request to modify an agreement it entered into with the state when it took over the landline and Internet operations from Verizon.

On June 24, the Public Utility Commission met on FairPoint’s petition seeking approval of its bankruptcy plan and changes to the commission’s 2008 order approving FairPoint’s $2.3 billion purchase of Verizon’s Maine, New Hampshire, and Vermont properties.

Among other things, FairPoint wishes to delay its broadband expansion plans in the three states.

FairPoint, which is based out of North Carolina, seeks similar approvals in New Hampshire and Vermont. The company filed for Chapter 11 bankruptcy protection in October 2009.

Personal Bankruptcy Up 14% In First Six Months Of 2010

blog@www.castlelaw.net (News Author)16189 — Tue, 13 Jul 2010 08:00:00 EST

The national bankruptcy rate numbers are in for the first six months of 2010, and the news is not great. According to the American Bankruptcy Institute (ABI), the personal bankruptcy rate in the United States is up 14 percent compared to the first six months of 2009 – a rate that is almost as high as in 2005, when federal bankruptcy laws changed, causing a surge in filings.

Financial experts say that the increasingly high personal bankruptcy rates are caused by a confluence of recent problems, including the current unemployment rate, the bottoming out of the housing market, and the recent economic crisis. Generally, large amounts of debt paired with record low personal savings rates have also been a significant cause of bankruptcy. However, recent studies have also shown that a majority of bankruptcies has been caused by medical bills and medical emergencies – whether or not individuals were covered by health insurance plans.

While some would like to blame consumers for the rise in bankruptcies – saying that many irresponsible spending has factored into the problem – others say that years of predatory lending have finally had an effect on everyday families. In either case, bankruptcy experts say that the higher rates of bankruptcy will not subside any time soon. Many families who probably choose bankruptcy are still delaying the decision, while other families who wish to declare bankruptcy can’t afford the legal fees associated with the procedure. Currently, declaring Chapter 7 bankruptcy can cost a family roughly $1,500.

Horst Co Owners Leave Uncompleted Contracts and File for Bankruptcy

blog@www.castlelaw.net (News Author)16046 — Thu, 08 Jul 2010 08:00:00 EST

The owners of a business in Greeley, Colorado that shut down earlier in June without completing thousands of out-of-state orders have filed for Chapter 7 bankruptcy protection.

Husband and wife Tracy and Kristine Cantrell filed for bankruptcy two days after they vowed to complete the remaining orders in order to fulfill Horst Co.’s outstanding contracts, one including 11 cat condos secured by an $11,000 deposit on the work by an animal shelter in Ottawa, Kansas.

The bankruptcy notice was filed on June 10 in U.S. Bankruptcy Court and says that the couple had debts of more than $1.26 million owed to local and out-of-state businesses and agencies. That total includes over $533,000 in business loans and lines of credit with Advantage Bank. Last fall, Advantage was placed under a federal order to correct its unsound banking practices. The Cantrells inherited Horst, an animal enclosure manufacturing company, within the past few years from Dan and Martha Horst, the founders and parents of Kristine Cantrell.

In their filing, the Cantrells list more than 20 pages of business debts. The debts range from small items like a $30 speeding ticket in a rental car to utility, tax, and accounting bills to thousands in disputed claims and unfinished contracts. Also included in the filing are two pending lawsuits against the company from the Humane Society of Weld County for $25,000 and Tubular USA Inc. of Missouri for $67,867.

Two years ago, the Humane Society of Weld County paid Horst an upfront fee of $30,000 for some dog kennels. Executive Director Elaine Hicks says the Humane Society filed suit due to the kennels not having been completed in time and were in terrible condition upon the arrival of a partial order. She also said the kennels did not pass state inspection as the inspector said they were dangerous to the animals. Hicks said a $25,000 settlement had been reached, which they returned to court to try to enforce.

Smurfit-Stone Container Co to Move Out of Bankruptcy

blog@www.castlelaw.net (News Author)16044 — Thu, 08 Jul 2010 08:00:00 EST

A reorganization plan for Smurfit-Stone Container Corp. that will allow the company to emerge from bankruptcy protection on June 30 has received approval from a federal bankruptcy judge.

On June 21, Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, Delaware entered an order to confirm the “Joint Plan of Reorganization and Plan of Compromise and Arrangement” filed by Smurfit-Stone, its subsidiaries, and affiliates acting as debtors under Chapter 11 of the federal bankruptcy code, according to a news release from the company.

The Missouri-based company, which manufactures containerboard and packing materials, entered Chapter 11 in January 2009.

The company’s debtors include Canadian subsidiaries and parties to the companies’ Creditors Arrangement Act in Canada.

The judge’s action follows similar relief previously granted in Canada and positions Smurfit-Stone to emerge from Chapter 11 in the U.S. and from CCAA protection in Canada, according to the company.

Kansas and Missouri Higher than US Average in Foreclosures

blog@www.castlelaw.net (News Author)15889 — Wed, 30 Jun 2010 08:00:00 EST

A June 10 report from RealtyTrac shows that foreclosure activity in Kansas and Missouri remained higher than the national average in May. There were 1,200 households in Kansas in foreclosure actions in man, an increase of 37 percent from May 2009, and 3,800 households in Missouri in trouble with lenders, also an increase of 37 percent from May 2009.

One possible reason is that the housing crisis struck both the Pacific and Atlantic coasts early in the economic decline and those regions are beginning to show improvement. But in the Kansas and Missouri area, households continue to work through foreclosure problems.

The report says that across the U.S., the number of people faced with foreclosure was nearly flat from a year ago.

One-third fewer people are receiving legal warnings that they could lose their homes. Foreclosures are also receding in some of the hardest-hit cities.

However, the number of foreclosures continues to be extraordinarily high. Experts believe a major reason for the stabilization is banks allowing delinquent borrowers remain in their homes longer, instead of adding to the glut of foreclosed properties on the market. New consumer protection laws, which vary by state, also have led to borrowers being allowed to remain in their homes for a longer period of time.

In RealtyTrac’s report, it said that nearly 323,000 households, or one out of every 400, received a foreclosure-related notice in May, a 0.5 increase from May 2009, but a three percent decrease from April.

However, in a sign that the crisis is not yet over, the number of homeowners losing their homes to foreclosure reached a record high of nearly 94,000 in May.

Cape Girardeau County Ridden with Foreclosures

blog@www.castlelaw.net (News Author)15888 — Wed, 30 Jun 2010 08:00:00 EST

Foreclosures have reached record highs across the U.S., and Cape Girardeau County is no exception to that.

Janet Robert, who has served as the county’s recorder of deeds for the past 33 years, called the problem “broad and widespread,” saying, “It’s affected all subdivisions and segments of the population, no matter their income.”

So far in 2010, there have been 104 foreclosures filed in Cape Girardeau County, a number that is on pace to easily break the record number 186 set last year, Robert said. Foreclosures have increased in the county over the past four years, from 149 in 2007, to 170 in 2008, to 186 in 2009.

Dawn Dauer, senior vice president of Bank of Missouri in Cape Girardeau, cited job losses, lost profits for business owners in the down economy, and divorce situations where the partner who gains possession of the home is unable to continue making payments on just one income as some of the reasons for the recent spike.

Statistics from the Mortgage Bankers Association say that more than 4.6 percent of homeowners were in foreclosure in the first quarter of 2010 across the U.S. In the state of Missouri, 2.12 percent of homeowners were in foreclosure during the first quarter. Alaska had the lowest foreclosure rate among states, with 1.34 percent, and Nevada had the highest, with 14.03 percent.

The Mortgage Bankers Association also said that during the first quarter of the year, 8.5 percent of Missourians with mortgages were at least 30 days behind in their payments, near the national average of 9.4 percent.

St. Louis Business Bankruptcies See 20% Increase

blog@www.castlelaw.net (News Author)15887 — Wed, 30 Jun 2010 08:00:00 EST

According to a report released on June 8 by Hoffman Clark, a Clayton, Missouri-based accounting firm, bankruptcy filings for St. Louis businesses for the 12-month period ending March 31 saw an increase of 20 percent to 409, up from 341 fillings for the previous 12-month period, which ended March 31, 2009.

The total represents the highest number of St. Louis business bankruptcies since the 12-month period that ended March 31, 1992.

The firm said that filings for the most recent 12-month period were an increase of nearly three times the 133 filings for the same period in 2007, just prior to the beginning of the recent economic decline.

Bankruptcy filings for St. Louis businesses increased at a slower rate than U.S. total business bankruptcy filings for the same period. Nationwide, the number of filings saw an increase of 25 percent to 61,148 in the period ending on March 3 from 49,091 during the previous 12-month period.

The data are basing on filings with the U.S. Bankruptcy Court for the Eastern District of Missouri, with divisions covering St. Louis, Cape Girardeau, and Hannibal. The majority of the filings took place in St. Louis.

St. Louis Owner of TGI Friday's Talks Bankruptcy with Employees

blog@www.castlelaw.net (News Author)15777 — Fri, 25 Jun 2010 08:00:00 EST

On June 12, Steve Bell, President of Chesterfield-based Tricorp management company, which owns five TGI Friday’s restaurants in the St. Louis area, met behind closed doors with the employees of the Friday’s located in Creve Couer to clear recent talks of bankruptcy. Employees in attendance at the meeting would not give specifics about what was discussed and said they had been advised to not speak with any media.

The meeting’s purpose was to clarify the situation concerning the recent Chapter 11 Bankruptcy protection filing by Tricorp. The company filed for bankruptcy under the name BiState Bistro LLC.

According to what an anonymous source close to Tricorp corporate offices told Globe-Democrat.com, the troubles started when TGI Friday’s began requiring franchises to remodel their restaurants. That was confirmed by documents in the U.S. Bankruptcy Court for Eastern Missouri. The documents say that the remodeling expenses came around the same time revenue at its restaurants began dropping and the economy declined.

The anonymous source said that the belief was that the “revitalization of the restaurants” would result in a 15 percent increase in sales. But the return on the investment did not occur.

According to the source, Tricorp filed for bankruptcy under the names BiState Bistro and Primrose Properties because they wished to keep the situation from reaching public light. Reportedly, the general managers of the restaurants were kept informed, but they were told to remain silent in order for employees to not find out.

Another situation that harmed the Friday’s corporation was the closing of a Fayetteville, Arkansas restaurant due to a new 20-year-lease with Slevin Capital Investments Inc. BiState Bistro closed the location after being unable to renegotiate the lease’s terms.

Due to the sudden closing, Slevin Capital Investments filed suit against BiState Bistro. The ensuing lawsuit from the landlord contributed to the Chapter 11 filing.

Bell said business would continue as usual during the proceedings.

Loan Modification Scams on the Rise, Missouri Warns Residents

blog@www.castlelaw.net (News Author)15776 — Fri, 25 Jun 2010 08:00:00 EST

Federal and Missouri state officials are issuing warnings to homeowners facing the possibility of foreclosure of the growing scam of loan modification offers.

As foreclosure activity reaches close to record highs in the St. Louis area and elsewhere, the number of cases of homeowners being scammed into modifying their loans is also on a rapid rise.

According to the Federal Trade Commission, more than 6,000 people filed complaints in 2009 about these scams, in which homeowners can be coerced into paying an upfront fee to companies claiming that they will help with refinancing. According to Missouri Attorney General Chris Koster, complaints have seen a 1,000 percent increase since 2008.

At a June 11 press conference at the St. Louis Federal Reserve, Koster said that the consumer simply receives no services once the upfront fee is paid. He said that these companies, which are typically out of state and on the coasts, will draw consumers from Missouri in and “simply abandon them as soon as they have the consumers’ money.”

Koster said that his office is currently prosecuting approximately a dozen cases and conducting investigations into a dozen more.

Illinois Attorney General Lisa Madigan referred to the modification scams as being among the worst she’s seen.

"Whether these folks call themselves loan mod consultants or mortgage rescuers, these are truly con artists and they are nothing more than opportunistic predators," Madigan said.

Illinois Governor Keeps Military Personnel's Foreclosures to a Minimum

blog@www.castlelaw.net (News Author)15775 — Fri, 25 Jun 2010 08:00:00 EST

Pat Quinn, governor of Illinois, has signed legislature to aid members of the military with keeping their homes from foreclosure.

Quinn signed the measure on May 29 and it will go into effect in January 2011.

The measure received the support of members of the Illinois House and Senate.

The new law grants a 90-day delay in foreclosure proceedings for active-duty members of the military.

Those who are eligible to receive the extension will have to apply in writing.

According to Quinn, the law will ensure that members of the military are supported while they are away from their homes while on active duty.

NBA Star Antoine Walker Files for Bankruptcy

blog@www.castlelaw.net (News Author)15774 — Fri, 25 Jun 2010 08:00:00 EST

Former NBA star Antoine Walker has filed for personal bankruptcy, citing $1.27 million in casino debts, 20 foreclosures, and other property-related lawsuits.

The former forward for the Boston Celtics and Miami Heat filed for Chapter 7 protection at the U.S. Bankruptcy Court in Miami earlier in May, citing a debt of $12.7 million and assets of $4.3 million. Chapter 7 means that he plans to liquidate assets in order to repay creditors. A report from Yahoo Sports said that Walker earned more than $110 million during his 12 years in the NBA.

Walker filed for bankruptcy on May 18, not long after he was served with a $2.3 million foreclosure suit on a suburban Chicago mansion he purchased for his mother, according to a report from Crain’s Chicago Business. The house was one of four properties worth a combined $4 million that Walker listed on his bankruptcy filing. He faces foreclosure suits on those properties and on some of his business holdings.

Among the largest of Walker’s unsecured liabilities, he listed a gambling debt of $770,000 owed to Harrah’s Entertainment in Las Vegas and a $500,000 gambling debt owed to Ameristar Casino in East Chicago, Indiana.

Walker owes more $750,000 in restitution to the Las Vegas District Attorney after he was arrested for allegedly writing bad checks a year ago. However, charges were deferred when he agreed to a payment plan. He also owes $458,000 to sports agent Mark Bartelstein.

According to court papers, Walker said that he and his family spend an average of $78,000 per month. That amount includes $1,000 on clothing, $400 on pool maintenance, and $1,200 on housekeeping. He said that he currently has no income.

Among the items Walker may make available for creditors are a 2008 Range Rover, a $20,000 designer watch, and his 2006 NBA Championship ring, which he values at $6,000.

St. Louis Business Bankruptcy Rates Highest In 18 Years

blog@www.castlelaw.net (News Author)15638 — Thu, 24 Jun 2010 08:00:00 EST

The St. Louis Business Journal has more bad news for Missouri companies and those waiting for the economy to completely recover: the rate of St. Louis business bankruptcies over the past 12 months is higher than it has been since 1992.

There were 409 business bankruptcy filings in the past 12 months, ending at the end of March. That is up 20 percent from the period ending on March 31, 2009, when 341 businesses filed for bankruptcy protection. This year’s numbers are three times higher than in 2007, before the recession began, when only 133 companies in the St. Louis, Missouri, went to bankruptcy court to either liquidate or reorganize their assets and debts.

There is some good news: St. Louis’ rate of business bankruptcies is lower than national business bankruptcy numbers. Across the country, the rate of business bankruptcies rose 25 percent, from 49,091 bankruptcy filings last year to 61,148 bankruptcy filings in the last 12 months.

While the economy is recovering in many ways, businesses are still struggling as consumers slowly regain confidence and return to shops and stores. Financial experts expect these conditions to improve over the next year or two, though improvement will be a slow process.

These St. Louis bankruptcy numbers were compiled by Hoffman Clark, a Clayton, Missouri, accounting firm. They collected their data from the U.S. Bankruptcy Court for the Eastern District of Missouri, which includes St. Louis and the surrounding area.

Thomas Motors Of Moberly Wins Case After General Motors Bankruptcy

blog@www.castlelaw.net (News Author)15637 — Wed, 23 Jun 2010 08:00:00 EST

A Moberly, Missouri General Motors car dealer will stay open despite an earlier letter that asked the dealer to wind down sales in the wake of GM’s bankruptcy.

According to Kansas City Daily Business News, Thomas Motors of Moberly successfully petitioned an earlier order from GM to stop sales of their cars in an effort to cut back on car dealerships throughout the country. General Motors filed for bankruptcy in June of last year and part of their bankruptcy plan included scaling back on dealerships. However, many dealerships, including Thomas Motors in Missouri, asked for closer consideration.

The arbitration hearing included testimony from Moberly leaders regarding the importance of Thomas Motors to the local economy. Moberly City Manager Andy Morris, Randolph County Commissioner Wayne Wilcox, Moberly Area Economic Development President Corey Mehaffy and area businessman Chas Wheeler all spoke at the hearing. At the conclusion of the hearing, Arbitrator Bob Russell of Sedalia issued the decision to allow Thomas Motors to renew its franchise agreement.

The owner of the Missouri car dealership said that he was pleased with the outcome and that he looked forward to continuing to serve the area.

BBB Warms Missouri Residents About Debt Settlement Companies

blog@www.castlelaw.net (News Author)15636 — Tue, 22 Jun 2010 08:00:00 EST

After receiving over 3,500 complaints since the economic crisis began in 2007, the Better Business Bureau (BBB) suggests that Missouri and Illinois move forward with extreme caution when dealing with debt settlement companies. Present and CEO of the BB Michelle Corey advises consumers struggling with debt to be wary of debt settlement companies that ask for large upfront fees, that make promises that are too good to be true, or make claims to completely deplete your debt.

The St. Louis Globe-Democrat told the story of Hazelwood, Missouri, nurse that spent over $1,500 with The Consumer Law Group, a debt management company with a history of scamming their customers out of their last few dollars. The nurse said she made monthly payments to the company, who did little more than send cease and desist letters to her debtors. Legitimate debt settlement companies negotiate with creditors and help their customers create a plan to pay down their debt. However, many companies do no more than a consumer could do themselves – and many ask for high monthly payments.

With the recent recession, housing crisis, and economic crisis, more Americans than ever are struggling with debt, and few know how to solve the problem. Many debt settlement companies prey on these struggling debtors, who are often looking for an easy way out of their problems. Many of these debt settlement companies use aggressive marketing techniques and leave their customers with little information and less money.

Both Missouri and Illinois officials are working towards better regulating these debt settlement companies and raising consumer awareness.

Illinois Businessman Files For Personal Bankruptcy

blog@www.castlelaw.net (News Author)15635 — Mon, 21 Jun 2010 08:00:00 EST

Dan Gustafson, an Illinois businessman and a local politician, has filed for Chapter 7 liquidation bankruptcy just one year after his businesses failed in the poor conditions created by the economic recession.

Gustafson owned a freight company based in Illinois called Concert Group Logistics, but last July, the parent company took over control of the company after almost ten years. Now, Gustafson has an estimated $1.2 million in debts – all of which the man says is a result of his failed small business. Gustafson also says that the poor economy is to blame for his business failings and personal finance failings. He told reporters that before the recession hit in 2007, he was making $4 million a year, a number that dropped to under $1 million just a year later. He said that he couldn’t downside his business fast enough, landing both his company and him in debt. Finally, he suddenly lost a client that made up the majority of his remaining business.

The Illinois businessman’s biggest creditor is Concert Group Logistics, which he owes $266,000. Other debts include credit card balances and almost $100,000 in federal and state taxes. He has filed an exemption to keep his large house, one of his few remaining assets. He also says he is actively looking for work in addition to his job as a city councilman. He is looking forward to a new start after his bankruptcy.

Experts: Many Of Those In Need Not Taking Advantage Of Bankruptcy

blog@www.castlelaw.net (News Author)15634 — Sun, 20 Jun 2010 08:00:00 EST

The new bankruptcy laws that were enacted in 2005 made it harder and more expensive for families to file for personal bankruptcy – new rules that are now making it more difficult for families who are truly in need to file for bankruptcy and get a new start. Even with a near-record number of personal bankruptcy filings – almost 2 million people are expected to file in 2010 – many bankruptcy experts believe that many millions of families who would benefit from filing a bankruptcy petition are not doing so. This, in turn, could slow the country’s economic recovery.

A recent USA Today article reported that just a fraction of those who would benefit from bankruptcy are filing for bankruptcy – either because they can’t collect enough money to file or because they’ve heard that bankruptcy is not a fair way out. In reality, declaring bankruptcy could help speed the country’s overall financial recovery. Others believe that they could lose their home if they file for bankruptcy – something that is certainly not fact. What do experts think? The problems are not going resolve themselves anytime soon.

The bottom line is that the 2005 bankruptcy laws that were put in place to stop bankruptcy abuse are now stopping many honest Americans from making a fresh start. At the same time, consumers might be under the false impression that declaring bankruptcy is too expensive or too difficult for them to move forward with the process.

US Fidelis Coming to Agreement with Attorney General

blog@www.castlelaw.net (News Author)15471 — Fri, 11 Jun 2010 08:00:00 EST

The company that now operates bankruptcy auto warranty marketing firm U.S. Fidelis and the Missouri Attorney General’s office have reached an agreement to work towards an agreement on claims against the company.

Amherst Partners, in an agreement that the goal is to get the most return possible for U.S. Fidelis’ creditors, will provide access to the firm’s records and personnel. The two sides are forming a committee to provide the attorneys general of Missouri and other states with some oversight during the bankruptcy proceedings.

According to Missouri Attorney General Kris Koster, the deal provides protection for Missouri creditors from suits filed against the former owners of US Fidelis, brothers Darain and Cory Atkinson and their wives, by allowing them to see if corporate money wound up in the pockets of the Atkinsons.

The judge is providing the attorneys general and Amherst Partners with 90 days to show progress before ruling on a motion to appoint a new trustee.

Settlement Offered to Midway Games Owner Sumber Redstone

blog@www.castlelaw.net (News Author)15470 — Fri, 11 Jun 2010 08:00:00 EST

The creditors’ committee for video game company Midway Games Inc. has agreed to take $1 million in order to settle remaining claims against owner Sumner Redstone and companies he controls. The settlement is set for approval in bankruptcy court on June 23.

Midway, which once owned and developed such hit games as the “Mortal Kombat” series, recently confirmed its Chapter 11 liquidation plan. The settlement would generate more cash for distribution to creditors. Prior to the agreement, unsecured creditors of the parent company were informed that they could recover 16.5 percent, while unsecured creditors of subsidiaries are in line for 25 percent.

The creditors’ committee was largely unsuccessful in the suit against Redstone and his companies. They argued that Redstone carried out a “disastrous and ill-advised” $90 million transaction in February 2008 that saddled the company with a new debt of $70 million that it was unable to satisfy.

In late January, the bankruptcy judge dismissed the majority of the claims, but allowed the committee to continue prosecution of claims aimed at recharacterizing parts of the transaction as secured lending, rather than so-called true sales.

The judge said that if the committee were to have won on recharacterization, they could proceed with claims of preference and constructive fraudulence. Redstone is paying $1 million to resolve the recharacterization-related claims.

Midway sold assets in order to generate $43 million in cash, leaving no substantial secured claims unpaid. A unit of New York-based Time Warner Inc. purchased the majority of the assets in July for $33 million plus accounts receivable. The non-bankrupt European subsidiaries were sold in August for a nominal consideration.

Midway, a Chicago-based company, filed for Chapter 11 bankruptcy in February of last year, listing assets of $168 million and debt of $281 million. Including foreign subsidiaries not in bankruptcy, the asset and bankruptcy totals were $178 million and $337 million.

Texas Rangers Investor May Be Forced into Bankruptcy

blog@www.castlelaw.net (News Author)15469 — Fri, 11 Jun 2010 08:00:00 EST

A group of lenders to the Texas Rangers filed suit on May 28 in order to force the baseball team’s equity owners, controlled by private equity investor Thomas Hicks, into bankruptcy.

The petition for involuntary bankruptcy was filed in Forth Worth, Texas against Rangers Equity Holdings LP and Rangers Equity Holdings GP by four hedge funds and comes just days after the team placed itself into voluntary bankruptcy in order to ease a proposed $575 million sale to a group led by team president and Hall of Fame pitcher Nolan Ryan.

The Rangers’ equity owners, controlled by Hicks’ HSG Sports Group, were not part of the prepackaged bankruptcy the team filed on May 24. Hicks group lenders declared default on $525 million worth of loans in April of last year. HSG acquired the Rangers in 1998.

The May 28 court action could be an indication that some of the Rangers’ lenders are not satisfied with the proposed sale’s terms.

According to a spokesman for the lender group, the intention of the petitions is to “ensure that the bankruptcy proceedings meet the objective of maximizing value for all creditors. He said the lenders notified the court on May 25 that they might take such an action.

The petitioners claim they were owed a collective $144.4 million. Included in the group are hedge funds Kingsland Capital Management ($12.2 million), Monarch Master Funding LLC ($119.8 million), Sankaty Advisors LLC ($9.1 million), and Stonehill Offshore Partners LTD ($3.3 million). All say their claims are secured.

Major League Baseball, Ryan’s group, and Hicks have all said they support the sale. However, earlier in May the New York Times said that Monarch told baseball owners that lenders would not agree to a sale for a price “below fair market value.”

The Rangers are the second MLB team to seek a bankruptcy-court-approved sale within the past year. In October, Chicago Cubs owner Tribune Co., which had been in bankruptcy itself for nearly a year, filed for court protection for the team during an $845 million sale of the team to the family of TD Ameritrade Holding Corp founder Joseph Ricketts and his son, Tom Ricketts.

The "Soup Nazi" May Need to File Bankruptcy

blog@www.castlelaw.net (News Author)15468 — Fri, 11 Jun 2010 08:00:00 EST

Soup Kitchen International Inc., a business that grew out of the well-known “Soup Nazi” character from popular television sitcom “Seinfeld,” is facing an attempt to force it into bankruptcy.

On May 18, five creditors filed a petition for involuntary Chapter 7 bankruptcy against the Staten Island, New York-based company in Brooklyn bankruptcy court, seeking $398,654.71. The company was founded in 1984 and has also done business as the Original SoupMan. The Original SoupMan, which purchased some assets from Soup Kitchen International, is not involved in the Chapter 7 proceeding, according to Original SoupMan spokesman Ronn Torossian.

The Original SoupMan, which is based out of the same Staten Island address as Soup Kitchen International, currently has restaurants or retail locations in several states across the U.S. and one in Windsor, Ontario, Canada, according to its website.

According to Torossian, the Original SoupMan purchased some of the assets of Soup Kitchen International in December, in addition to secured debt of $3.5 million. He said that the Original SoupMan no longer owns the company and is expanding with a line of frozen soups and new stores.

A Manhattan store became world-famous due to founder Al Yeganeh’s rules commanding customers to order soup in the most efficient manner inspiring an episode of “Seinfeld.” That location, which has been closed since 2006, will soon be reopened, according to Torossian.

Debt Settlement Bill Passes In Illinois – Needs Governor Signature

blog@www.castlelaw.net (News Author)15268 — Mon, 31 May 2010 08:00:00 EST

House Bill 4781 has passed the Illinois General Assembly and is waiting to be signed by Illinois Governor Pat Quinn. The bill is meant to better regulate debt settlement companies – companies that often leave their customers deeper in debt and closer to bankruptcy.

Backed by dozens of consumer advocacy groups, the debt settlement consumer protection bill hopes to lessen deceptive business practices, large start-up fees, and false advertising in debt management and debt settlement companies. While many agree that debt settlement companies prey on desperate people who suffer from large amounts of credit card debt, medical debt, or debt after divorce, no state before Illinois has passed measures to curb the abuse debt settlement companies wrecks on unknowing debtors. Especially with the recent economic crisis and recession, millions of people are looking for solutions for their debt problems and often turn to debt settlement companies with poor track records malicious practices.

The AARP is one of many Illinois organizations backing the bill. According to a press release, seniors are often plagued by debt – and may be more susceptible to unfair debt management companies and debt settlement companies than younger debtors.

The debt settlement regulations bill would outlaw up-front and monthly fees to customers and allow only a $50 application fee. In addition, the law would make it illegal for debt settlement companies to recommend to customers to stop paying creditors and for companies to make cancellation complicated or impossible. Finally, the bill would require debt management companies to be licensed.

Illinois Court Approves RathGibson Bankruptcy Plan

blog@www.castlelaw.net (News Author)15267 — Mon, 31 May 2010 08:00:00 EST

Illinois’ Chicago Daily Herald reports that RathGibson Inc. has had their reorganization bankruptcy plan approved both by a judge and by their creditors as of May 21, 2010. In the approved Chapter 11 bankruptcy plan, the steel tube manufacturer will pay its creditors over $80 million in secured debt. At the same time, the company that is over $300 in debt will pay off 1.2 percent of its unsecured debts. The approved plan is based on a sale of the business for $93 million cash to a group including some of the existing secured lenders and holders of 70 percent of the $209.5 million in 11.25 percent unsecured notes.

None of RathGibson’s creditors approved their Illinois bankruptcy plan. The original plan was rejected earlier this year.

The Lincolnshire, Illionis, maker of steel tubes filed for Chapter 11 reorganization bankruptcy in August of 2009, with the manufacturing company listing as many as 5,000 creditors and an estimated $319 million in debts. The IL business bankruptcy was blamed on economic problems across the board which led to a lower demand of steel tubes. As orders dropped, the company found itself with cash flow problems and then mounting debt.

"The debtors have been continuously exploring their options for addressing their liquidity and capital structure issues with their lenders, noteholders and other constituents," said RathGibson CEO Jon Smith in court papers filed with the U.S. Bankruptcy Court.

Bankrupt Illinois Chemical Maker Tronox Struggles With Waste Cleanup

blog@www.castlelaw.net (News Author)15266 — Mon, 31 May 2010 08:00:00 EST

U.S. Bankruptcy Judge Allan Gropper has approved a settlement between a bankrupt Illinois chemical maker and the US government regarding the handling of a toxic waste cleanup.

Tronox Inc., an Illinois chemical manufacturer that is the world’s third largest maker of the whitening pigment titanium dioxide used for paint, paper, and plastics, recently declared chapter 11 reorganization bankruptcy while at the same time seeking money from the federal government for toxic waste cleanup that it funded during the last 30 years. The settlement reached this month is $25 million, which Tronox plans to set aside along with $115 million for environmental cleanup costs white the company goes through the bankruptcy process.

When the company filed for Chapter 11 bankruptcy in November, the company reported $1.6 billion in assets and $1.2 billion in liabilities. The bankruptcy largely concerned legacy debts from former company Kerr-McGee, which has been blamed for contaminating a number of West Chicago properties with radioactive waste in the 60s and 70s. Tronox has spent millions cleaning up the issue without the help of the government and cleanup is thought to continue into the future. During the bankruptcy process, the company plans to continue operations as usual.

“Before the health risks associated with radioactive materials were recognized, these mill tailings were available for use as free fill material by residents and contractors in the West Chicago area. Accordingly, the soil at many properties in the West Chicago area became contaminated with radioactive materials,” lawyers for Tronox wrote.

The company made $1.43 billion in sales in 2007.

Personal Bankruptcies Down In April Nationally

blog@www.castlelaw.net (News Author)15265 — Mon, 31 May 2010 08:00:00 EST

When it comes to the rate of personal bankruptcies in the United States, do you want the good news or the bad news first?

According to the National Bankruptcy Research Center’s April 2010 Bankruptcy Filings Report, the rate of personal bankruptcy filings in America went down one percent in April 2010 in comparison with the rate of bankruptcy filings in March 2010. However, the rate of bankruptcy filings for April was up 17 percent in comparison to April 2009 filing numbers.

While bankruptcy rates are slowly decreasing, bankruptcy experts don’t expect the numbers to return to “normal” rates any times soon. Why? Until jobless rates decrease and until the housing market stabilizes, families across America will still be struggling with unemployment, upside-down mortgages, and resetting mortgage rates. Especially in areas where the value of housing has decreased significantly, bankruptcy professions are predicting that rates of bankruptcy will continue to be high for many months or even years to come.

It is also worth noting that personal Chapter 7 liquidation bankruptcy is on the rise while personal Chapter 13 reorganization bankruptcies are less popular. In April, three out of four bankruptcies were Chapter 7 while only 25 percent were Chapter 13.

The last time national bankruptcy rates were as high as they are today was in 2005, when the bankruptcy rate surged just before new bankruptcy laws made it more difficult for families to file for Chapter 13 and Chapter 7 bankruptcy.

Injured Illinois Farms Struggles Against Bankruptcy

blog@www.castlelaw.net (News Author)15263 — Mon, 31 May 2010 08:00:00 EST

Did you know that the majority of Illinois personal bankruptcies are caused by a single adverse event, such as an injury, a job loss, a divorce, or an illness? While many people want to believe that most bankruptcies are caused simply by financial irresponsibility, the truth is that most bankruptcies happen to regular families who are suddenly faced with an emergency. Unfortunately, even though with health insurance can be stuck with expensive medical bills when their insurance company refuses to pay their claim.

This was exactly the case for Illinois farmer 37-year-old Jason Haas, who fell from a grain bin and incurred $87,000 in medical bills, not to mention lost wages. When his insurance company refused to pay for his worker injury costs, Haas’ was forced to consider bankruptcy even though he had insurance, according to the Chicago Tribune.

In October, Haas fell 15 feet from a grain bin ladder, compressing his vertebrae and breaking his left leg. Why won’t his insurance company pay his bills? They say he was working a for-profit job when he was injured and should be covered by workers’ compensation – but farmers aren’t covered by workers’ compensation in Illinois.

While Haas has continued a fight for his insurance claim, his bills continued to pile up. Soon, he was receiving calls from creditors and struggling to keep up with the most basic payments. His next options are tough ones: sell his farming equipment, sell his farm, or declare Illinois bankruptcy.

Washington Mutual Files Latest Reorganization Plan

blog@www.castlelaw.net (News Author)15203 — Thu, 27 May 2010 08:00:00 EST

Nearly a day late and billions of dollars short, on May 21, Washington Mutual Inc. filed its latest reorganization plan with the U.S. Bankruptcy Court for the District of Delaware.

The filing, which was reported four minutes prior to midnight, covers terms of a revised global settlement representing the third and final version of a deal settling fights over the collapse of its thrift subsidiary, Washington Mutual Bank, aka WaMu.

On the day of the filing, Washington Mutual gave the U.S. Bankruptcy Court in Wilmington, Delaware a promise of filing a final settlement and the final version of a Chapter 11 exit plan.

According to Washington Mutual, it is billions of dollars shy of what is necessary to cover all of its debts and take care of shareholders.

The proposed WaMu settlement will form the basis of a Chapter 11 plan establishing how former parent Washington Mutual plans to distribute the approximate $7 billion it expects to amass in Chapter 11.

In a bankruptcy court hearing that occurred on May 19, the expected pact would be among WaMu’s former owner, Washington Mutual, its new owner, J.P. Morgan Chase & Co., and the Federal Deposite Insurance Corp. (FDIC).

In September 2008, the FDIC brokered the $1.9 billion sale of WaMu to J.P. Morgan as the housing market collapse was draining value from its portfolio of risky home loans.

The settlement will grant Washington Mutual $4 billion in cash that was in its bank accounts at the thrift when it was taken over.

One in Seven Households Ends Up Behind or in Foreclosure

blog@www.castlelaw.net (News Author)15202 — Thu, 27 May 2010 08:00:00 EST

According to a statement from the Mortgage Bankers Association, one out of every seven households in the U.S. with a mortgage ended the first quarter of 2010 either behind on payments or in foreclosure. However, the association says that a peak in unemployment could mean that repayment stress is easing.

The national rate of foreclosure has slowed, but the stockpile of loans that are seriously delinquent or in foreclosure indicates a long recovery path for the U.S. housing market.

MBA chief economist Jay Brinkman said the situation is “like shutting off the oil leak, but you still have a lot of oil in the Gulf to deal with.”

Loans that are past due by 90 days or more or are in foreclosure are at a historical high of 68 percent of all mortgages. The high rate of unemployment is overwhelming efforts by lenders to alter loan terms to borrowers.

Mark Zandi, chief economist for West Chester, Pennsylvania-based Moody’s Analytics, said that looming foreclosures and short-sales indicate that there will continue to be a decline in housing prices in which “we’ll see a bottoming of the price decline very late this year into early next year.”

According to the MBA’s National Delinquency Survey, the combination of loans in foreclosure and loans that are at least one payment past due saw a decrease to 14.01 on a non-seasonally adjusted basis from a record 15.02 percent in the fourth quarter.

The MBA reported that new claims for unemployment insurance in the first quarter were higher than expected, stymieing improvement in the 30-day delinquency rate. Brinkmann said that the rate has stabilized, but “a bad situation that is not getting worse is still bad.”

Kansas City Foreclosures Down for the Month, Up for the Year

blog@www.castlelaw.net (News Author)15201 — Thu, 27 May 2010 08:00:00 EST

The home foreclosure rate in the 15-county Kansas City area saw a decline in April after seeing a dramatic surge in March, according to a new report from RealtyTrac Inc. However, the number was a substantial increase from April 2009.

A (Thursday before article) report from RealtyTrac said foreclosure actions, including default notices, scheduled auctions, and bank repossessions, were taken against 2,021 homes in April. That number is a 44.5 percent decrease from the 3,643 foreclosure actions in March, but an increase of 61.5 percent from the 1,251 actions in April of last year.

The total number for April means that one out of every 429 households in the Kansas City area received a foreclosure filing, in comparison to one out of 238 households in March.

The largest number of foreclosure filings, 1,101, or one out of every 289 households, took place in Jackson County. The next most took place in Johnson County, with 430 filings, or one out of every 505 homes. Wyandotte County was third, with 179 filings, or one out of every 379 homes.

The entire state of Missouri ranked 29th in foreclosure rate, with 3,635 filings in April, or one out of every 733 homes. That number was an increase of six percent from March and an increase of 34.7 from April of last year.

RealtyTrac reported that 333,837 filings, or one out of every 387 homes, occurred nation-wide. That total was a decrease of nine percent from March and a decrease of 2.4 percent from April 2009.

The top three foreclosure rates were in Nevada, Arizona, and Florida. Nevada had the highest rate for the 40th month in a row, with one out of every 69 housing units receiving a foreclosure filing for April, which is more than five times the national average.

While fourth in foreclosure rate for the nation, California had the largest number of foreclosure filings in the U.S., reporting 69,725 filings in April.

Two Jamestown LLCs in Need of Chapter 11 Protection

blog@www.castlelaw.net (News Author)15200 — Thu, 27 May 2010 08:00:00 EST

Jamestown LLC filed for Chapter 11 bankruptcy protection one day before the Rogersville development by the same name was headed into a trustee’s sale for default on a $5.05 million loan.

The bankruptcy filing took place in the U.S. Bankruptcy Court of the Western District of Missouri on May 17 and allowed developer American Equities of Missouri Inc. to avoid a foreclosure sale of two tracts at the 200-acre mixed-use property east of Springfield at U.S. Highway 60 and Business Route 60 that was to occur on May 18.

Chapter 11 bankruptcy protection allows for a corporation or partnership, such as Jamestown LLC, to reorganize, according to www.uscourts.gov. A debtor seeking Chapter 11 bankruptcy protection typically proposes a reorganization plan to keep its business alive and pay creditors over time.

According to an April 30 legal notice, Cincinnati, Ohio-based Fifth Third Bank called its $5 million loan on Jamestown

Northwest Missouri Biofuels to Be Auctioned Off

blog@www.castlelaw.net (News Author)15072 — Fri, 21 May 2010 08:00:00 EST

A federal bankruptcy has issued an order for a northwestern Missouri-based biofuels company to be sold at auction.

According to the decision by the U.S. Bankruptcy Court for the Western District of Missouri, Northwest Missouri Biofuels must be auctioned off. According to a report from the St. Joseph News-Press, the company was forced into bankruptcy in 2009.

The company opened its biodiesel plant in 2007. In 2008, Northwest Missouri Biofuels completed an expansion in 2008 that allowed it to produce 15 million gallons of biodiesel each year.

The plant is capable of producing biodiesel through the use of several kinds of feedstocks, including animal fat.

The auction of the company has been set for June 16 and will take place in Kansas City.

Movie Gallery to Close Remaining Stores

blog@www.castlelaw.net (News Author)15071 — Fri, 21 May 2010 08:00:00 EST

Movie Gallery Inc. has decided to close its remaining stores and liquidate as consumers are increasingly renting films through the mail, vending machines, and high-speed Internet connections.

The company, which is the No. 2 rental chain behind Blockbuster Inc., filed a notice with the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond that it plans to terminate its business operations after it defaulted on a loan from one of its creditors.

In an agreement filed with the court, the company said the decision to shut down the more than 1,900 remaining stores across the U.S. is in the company and its creditors’ “best interests.” The agreement doesn’t provide a time line and still requires a bankruptcy judge’s approval.

The Wilsonville, Oregon-based company filed for Chapter 11 in February, citing increasing competitive pressure from movies-by-mail service Netflix Inc., DVD kiosk company Redbox, and delivery of movies and TV shows over the Internet.

The filing does not include the company’s operations in Canada.

The filing was the company’s second time filing for bankruptcy within the past three years.

In October 2007, the company filed for bankruptcy because it could not sustain the debt it took on after acquiring rival Hollywood Entertainment Corp. in 2005 for $850 million. Movie Gallery agreed to assume approximately $350 million of Hollywood’s debt under the deal.

The purchase resulted in Movie Gallery becoming the second-largest rental chain in the U.S., but within the past three years, the company has been forced to close more than 2,400 stores, according to court filings. It had since announced that it planned to close more stores under a restructuring plan.

The company said that it continued seeing “significant” losses in 2009, despite the move to close unprofitable locations. Movie Gallery’s annual revenue decreased a total of $546.3 million, or 28 percent, to $1.4 billion.

In its filing, the company listed debt between $500 million and $1 billion and assets between $10 million and $50 million.

Examiner to Review Buyout of Tribune Co in Chapter 11 Case

blog@www.castlelaw.net (News Author)15070 — Fri, 21 May 2010 08:00:00 EST

On May 10, the judge in the Chapter 11 bankruptcy case of Tribune Co. appointed an independent examiner to conduct a review of the 2007 leveraged buyout of the media conglomerate and the potential claims arising from it that could be brought on behalf of the bankruptcy estate.

The U.S. trustee’s selection of California bankruptcy attorney and UCLA law professor Kenneth Klee received the approval of Judge Kevin Carey. He will review what is possibly the core issue in the bankruptcy case.

In spite of the appointment’s approval, attorneys in the case continue to dispute over whether and how information give to Klee by parties in the case should be considered confidential or privileged.

Carey granted Klee the authority to meet with anyone he desires without inviting other parties and to share privileged information with outside parties, if necessary.

The buyout, which was engineered by real estate mogul Sam Zell and left Tribune Co. with a massive debt load, is to be Klee’s primary focus.

On December 2008, Tribune, which owns the Los Angeles Times, Chicago Tribune, The (Baltimore) Sun, and other daily newspapers along with 23 TV stations and formerly the Chicago Cubs, filed for bankruptcy due to dwindling advertising revenue and a debt load of $13 billion, a majority of which stems from the buyout.

A group of bondholders represented by Wilmington Trust Co. filed suit in March against JPMorgan Chase and other banks financing the buyout, alleging that the ensuing debt load would leave Tribune insolvent. The bondholders claim the deal was fraudulent due to loading up the company with too much new debt that was used to cash out Tribune stockholders.

Watch Out for Forensic Mortgage Loan Artists

blog@www.castlelaw.net (News Author)14747 — Fri, 14 May 2010 08:00:00 EST

If you are faced with default on your mortgage or foreclosure on your home, be wary of the latest scam: fake “forensic mortgage loan artists.”

In this scam, the con artists claim that if you pay an upfront fee, their audits can help you hang on to your home. Don’t fall for it.

The Federal Trade Commission recently released a new consumer alert entitled Forensic Mortgage Loan Audit Scams: A New Twist on Foreclosure Rescue Fraud, in which it provides consumers with information and legitimate resources to help save their homes.

The alert can be found at: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt177.shtm.

West Virginia Man Sues for Wrongful Foreclosure

blog@www.castlelaw.net (News Author)14746 — Fri, 14 May 2010 08:00:00 EST

A man from Cross Lanes, West Virginia has filed suit against Countrywide Home Loans, Bac Home Loans Servicing, and Federal National Mortgage Association, alleging that the companies participated in predatory lending and loan servicer abuse that caused his home to be wrongfully foreclosed upon.

According to the suit Bradford Corder filed in West Virginia’s Kanawha County Circuit Court on April 13, he purchased a home in September of 2002 for $185,000.

Following a divorce, Corder submitted loan modification information to the defendants in January of this year and on March 11, he was informed that the modification had been approved, according to the complaint.

Corder says that on March 16, the defendants informed him that foreclosure on his home had been postponed until they received the loan modification package. However, Corder says that the defendants proceeded with the foreclosure on March 17 anyway.

Corder claims economic loss, property loss, and considerable stress, worry, and fear in the suit. He seeks actual damages and appropriate civil penalties.

U.S. Concrete Files for Chapter 11Bankruptcy

blog@www.castlelaw.net (News Author)14745 — Fri, 14 May 2010 08:00:00 EST

On April 29, U.S. Concrete Inc. filed for Chapter 11 bankruptcy protection as part of a pre-arranged restructuring deal with bondholders to decrease its debt by $272 million.

U.S. Concrete shares decreased more than 42 percent in morning trade on the day of the filing, but later pared some losses and were down 35 percent at 55 cents in afternoon trading on Nasdaq.

The proposed restructuring would convert the company's 8.325 percent senior subordinated notes due in 2014 into equity in the reorganized company.

Existing shareholders are to receive warrants to purchase 15 percent of the reorganized company's stock.

According to the company, its joint operations in Michigan are not a part of the bankruptcy filing.

U.S. Concrete also sought to receive the approval of the bankruptcy court for an $80 million debtor-in-possession (DIP) financing led by JPMorgan to continue operating under bankruptcy protection.

The company, which listed 43 affiliates in its filing, said it expects for the bankruptcy process to conclude within a period of 90 days.

The Houston, Texas-based company listed assets of $389.2 million and debt of $399.4 million in court papers.

Large Percentage Increase for Mid-West Foreclosures

blog@www.castlelaw.net (News Author)14744 — Fri, 14 May 2010 08:00:00 EST

The 9,080 home foreclosures in Missouri during the first quarter of 2010 represent an increase of 9.5 percent from the fourth quarter of 2009 and a 24.5 increase from the first quarter of 2009, according to a report from RealtyTrac, an Irvine, California-based online marketplace for foreclosure properties.

Across the U.S., home foreclosures saw a 7.2. percent increase during the first quarter, which is a 16 percent increase from the first quarter of 2009. Missouri ranks 30th in the U.S. for foreclosure rates.

New foreclosure numbers on homes in Springfield also saw a spike from the previous month, according to the report. In March, there were 178 new foreclosures in Springfield, a 62 percent increase from 110 in February. There are 873 homes in foreclosure in Springfield.

RealtyTrac CEO James J. Saccacio said that foreclosure activity in the first quarter of 2010 followed a similar trend to the first quarter of 2009. There was a shallow trough in January and February and a significant increase in March in both 2009 and 2010, he said.

A difference in the numbers for 2010 is that the increase took place more in the final stage of foreclosure. The number of real-estate owned properties increase nine percent year-over-year in the first quarter of 2010, in comparison to a 13 percent quarterly decrease in REOs during the first quarter of 2009.

Saccacio said that the subtle shift in numbers means the highest quarterly total of REOs ever seen in a RealtyTrac report and could be further evidence of lenders beginning to make a dent in the backlog of distressed inventory, which built up over the past year due to foreclosure prevention programs and processing delays slowing the normal foreclosure timeline.

Shares for Palm Go Up after Hewlett Packard Announces Purchase

blog@www.castlelaw.net (News Author)14568 — Thu, 06 May 2010 08:00:00 EST

Shares of struggling Sunnyvale, California-based smartphone manufacturer Palm increased more than 20 percent in trading on April 29 after the news broke that Hewlett Packard would purchase the company in a deal valued at $1.2 billion dollars.

Reportedly, HP plans to use Palm's proprietary platform in its forthcoming tablet computer, the HP Slate.

Over the past year and a half, shares of Palm have been a roller coaster ride. In early 2009, they nearly bottomed out at $3 per share, rose to $18 per share by October, and fell to below $5 per share in recent months.

Meanwhile, the acquisition of Palm by HP poses a minor victory for the single largest investor in Palm, Menlo Park, California-based Elevation Partners.

According to the estimates of analysts, Elevation has invested nearly $460 million in Palm since 2007. Because of the acquisition by HP, the firm stands to walk away with nearly $25 million in profits.

Elevation was recently named the worst-performing venture capital firm in Silicon Valley after it lost hundreds of millions of dollars on a series of bad tech investments.

Bankruptcy Filings Increase 32% for 2009

blog@www.castlelaw.net (News Author)14567 — Thu, 06 May 2010 08:00:00 EST

The upswing in bankruptcy filings shows no evidence of slowing down as filings saw a 32 percent increase in 2009.

Last year, bankruptcy filings across the U.S. rose to more than 1.47 million, an increase from 1.17 million in 2008, according to the Administrative Office of the U.S. Courts.

Recently, the pace accelerated, as bankruptcy filings across the U.S. rose to the highest monthly total since bankruptcy laws were overhauled by Congress in 2005. Alexandria, Virginia-based American Bankruptcy Institute said that in March, the 149,268 filings were an increase of 23 percent from the total in March 2009.

In February, consumer bankruptcy filings increased 14 percent from February 2009, suggesting that the recession may technically be over, but the financial effects remain.

Attorney Generals Encourage Separate Trustee for US Fidelis Bankruptcy

blog@www.castlelaw.net (News Author)14566 — Thu, 06 May 2010 08:00:00 EST

Attorneys general from 11 states have joined a Missouri-led effort urging a bankruptcy judge to appoint an independent trustee to run US Fidelis, the Wentzville, Missouri-based company that was once the largest seller of extended auto service contracts in the U.S.

In March, Missouri Attorney General Chris Koster requested that U.S. Bankruptcy Judge Charles E. Rendlen III appoint the trustee. Koster claims the company’s owners, brothers Darain and Cory Atkinson, plundered the company through illegal transfers of the firm’s assets in order to put them out of reach of creditors, including several hundred consumers.

Turnaround consultant Scott Eisenberg of Birmingham, Michigan-based Amherst Partners now runs US Fidelis.

Eisenberg has stated on multiple occasions that he has had no direct contact with the Atkinson brothers since he took over the company in March. Under the leadership of Eisenberg, the company has threatened to file suit against the brothers in order to recover nearly $65 million he believes they and companies they control owe US Fidelis.

On April 14, Washington state Assistant Attorney General Mary Lobdell backed Koster’s accusations in court filings. She led a multistate investigation of US Fidelis that examined widespread allegations of consumer fraud and telemarketing violations.

A filing from Lobdell noted that the Atkinson brothers have not resigned from their executive positions, meaning they could still interfere with the running of the company. Darain Atkinson was the president and Cory Atkinson was the vice president.

Other attorneys general joining the call for a trustee to be appointed are from Ohio, Iowa, North Dakota, Arkansas, Oregon, Maryland, Wisconsin, North Carolina, West Virginia, and Tennessee.

A hearing has been scheduled for May 26.

More MO and KS Homeowners Facing Foreclosure

blog@www.castlelaw.net (News Author)14565 — Thu, 06 May 2010 08:00:00 EST

According to a new report from RealtyTrac Inc., the number of homeowners facing foreclosure action in Kansas and Missouri increased during the first three months of 2010.

The report said that within the first quarter, foreclosure actions saw an increase of nearly 61 percent in Kansas in comparison to the same period of 2009. Nearly 4,000 properties were affected.

RealtyTrac noted that the actual increase in Kansas may not be as high due to data collection changes or improvements.

The foreclosure rate for the first three months in Missouri saw an increase of 25 percent from the first quarter of last year. The number of properties involved in some form of foreclosure action rose above 9,000 for the quarter.

Across the U.S., the number of homes taken over by banks saw an increase of 35 percent from the first quarter of 2009 to the first quarter of 2010. Additionally, households facing foreclosure saw a 16 percent increase in the same period.

In March alone, foreclosure actions in Kansas saw an increase of 22.5 percent from March of last year and 24.5 percent from February.

In Missouri, foreclosure actions saw a 26 percent increase from March 2009 to March 2010 and a 14 percent increase from February 2010.

Both states had a large number of properties in the final stages of foreclosure.

RealtyTrac said that the trend could be further evidence of lenders beginning to make a dent in the backlog of distressed industry.

Detroit Pistons Star Rick Mahorn Files for Chapter 7

blog@www.castlelaw.net (News Author)14459 — Fri, 30 Apr 2010 08:00:00 EST

Former Detroit Pistons star Rick Mahorn and his wife have filed for Chapter 7 bankruptcy, citing failed investments, decreased value of a home they purchased, and efforts to repay an IRS debt.

The case, which was filed on December 8, is pending in U.S. Bankruptcy Court in Detroit.

Mahorn, 51, was a member of the 1989 NBA-champion Pistons, in a time referred to as the “Bad Boys” era. He was the coach of the WNBA’s Detroit Shock prior to the team’s relocation to Tulsa, Oklahoma. He now works as a radio announcer for the Pistons.

In an April 22 story in The Detroit News, Mahorn said that he is looking for more work.

According to public records, the IRS has filed liens for nearly $214,000 in delinquent taxes against Mahorn since 2006. His attorney says the tax debt has been repaid.

Chemical Company Lyondell Gets Through Bankruptcy

blog@www.castlelaw.net (News Author)14458 — Fri, 30 Apr 2010 08:00:00 EST

On April 23, a plan for Lyondell Chemical Co. to emerge from bankruptcy received the approval of Manhattan Federal bankruptcy court Judge Robert Gerber, signaling the near-end of a 15-month process during which the chemical manufacturer fought off a takeover and settled hundreds of environmental claims and a creditor lawsuit.

Under the approved plan, Apollo Management, Ares Management, and Access Industries will provide financing.

Lyondell filed for bankruptcy protection in January of last year, citing a debt of around $24 million.

When Lyondell asked Gerber if he would approve the plan in front of a packed courtroom, he responded that he would before quipping that he felt a bit like he was taking part in a marriage.

Lyondell presented its plan in March, around the same time it rejected a takeover bid from India-based Reliance Industries Ltd, which valued the company at $14.5 billion. Lyondell said the takeover bid was not high enough.

According to court documents, the company’s investment bankers value it at between $14.2 billion and $16.2 billion.

Under Lyondell’s stand-alone plan, the details of which were released in March, the company plans upon emerging from bankruptcy as Netherlands-based LyondellBasell, with debt of $7.2 billion and $2 billion in cash.

The company will also shed most environmental liabilities, many of which were settled in a $250 million agreement with the U.S. government and state governments. Gerber also approved that settlement on April 23.

After emerging from bankruptcy, which Lyondell plans on doing by April 30, partial ownership of the company will go to private equity firms Apollo and Ares and Access, an industrial holding company owned by investor Len Blavatnik, who will together back a $2.8 billion rights offering.

Las Vegas Monorail Seeks Extension on Bankruptcy Plan

blog@www.castlelaw.net (News Author)14457 — Fri, 30 Apr 2010 08:00:00 EST

The Las Vegas Monorail is seeking three more months from a federal bankruptcy judge to file a bankruptcy reorganization plan.

The nonprofit monorail wishes to file its reorganization plan under Chapter 11 bankruptcy by August 17.

The current deadline fore the plan to be filed is May 19, the same day U.S. Bankruptcy Judge Bruce Markell in Las Vegas is due to consider a request for a deadline for the plan’s approval to be set on October 18.

The monorail filed for bankruptcy protection in January, citing debts between $500 million and $1 billion. However, monorail officials say the system earns enough to continue operations on a 3.9-mile route linking several hotels and the Las Vegas Convention Center.

The system began service in 2004 after floating $650 million in construction bonds.

In court filings, Monorail President and CEO Curtis Myles said that the system has attempted to stabilize its business since filing for bankruptcy, adding that it is cooperating with creditors.

Motions from Wells Fargo and an insurance company arguing that the system should file for a different type of bankruptcy due to it acting more like a municipality than a normal business have not yet been ruled on. The Wisconsin-based insurance company, Ambac Assurance Corp., insured tax-exempt bonds issued by the state of Nevada for the transport system’s construction.

According to Myles, the motions “imposed significant burden” on the monorail, including depositions of five monorail employees and producing documents for opposing lawyers. He says that this has caused the monorail to not have sufficient time to produce a reorganization plan.

US Fidelis Gets Closer to Bankruptcy Plan

blog@www.castlelaw.net (News Author)14456 — Fri, 30 Apr 2010 08:00:00 EST

US Fidelis’ attorney, Rob Eggman, says that he hopes to have at least a preliminary agreement on a bankruptcy plan by late May.

According to Eggman, he is discussing a plan to liquidate the company with the creditor’s committee and financing committee. He said that he has just begun to work on a draft plan and hope to have it in the hands of creditors to receive approval by May 26, which is the next court date, at the latest.

Eggman says that admittedly, it will be difficult to have a deal completed by then due to the number of consumers holding contracts. He said that the inclusion of multiple states’ attorneys general should not be an issue, since they all have the same goal as Missouri’s attorney general.

On May 26, Judge Charles Rendlen is scheduled to hear several motions, including a request from the company to be allowed to sell the names of 50,000 individuals who inquired about service contracts or purchased one in the past. The company estimates the lists to be valued at more than $20,000.

In the meantime, Rendlan has approved the $1.4 million sale of one of the homes of US Fidelis co-owner Darain Atkinson, which Rendlen referred to as the small one near the “compound” at Lake St. Louis. That money will be held in escrow, pending the outcome of the case.

The company ceased the sale of car service contracts in 2009 amid mounting complaints, lawsuits, and investigations. A call center remains in operation to service existing customers.

On April 22, Rendlen approved an extension of interim financing for the firm through the end of May.

TIME: Chapter 7 Personal Bankruptcies Continue To Rise In Midwest

blog@www.castlelaw.net (News Author)14443 — Fri, 30 Apr 2010 08:00:00 EST

TIME Magazine has published an in-depth story on the rising number of personal bankruptcies across the country and in the Midwest.

While the economy has begun to recover from the recent national economic crisis, bankruptcy experts are still seeing an upward trend of personal bankruptcies, including Chapter 7 bankruptcies and Chapter 13 bankruptcies. In addition, the number of business bankruptcies continues to rise in most states. Midwestern states like Illinois and Missouri are seeing especially large increases – not as large as states suffering from the worst foreclosure rates, but much larger than parts of the Northwest, South, and Northeast.

The continuing increase in bankruptcies – at a time when some believed we would start to see numbers leveling off – has much to do with the availability of credit in modern times, according to law professor Robert Lawless, an expert on bankruptcy at the University of Illinois. Other bankruptcy experts add that many families will struggle with their debt for two years before finally realizing that bankruptcy is the best route for them.

It is also important to note that Chapter 7 bankruptcies, or liquidation bankruptcies, are rising faster than Chapter 13 reorganization bankruptcies. While Chapter 13 bankruptcies used to make up for 35% of all bankruptcies, they now only make up for 25% of bankruptcies. What does this trend suggest? That more people are deciding to walk away from their underwater mortgages or give up their homes in order to find a fresh start. According to bankruptcy judges across the country, families struggling with mortgage problems and foreclosure are finally opting for bankruptcy as a way to escape their financial problems.

St. Louis Business Bankruptcies On The Rise – But Increase Is Slowing

blog@www.castlelaw.net (News Author)14442 — Thu, 29 Apr 2010 08:00:00 EST

As housing woes lessen, new construction begins, and the stock market begins to improve, many are harboring hope that the worst may be over when it comes to the recent national economic crisis. However, while many indicators point to improvements in the economy and an end of the recession, other signs tell a different story: a story of slower recovery and continued struggles.

The new statistics regarding business bankruptcies in St. Louis is an example of the latter. While the numbers are still shocking, and while the rate of bankruptcies has grown in comparison to last year, the number of business bankruptcies is lower than it has been recently.

According to the St. Louis Business Journal, the rate of Missouri business bankruptcies in the St. Louis area increase four percent in the first quarter of 2010 in comparison with the rate of St. Louis bankruptcies recorded in the first quarter of 2009. The numbers were released in a report written by Hoffman Clark, a Clayton, Mo., accounting firm, who said that there were 85 business bankruptcies in January, February, and March of this year in St. Louis.

While it may appear that bankruptcies are still on the rise, and while the numbers are still very inflated from bankruptcy statistics of a few years ago, the news is generally good. In fact, St. Louis business bankruptcies were down 22 percent from last quarter – the fourth quarter of 2009 – when 109 St. Louis businesses either decided to liquidate or reorganize with government help.

Judge: Tribune Co. Has Exclusive Right To Pursue Bankruptcy Plan

blog@www.castlelaw.net (News Author)14441 — Thu, 29 Apr 2010 08:00:00 EST

Bankruptcy proceedings regarding the Chapter 11 bankruptcy of Tribune Co. continues this week, as everyone struggles to find compromise and draw up a settlement plan that works for all parties involved. The large media company, which has its headquarters in Chicago, Illinois, declared bankruptcy in December of 2008 as a number of newspaper businesses struggled against the decline of print journalism and a lack of willing advertisers. At the same time, a economic recession hit the company, shrinking profits, creating cash flow problems, and ultimately leading to bankruptcy protection.

This week the judge in the Chapter 11 Chicago bankruptcy reorganization case, Judge Kevin Carey, made the decision not to consider an alternate reorganization plan offered by the Tribune’s creditors. However, to keep the disgruntled creditors happy, the judge also committed to letting an independent examiner investigate the possibility that the 2007 leveraged buyout of Tribune Co. was improper. Creditors, who include hedge fund Oaktree Capital Management, Goldman Sachs Loan Partners and Marathon Asset Management, claim that they are owed an estimated $3.6 billion.

"The judge just wants to make sure nobody has a possible basis to object to a plan at confirmation," said the lead attorney for the committee of unsecured creditors in the case.

Tribune Co. is an employee-owned media company based out of Chicago, Illinois, that is the second-largest publisher of newspapers in the country.

Burr Oaks Cemetery Auctioned As Part Of Bankruptcy

blog@www.castlelaw.net (News Author)14440 — Thu, 29 Apr 2010 08:00:00 EST

After months of financial problems, an unthinkable scandal, and dozens of lawsuits, Burr Oak Cemetery in Chicago will be auctioned off to a new – and hopefully more responsible and moral – owner.

The cemetery was the center of an unbelievable scam last year in which old bodies in the Illinois cemetery were dug up to make room for new bodies. After the scandal was exposed, by Cook County Sheriff Tom Dart, and after an estimated 300 bodies were removed from their final resting places, the Cemetery operator Perpetua-Burr Oak Holdings of Illinois LLC was forced to declare bankruptcy and liquidate its holdings.

Now the bankruptcy judge presiding over the case, U.S. Bankruptcy Judge Pamela Hollis, is overseeing the auction of both Burr Oaks Cemetery and sister cemetery Cedar Park Cemetery in Calumet Park. Although a pulblic auction is being held, there is already an offer on the properties, from Cemecare, a partnership between Gatling Community Development Inc. and Restvale Cemetery in Alsip, for $25,000 for Burr Oak in Alsip and $650,000 for Cedar Park. While the Illinois bankruptcy judge approves of this offer, she would like to confirm that no one else is willing to offer more for the wrought cemeteries.

The judge made clear that anyone buying the properties would not be involved in the estimated 50 civil suits facing Burr Oaks filed by the families of those affected by double burials and the destruction of some remains.

Chicago Frozen Yogurt Company Berry Chill Declares Bankruptcy

blog@www.castlelaw.net (News Author)14350 — Tue, 27 Apr 2010 08:00:00 EST

The frozen yogurt trend that has been sweeping metropolitan centers across the country might be cooling off – the latest victim of the winding down trend may be Berry Chill, a Chicago fro-yo company, has filed for Chapter 11 reorganization bankruptcy in tough times.

As the sweet treat enjoyed a recent bump in popularity, at least four frozen yogurt chains sprung up in the Chicago area in 2008. Now, however, many are struggling financially. The frozen desert company’s founder and CEO Michael Farah says that they need to get out a few bad leases and reorganize their efforts before clearing up their financial issues and meeting with success.

Berry Chill has a flagship location at 635 N. State St. In addition, its locations include 132 N. LaSalle St., and Ogilvie Station at 500 W. Madison. Farah says that too many of its locations don’t make sense for a business trying to attract evening and weekend business. He is actively looking for new investors.

The U.S. Bankruptcy Court in the Northern District of Illinois says that Berry Chill has between 50 and 99 creditors and that the frozen yogurt business reported $1 million to $10 million in assets and $1 million to $10 million in liabilities. The company owes creditors for start-up costs, taxes, legal services, rent, and operating expenses. The company made $3 million in 2009 and hoped to expand the business to four other cities and make $6 million in 2010.

Overland Park Man Pleads Guilty in Bank Fraud Scheme

blog@www.castlelaw.net (News Author)13992 — Fri, 09 Apr 2010 08:00:00 EST

U.S. Attorney for the Western District of Missouri Beth Phillips announced that a man from Overland Park, Kansas has pleaded guilty in federal court to actions taken as part of a bank fraud scheme which caused several low-income homeowners into bankruptcy after the scheme saddled them with more debt than they were able to repay.

On March 18, 62-year-old Harris Poulikidis pleaded guilty to causing an individual to travel across state lines as part of a fraud scheme before U.S. District Judge Ortrie D. Smith.

Poulikidis confessed to causing a homeowner to obtain a $61,500 loan from Fremont Investment and Loan in order to refinance a mortgage and provide approximately $19,350 in home improvements by Roofing & Siding Plus, a company owned by Poulikidis. On that same day, he caused the homeowner to obtain a second mortgage, a $9,000 loan from his company. The second mortgage was later sold to another financial company.

Poulikidis assured the homeowner that under the re-financing, her new payments wouldn’t be any more or less than what she was previously paying. However, the monthly payments actually increased to a level that caused her to be unable to afford them and have to file for bankruptcy.

The loan application for the initial mortgage failed to disclose the second mortgage loan being sought from the homeowner. Fremont Investment and Loan would not have made the loan if it had been aware of the second mortgage.

Under federal statutes, Poulikidis is subject to a sentence of up to 10 years in federal prison without parole, in addition to payment of a $250,00 and restitution to six homeowners.

Attorney General Koster Fights Fraud in Foreclosure Rescue Industry

blog@www.castlelaw.net (News Author)13991 — Fri, 09 Apr 2010 08:00:00 EST

According to a March 30 statement from Missouri Attorney General Chris Koster, he won a judgment against two foreclosure rescue companies. The firms were allegedly taking money from distraught homeowners, but failed to provide the services they promised.

Koster said that his office has a zero tolerance policy towards “any mortgage modification firm that preys on and cheats desperate homeowners. He said that his office would use “all its powers” for the investigation and prosecution of business involved in schemes “to defraud Missouri consumers.”

Gateway Mortgage Modification, owned by Richard R. Reichert Jr., and Palm Beach Gardens, Florida-based First Universal Lending LLC are named under the judgments.

Koster alleged that Gateway was unlawfully charging up-front fees for foreclosure and mortgage modifications and making false promises to consumers that attorneys would negotiate loan modifications on their homes.

Under the court’s judgment, Gateway and Reichert have been ordered to pay fines of $65,000 and have been barred from charging up-front fees for their services and falsely representing to consumers that modifications would be negotiated by attorneys. The ruling also prohibits the company from violating Missouri’s merchandising practices and foreclosure consultant laws. They were also ordered to pay attorney fees and costs. Another $10,000 penalty will be imposed if the company fails to pay the ordered restitution.

Koster alleged that First Universal marketed its services to homeowners facing difficulty paying their mortgages or facing foreclosure. The company also allegedly promised customers lower house payments or lower interest rates and advised some clients to stop making mortgage payments while the modification process proceeded.

The court ordered First Universal to pay more than $51,000 in restitution and $23,000 in civil penalties. They are additionally banned from charging up-front fees, advising homeowners to cease making mortgage payments, and promising loan modifications that are not delivered.

Missouri and Kansas Foreclosures Still on the Rise

blog@www.castlelaw.net (News Author)13990 — Fri, 09 Apr 2010 08:00:00 EST

In February, the home foreclosure action in the states of Kansas and Missouri moved in the opposite direction from the national trend.

According to monthly data released on March 11 by RealtyTrac, foreclosure filings across the U.S. (default notices, scheduled auctions, and bank repossessions) saw a decrease of two percent from January to February. However, the numbers were a six percent increase from February of last year.

In Kansas, the foreclosure rate for February was a 12.15 percent increase from January, but a 32 percent decrease from last February. The numbers represent 794 properties being affected.

In Missouri, the foreclosure rate was 2.34 higher than in January, with 3,014 properties being involved. However, the rate was a decrease of 3.68 percent from February of last year.

The data seems to indicate that while the foreclosure wave was slow affect the Kansas/Missouri region, the troubles continue to ripple through communities.

Publisher of Philadelphia Inquirer and Daily News Fights Court Ruling

blog@www.castlelaw.net (News Author)13989 — Fri, 09 Apr 2010 08:00:00 EST

Lenders to the bankrupt Philadelphia Newspapers have filed an appeal of a court decision that prevents them from bidding what they are owed in an auction of the publisher’s business, according to a report from Reuters.

The company, which publishes The Philadelphia Inquirer and Daily News, owes nearly $300 million to the financial institutions. The institutions had sought to make an auction bid that didn’t include a large cash component, instead relying upon the debt they hold to determine their offer’s value. However, earlier in March, a three-judge panel of the U.S. Court of Appeals for the Third Circuit ruled against them, stating that the law “contains no statutory right to credit bidding.”

According to court documents Reuters cited, the lenders have requested a hearing with the full panel of the court’s judges to review the 2-to-1 ruling.

MGM Under Crushing Amounts of Debt, Delays Paying Creditors

blog@www.castlelaw.net (News Author)13832 — Fri, 02 Apr 2010 08:00:00 EST

It appears that Metro-Goldwyn-Mayer Inc. will be getting another reprieve.

The trouble movie studio has been granted a six-week extension on a looming due date for interest payments on its $3.7 billion debt load as its banks and bond holders debate the company’s future.

The company confirmed that its more than 140 lenders have agreed to push the deadline back from April 2 to May 14. This is the fourth extension MGM has received since October of last year. Additionally, JPMorgan Chase has agreed to delay the due date for payments on a $250 million revolving credit facility from April 8 to May 14.

The expected move allows the company’s stake holders to have more time to decide whether they will accept a $1.5 billion offer from Time Warner or a competing bid from Access Industries, the holding company of industrialist Len Blavatnik. Both bidders came in below the $2 billion-plus MGM’s creditors were seeking. MGM’s other options are to pursue a restructuring plan that would keep it as an independent company, or enter bankruptcy proceedings.

Affiliated Media Emerges from Bankruptcy

blog@www.castlelaw.net (News Author)13831 — Fri, 02 Apr 2010 08:00:00 EST

According to a report from the Associated Press, Affiliated Media, the publisher of 54 newspapers including the San Jose Mercury News, said on March 22 that it had emerged from bankruptcy protection.

On March 4, the bankruptcy plan of Affiliated Media, the holding company for the MediaNews Group, received approval. The entity filed for Chapter 11 protection on January 22.

Under the approved plan, Affiliated will reduce its debt from $930 million to around $165 million, but in exchange will relinquish ownership to dozens of lenders, led by Bank of America. The lenders will hold 89 percent of Affiliated’s common stock. Affiliated’s president, Joseph Lodovic IV, and chief executive, William Dean Singleton, will own the remaining stake.

"Octomom" May Be Facing Foreclosure

blog@www.castlelaw.net (News Author)13830 — Fri, 02 Apr 2010 08:00:00 EST

Nadya Suleman, the infamous mother of 14, including the octuplets whose 2009 birth thrust the family into the national spotlight and brought her the nickname “Octomom” may soon be among the ranks of Americans who have lost their homes to foreclosure. According to Amer Haddadin, who holds the mortgage of the Suleman family’s $565,000 home in La Habra, California, says that he plans to move to foreclosure proceedings due to the family not keeping up with their payments.

In 2009, Haddadin signed the home over to Suleman’s father. Ed Suleman was supposed to pay $4,000 per month and a final balloon payment of $450,000 that was due earlier this month. However, the family has been late making recent payments and has yet to pay the balloon payment. Suleman was given an ultimatum to pay the $450,000 or face a foreclosure lawsuit.

All 14 of Suleman’s children were conceived through artificial insemination. The octuplets were conceived while she was unemployed and living with her parents and first six children. Reportedly, she used money paid out for disability claims for three of her older children for the in-vitro fertilizations. The Medical Board of California has accused her doctor, Michael Kamrava, of neglect for implanting excessive numbers of embryos on multiple occasions, including Suleman’s case.

Last year, Suleman signed her family up for a reality show produced by England’s Eyeworks, the third largest television producer worldwide. The show, which she and the children were paid a collective $250,000 for, has been described as more documentary than reality show. Though the show did not air on U.S. television, the Sulemans have been featured on several U.S. television specials.

Suleman said on a recent appearance on “The View” that she might consider having one more child.

FTC Catches Two Fraudulent Foreclosure "Rescue" Companies

blog@www.castlelaw.net (News Author)13829 — Fri, 02 Apr 2010 08:00:00 EST

According to the Federal Trade Commission (FTC), two companies selling mortgage relief services have been barred from offering foreclosure “rescues” falsely claiming an 85 percent success rate and illegally charging upfront fees.

Under a settlement order with the FTC and the states of California and Missouri, an $8.6 million judgment was called for against George Escalante and his two companies, U.S. Foreclosure Relief and H.E. Servicing. The judgment will be suspended with the exception of $980,000 in cash, jewelry, and vehicles and Escalante and his companies have surrendered to lenders or the court-appointed receiver.

Also under the order, a $3.3 million judgment was imposed against co-defendant Cesar Lopez and a $3.4 million judgment was imposed against co-defendant Adrian Pomery. The FTC said those judgments will be suspended because of their inability to pay. If it is discovered that they have misrepresented their financial condition, the full amount will immediately become due.

The companies were accused by the FTC of falsely boasting a “proven track record” and the “highest standards of business ethics” in being able to get mortgages reduced to save borrowers from foreclosure.

The FTC said the companies were also allegedly in violation of state laws that prohibit upfront fees being charged for foreclosure consultation services. The practices were immediately barred by the court and the defendants’ assets were frozen.

Under the settlement order, the companies are banned from the sale of mortgage loan modifications and any other foreclosure relief services. They are also barred from making misrepresentations about financial goods and services.

Extended Car Warranty Company Files For Bankruptcy In St. Louis

blog@www.castlelaw.net (News Author)13678 — Mon, 29 Mar 2010 08:00:00 EST

In St. Louis, an extended car warranty company has filed for bankruptcy after months of being under fire. Reports say that the Wentzville, Missouri company US Fidelis petitioned for Chapter 11 bankruptcy this week and announced extensive short-notice layoffs.

The company had been under a significant amount of financial trouble for some months. In December of last year, the company stopped all sales and marketing and cut its workforce from 1,100 to 200. In January, the company’s headquarters in Wentzville was auctioned off.

The ethics of the extended warranty company has been in question since 2009, when the Better Business Bureau reported that 33,000 people had enquired about the company and 1,100 had complained. Further investigation has found that the owners of the company, brothers Darian Atkinson and Cory Atkinson, had been using the company’s funds to pay for their lavish lifestyles, including a sprawling $17 million mansion in Lake St. Louis. Between the two brothers, they owe US Fidelis almost $50 million.

To add to the company’s woes, a class action lawsuit has been filed against the company by consumers for using illegal telemarketing strategies, for high-pressure sales tactics used against the elderly, and for selling worthless warranties.

It is unclear how this bankruptcy will affect the remaining workers at US Fideli or the lavish lifestyles of the company’s owners. The company made$264.5 million in gross revenue from service contract sales in 2008. The company has an estimated 1,500 creditors who may or may not be able to access the Atkinson brothers’ personal wealth.

More Consumers File For Bankruptcy In February 2010

blog@www.castlelaw.net (News Author)13677 — Sun, 28 Mar 2010 08:00:00 EST

Although the stock market is showing improvements and although many economists have said that the recession has come to an end, personal bankruptcy filing rates continue to soar across the country as well as in Missouri and Illinois. Although recovery may have begun, it may be a long and tough road for millions of Americans who are still reeling from job losses, upside down mortgages, and broken retirement plans.

The rate of consumer bankruptcies soared 14 percent as compared to consumer bankruptcies in February 2009, with 111,693 people filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. This is also a nine percent increase in the number of people who filed for bankruptcy in January 2010 – numbers higher than we have seen since new bankruptcy laws were enacted in 2005. Economic experts believe that many families may have been borrowing money to see themselves through hard times – but now cannot pay back their loans.

Another interesting trend is that Chapter 7 bankruptcy is increasing significantly when Chapter 13 bankruptcy has only increased by three percent. While Chapter 7 bankruptcy allows families to erase much of their debt, Chapter 13 bankruptcy reorganizes debt and allows families to save their houses from foreclosure.

Unfortunately, consumers are not the only ones still being affected by the recent recession – business bankruptcies were also up this month with 6,557 business bankruptcy filings this February, compared with 6,390 business bankruptcy filings in February of 2009. Economists expect the rates of bankruptcy to rise even further in coming months.

Aurora Ethanol Plant Emerges From Bankruptcy, Resumes Building Plant

blog@www.castlelaw.net (News Author)13675 — Sat, 27 Mar 2010 08:00:00 EST

All too often consumers are lead to believe that bankruptcy is a financial decision that never goes away and that you can never recover from. But this week an Illinois company proved that bankruptcy is sometimes a necessary choice that you can recover from – and that can actually help you recover.

After filing for Chapter 11 bankruptcy in February 2009, an Aurora, Illinois, Ethanol company has emerged from bankruptcy and is continuing work on a new plant. Aventine Renewable Energy of Pekin, Ill., will restart work on their Aurora West ethanol plant and finish the project by fall of 2010. In addition, the company, which was struggling with finances last year, will also finish a second plant as soon as it can.

While the company did not give an official date for completion for either ethanol plant, the company’s grain supplier, Aurora Cooperative, told reporters that it has worked out a plan to begin delivering grain to the Illinois plant in September of this year. Both plants were within a few months of completion when the company filed for bankruptcy last year.

After emerging from bankruptcy, the company appointed Thomas Manuel as its new chief executive officer and chief operating officer. Aentine is one of the country’s largest producers of ethanol.

Following a number of years of success, the ethanol industry faced a number of difficulties in recent years stemming from high corn prices and low petroleum prices.

Loan Modification Company Admits To Fraud In Missouri, Pays $1 Million

blog@www.castlelaw.net (News Author)13674 — Fri, 26 Mar 2010 08:00:00 EST

The government’s new “Operation Loan Lies” has led to a $1 million settlement after the state of Missouri accused two loan companies of fraudulent behavior. The companies, U.S. Foreclosure Relief Corp. and H.E. Servicing Inc., told customers that they could help them stay in their homes, avoid foreclosure, and modify their mortgage loans.

Although the companies boasted an 85 percent success rate, the federal and state investigation into the loan modification company revealed that the company had only negotiated 311 loan modifications – not the 10,000 that they claimed.

Those involved in the loan modification business will be punished harshly. One million dollars will go back to the homeowners who were scammed by the foreclosure assistance companies while the owners, George Escalante, Cesar Lopez, and Adrian Pomery will be banished from the industry forever. Although the federal courts asked more millions more, the $1 million settlement came after it became clear that the defendants did not have the funds. As it stands, the $1 million will come from the three men selling their assets, including cars and jewelry. Lopez declared personal bankruptcy last year.

None of the men admitted to committing fraud during the settlement.

Fraudulent loan modification companies, foreclosure assistance companies, and debt settlement companies have become more and more common, especially as tough economic times make for millions of potential victims. These companies often ask for upfront fees and other payments while rarely helping families reduce or pay off their debts. Both Missouri and the federal government are working towards shutting these companies down and creating greater awareness among consumers.

Bluffs at Brush Creek Apartment Project Backers File for Bankruptcy

blog@www.castlelaw.net (News Author)13636 — Thu, 25 Mar 2010 08:00:00 EST

Tailor Made Enterprises LLC of Lee’s Summit has filed for Chapter 11 bankruptcy protection for its Bluffs at Brush Creek apartment project in Kansas City.

In the petition, which the company filed in the western Missouri district of U.S. Bankruptcy Court on March 16, Tailor Made lists assets of approximately $5.6 million, including the 60-unit apartment complex, which the petition values at $5.6 million, and a $1,000 deposit at a local bank.

The petition also reports liabilities of $3.2 million, including $3 million owed on a $5.6 million mortgage held by Litton Loan Servicing of Houston and $50,000 owed on a second mortgage held by AWM Real Estate Fund in Overland Park.

Top Five Reasons People File Bankruptcy Released on Yahoo!

blog@www.castlelaw.net (News Author)13635 — Thu, 25 Mar 2010 08:00:00 EST

The following is a list of the top five most common reasons individuals file for bankruptcy protection:

1. Medical Expenses

According to a study conducted by Harvard University, people who file for bankruptcy due to medical expenses account for 62 percent of all personal bankruptcy filings. The study also bucked a popular myth that medical bills only affect the uninsured by revealing that 78 percent of filers had some sort of health insurance.

Rare or serious diseases or injuries can easily cause hundreds of thousands of dollars worth of medical bills to accumulate. Said bills can rapidly wipe out savings and retirement accounts, college funds, and home equity. With those exhausted, bankruptcy could be the only option left, regardless of whether or not a patient or his or her family was able to apply health coverage to a portion of the bill.

2. Job Loss

Whether it is due to layoff, termination, or resignation, losing income from a job can be equally devastating. Some are fortunate enough to receive severance packages. However, many will receive pink slips with little to no prior notice. Not having an emergency fund to draw from in place only makes the situation worse, and the use of credit cars to pay bills can result in disaster.

Losing insurance coverage and the cost of COBRA insurance can also put a drain on the already limited resources of a job seeker. Those unable to find similar gainful employment for an extended period of time could also be unable to recover from the lack of income in time to keep creditors at bay.

3. Poor/Excess Use of Credit

Some people are simply unable to control their spending habits. Credit card bills, installment debt, and car and other loan payments can eventually spiral out of control under the borrower is finally unable to access funds from friends or family or otherwise obtain a debt-consolidation loan. At that point, bankruptcy typically becomes the inevitable alternative.

According to statistics, the majority of debt consolidation plans fail for various reason and usually only delay filing for most participants. Though home-equity loans may be a good solution to unsecured debt in some cases, once exhausted, irresponsible borrowers may face foreclosure if they are unable to make this payment as well.

4. Divorce/Separation

There are multiple ways in which marital dissolutions can create tremendous financial strain on both partners. First, there are legal fees, which can sometimes be astronomical, followed by a division of martial assets, a decree of child support and/or alimony, and finally, the continual cost of maintaining two separate households after the split. For some, the legal costs alone are enough to prompt a bankruptcy filing, while wage garnishments to cover back child support or alimony can strip others of the ability to pay the remainder of their bills. Spouses failing to pay the support dictated in the agreement can often leave the other completely destitute.

5. Unexpected Expenses

Property loss because of theft or casualty, such as earthquakes, flood, or tornadoes, for which the owner is not insured can cause some to be forced into bankruptcy. Many homeowners are likely to not be aware of being required to take out separate coverage for certain events such as earthquakes. Those without coverage for this type of peril may face not only the loss of their homes, but also the loss of most or all of their possessions. Not only do they then have to pay for these items to be replaced, they must also fine immediate food and shelter in the meantime. Furthermore, those who lose their wardrobes in such a disaster could no longer be able to dress appropriately for their work, which could cause them to lose their jobs.

Illinois Man: Should I Walk Away From My Home Or Declare Bankruptcy?

blog@www.castlelaw.net (News Author)13633 — Thu, 25 Mar 2010 08:00:00 EST

With high rates of job loss and underwater mortgages, it is no surprise that millions of middle class American families are stuck between a rock and a hard place when it comes to making difficult financial decisions. This week, The Wall Street Journal answered a letter from an Illinois man struggling to decide between walking away from their home and declaring Chapter 7 bankruptcy.

The family has two mortgages – both with adjustable-rates that readjust in the spring of next year. They know that they will not be able to make the new payments, but are unsure how to extract themselves from the situation. On one hand, the family could allow their house to go into foreclosure while paying off other debts. On the other hand, they could try to declare bankruptcy and get a new start altogether.

The Wall Street Journal columnist responded to the problem with a plan – though, unfortunately, none of the options are easy ones. He suggested that the family should first check and see if they qualify for help from the government’s Making Home Affordable Program. Next, they should talk to a specialized bankruptcy lawyer about their bankruptcy options in Illinois – noting that Chapter 7 bankruptcy is probably the easiest way to clear their debts and move forward. Finally, the expert suggested looking into a Chapter 13 bankruptcy that could provide them with a sustainable debt repayment plan.

Olympic Ski Venue Avoids Foreclosure

blog@www.castlelaw.net (News Author)13368 — Fri, 12 Mar 2010 08:00:00 EST

It seems that Whistler-Blackcomb, considered one of the greatest ski resorts in the world, will avoid foreclosure and continue being owned by Fortress Investment Group. During the 2010 Winter Olympics, rumors have been swirling that lenders, including Lehman Brothers, were taking advantage of a missed payment from Fortress to take back the resort and put it up for sale on the open market.

Many insiders believed that Vail Resorts would likely purchase Whistler, where several Olympic events were held. Vail owns some of the ski resorts considered to be the best in the world, including Vail, Beaver Creek, Breckenridge, Keystone, and Heavenly.

Supposedly, the terms include Fortress making a payment of $150 million, receiving an extended maturity date, and writing down a couple hundred million dollars and a higher interest rate. The specific details are expected to emerge soon.

The situation was the result of Fortress taking out debt when it acquired Intrawest and was solely related to timing and environment, rather than the performance of the ski resort.

First English Premier Soccer Team to Seek Bankruptcy Protection

blog@www.castlelaw.net (News Author)13367 — Fri, 12 Mar 2010 08:00:00 EST

On February 26, Portsmouth became the first English Premier League soccer team forced to seek bankruptcy protection from its creditors. The move is expected to enable the insolvent business to restructure financially.

The High Court placed the bottom club in the world’s richest league into administration less than two years after it won the FA Cup. Balram Chainrai, the club’s fourth owner this season, failed to clear debts of approximately $105 million.

Portsmouth will continue operation, but will nearly certainly be relegated to the second-tier, with the nine-point penalty that administration brings leaving manager Avram Grant’s team 17 points from safety.

Court-appointed Andrew Andronikou has asked that the Premier League allow the club to sell one or two players and advance a $16.7 million parachute payment that would be due after relegation to the League Championship.

Everyone in the club, from manager Avram Grant to the players, are likely to see their wages slashed. Chief executive Peter Storrie said that he plans to leave once the club’s future is secured.

Chanrai seeks to recover a loan of $25.8 million he made to the previous owners. The Hong Kong businessman took over the club in February as a short-term arrangement to protect his investment after he became frustrated by several loan repayment deadlines were missed.

FIFA plans to discuss the 112-year-old club’s plight at its next executive committee meeting on March 18.

Catalina Lighting Inc Files for Chapter 11 Bankruptcy

blog@www.castlelaw.net (News Author)13359 — Thu, 11 Mar 2010 08:00:00 EST

Catalina Lighting Inc., a manufacturer of residential lighting products, has filed for Chapter 11 bankruptcy protection, citing the recession as the reason.

In documents filed on February 25 in U.S. Bankruptcy Court in Miami, the company lists assets as high as $10 million and debt as high as $50 million. Catalina Industries, an affiliate of Catalina Lighting, also filed for protection.

According to what Catalina Chief Executive Officer A. Corydon Meyer said in court papers, Catalina and several other consumer lighting industry companies were hit particularly hard by the recession. He said that the slowdown in building and remolding has negatively impacted sales.

Catalina, a Miami-based company, distributes to retailers such as Wal-Mart, Lowes, OfficeMax, Sears, Staples, Kmart, and Bed Bath and Beyond.

Greece to Face Bankruptcy?

blog@www.castlelaw.net (News Author)13358 — Thu, 11 Mar 2010 08:00:00 EST

On February 26, George Papandreou, the prime minister of Greece warned of a national bankruptcy unless public spending is slashed as German banks vowed to shun Greek debt and the government was said to be readying a critical bond issue.

Papandreou asked lawmakers in Athens, “Are we going to let this country go bankrupt or are we going to react?”

According to a report in The Wall Street Journal, Greece delayed a major bond issue due the same week Papandreou spoke to lawmakers that was aimed at raising 3-5 billion euros due to turbulence after a general strike on February 24 and warnings of potential credit rating downgrades. The report said the issue was delayed until the following week.

The report said that many view the new bond as a “test of the Greek government’s ability to raise money in the capital markets to finance its operations and retire old debt.”

In another development that has caused concerns, several major German banks, Commerzbank subsidiary Eurohypho, Hypo Real Estate, and Postbank, said on February 26 that they would shun Greek government bonds.

The Bank of International Settlements, the so-called central bank’s central bank, said that German banks have been among the largest buyers of the Greek government’s debt.

The German banks’ remarks are likely seen as significant in that they signal a belief that bonds issued by Greece have become took risky for some investors in high-class sovereign debt.

However, Greek bonds rallied on February 26 on a report of Germany considering coming to the country’s aid.

Late on February 25, the yield on the 10-year Greek sovereign bond fell from 6.64 percent to 6.379 percent. Bond prices and yields move in opposite directions.

Greece has the largest public deficit in the eurozone and its fiscal woes have brought the euro’s value down and raised concerns for bloc’s cohesiveness.

Analysts at Goldman Sachs say that Greece has raised approximately 14 billion euros ($19 billion) of an estimated 55 billion euros in financing needs this year. It also has 20 billion euros in debt service payments due in April and May.

Ohio Man Finds His Own Way to Avoid Foreclosure

blog@www.castlelaw.net (News Author)13244 — Fri, 05 Mar 2010 08:00:00 EST

A man from Ohio says that he bulldozed his $350,000 home in order to prevent a bank from foreclosing on it.

According to Terry Hoskins, he has struggled with the RiverHills Bank over his Moscow, Ohio home for several years and has had problems with the Internal Revenue Service. He said the IRS put liens on his carpet store and commercial property and the bank claimed his home as collateral.

Hoskins said that he owes $160,000 on his home. He said that he had finally had enough and bulldozed the home.

Tribune Co. Gets Extra Time for Bankruptcy Plan

blog@www.castlelaw.net (News Author)13216 — Wed, 03 Mar 2010 08:00:00 EST

On February 18, Tribune Co. was granted an extension on its exclusive right to file a reorganization plan in its Chapter 11 case by a U.S. Bankruptcy Court judge in Delaware. The extension was until March 31.

The extension provides Tribune Co. more time to attempt to reach a compromise between an increasingly belligerent set of senior and junior creditors representing nearly $13 billion in claims against the Chicago-based media conglomerate.

In his decision, Judge Kevin Carey also delayed until April 13 consideration of a motion by the Official Committee of Unsecured Creditors in the case seeking permission to bring a complaint of “fraudulent conveyance” against Tribune Co., which owns the Chicago Tribune and formerly owned the Chicago Cubs. He also pushed off consideration of a separate motion by a group of deeply subordinated bondholders calling for the appointment of an independent examiner to investigate the fraudulent conveyance claims.

Giants Player Plaxico Burress Faces Foreclosure

blog@www.castlelaw.net (News Author)13215 — Wed, 03 Mar 2010 08:00:00 EST

Plaxico Burress, the embattled former wide receiver for the New York Giants, could be without a Florida home to return to once he emerges from prison.

On January 22, the imprisoned Super Bowl hero and his wife, Tiffany, were hit with a $3.3 million foreclosure suit from Deutsche Bank National Trust Co., as a trustee for a mortgage-backed securities fund, according to Broward County Circuit Court records.

The suit was filed over the $2.9 million mortgage signed by Burress in 2005, covering his Lighthouse Point home, just north of Fort Lauderdale.

Burress purchased the 6,872-square-foot waterfront home for $4 million in 2005. Two years later, he moved his official residence from New Jersey to Florida.

Burress caught the game-winning touchdown in the final minute of Super Bowl XLII, when the Giants defeated the previously unbeaten New England Patriots. He was given a two year contract extension by the Giants in 2008 worth $7 million per year.

That fell apart in November 2008, when Burress went to the Latin Quarter nightclub in Manhattan with a gun tucked in his pants. The unlicensed weapon slid down his leg and fired a bullet into his thigh. He was released by New York at the end of the season.

Burress was charged by New York authorities with two counts of criminal possession of a weapon and one count of reckless endangerment in August 2009. He signed a plea deal to a lesser firearms charge and received a two year prison sentence.

Since being imprisoned, Burress has said in media interviews that he would like to return to the NFL after he emerges from prison in 2011. It is unclear if that would be enough to save his home.

Kansas City Foreclosure Rate Decreases, Still High for the Year

blog@www.castlelaw.net (News Author)13214 — Wed, 03 Mar 2010 08:00:00 EST

According to a February 11 report from RealtyTrac Inc., home foreclosure activity in the 15-county Kansas City area saw a decrease of 13.3 percent from December to January, but were still 66.9 percent higher than January 2009.

RealtyTrac, which is based out of Irvine, California, reported foreclosure actions, including default notices, scheduled auctions, and bank repossessions, against 1,596 in January. That was a decrease from 1,841 homes in December, but an increase from 957 a year ago.

The January total means that one out of every 544 households in the 15-county area received a foreclosure filing in January.

The most foreclosure activity took place in Jackson County, with reported filings against 962 homes, or one out of every 331. Wyandotte County was next, with 221 filings, or one out of every 307. Johnson County was third, with 195, or one out of every 1,113.

Missouri was the 32nd ranked state for residential foreclosure activity in January. Kansas was ranked No. 40.

Foreclosure actions were filed against 2,945 homes in January, a decrease of 6.9 percent from December, but an increase of 19.3 percent from January 2009. The most recent number represents one filing per every 905 homes.

In Kansas, foreclosures were filed against 708 homes, one out of every 1,733, which was a decrease of 33.1 percent from December, but an increase of 7.5 percent from a year ago.

Across the U.S., RealtyTrac reported January foreclosure filings against 315,716 homes, which is one out of every 409. That’s a decrease of nearly 10 percent from October, but an increase of 15 percent from January 2009.

Nevada remains the state with the highest foreclosure rate for the 37th month in a row. One out of every 95 Nevada housing units received a foreclosure filing in January, which is more than four times the national average.

The second-highest rate was in Arizona, with one out of every 129 homes, and Florida and California were next, each at one out of every 187 homes.

Former InBank CEO Files For Personal Chapter 7 Bankruptcy

blog@www.castlelaw.net (News Author)13156 — Sun, 28 Feb 2010 08:00:00 EST

A Chicago business woman has filed for Chapter 7 bankruptcy shortly after her troubling banking business failed last fall. The Chicago Tribune reported that Cynthia Grazian filed for Chapter 7 liquidation bankruptcy on January 22, 2010. She reported $2.2 million in assets and $4.3 million in debts when filing for Illinois bankruptcy.

Grazian is the former CEO of the troubled InBank, the company located in Oak Forest, Il, that was seized by the Federal Deposit Insurance Corp. in September of 2009. The bank began to deteriorate after Grazian wrote off $13 million in bad loans and lost millions more. As the bank’s troubles worsened, an August cease-and-desist order set by the Federal Deposit Insurance Corp. and the Illinois Division of Banking asked the bank to fire Grazian and to raise a sufficient amount of capital. InBank had been in business since 1970.

Most of Grazian’s assets are tied up in a posh Lake Shore Drive condo valued at $2.2 million. She made $272,501 at Inbank in 2008. It is not clear who her creditors are.

Chapter 7 bankruptcy is a form of liquidation bankruptcy in which a person sells their assets in order to pay off some of their debts. In Illinois, there are a number of exemptions when it comes to the liquidation of assets and property. If you think Chapter 7 bankruptcy may be an option for your family’s financial situation, contact a specialized Illinois bankruptcy lawyer today.

Missouri House Struggles To Save President Casino From Ruin

blog@www.castlelaw.net (News Author)13133 — Sat, 27 Feb 2010 08:00:00 EST

What will be the fate of the troubled President Casino, which has struggled trough the last year of tough economic times? The Missouri House may have a chance to decide the business’ fate with a new bill.

Although the Missouri Gaming Commission seems intent on stripping the President Casino of its gambling license, Missouri lawmakers may create a law that would allow the struggling casino to stay open. Why do MO politicians want to keep the facility open despite its many downfalls? Representative Tishaura Jones, who is presenting the bill, and St. Louis Mayor Francis Slay both say that keeping the doors of the casino open would save jobs and keep the city’s economy more stable in a time of great need for employment and business.

The bill, House Bill 1826, would make it illegal for the Missouri Gaming Commission to close a casino for economic purposes and is specially tailored to save the President Casino from its current predicament. At the beginning of the year, the gaming commission voted unanimously to close Present Casino.

Many Missouri lawmakers questioned the MO commission’s ability to say that President Casino didn’t meet standards when no standards were initially provided. At the same time, those who oppose the bill say that the new law would basically render the gaming commission powerless.

President Casino went bankrupt in 2006 and was bought by Pinnacle Entertainment. The casino has struggled for a number of years financially.

Kansas City Star: Should Underwater Homeowners Walk Away From Mortgage

blog@www.castlelaw.net (News Author)13132 — Sat, 27 Feb 2010 08:00:00 EST

The latest real estate news is not heartening: home prices are dropping to new lows and an estimated 25% of all homeowners are underwater on their mortgages. If a family is in financial trouble and looking for a way out, how does having a home with a large mortgage and no equity factor into a solution?

According to the Kansas City Star, some homeowners are turning to strategic default: in which they walk away from their mortgage and their home and simply stop paying their bill. This decision, which ultimately ends in foreclosure, is a drastic one.

While recent reports show that most people are continuing to make payments on houses that are worth a fraction of what they were two years ago, others are deciding to break their promise to the bank and move on with their lives without their property. While some choose to honor the contact they hold with the bank, others can’t understand paying for something for the next thirty years that isn’t worth the money.

An added complication is that Missouri and Illinois law states that banks can take other property from you if you default on a loan, such as a car, your wages, or your savings. However, since mortgages are defaulting at record rates, banks often do not have the time to act.

Economists add that the cost of moving – both financial and emotional – may be higher than you think if you chose to strategically default on your mortgage loan. And that defaulting could make it significantly more difficult to buy a home in the future.

Chicago Workers Protest After Duraco Files Chapter 7 Bankruptcy

blog@www.castlelaw.net (News Author)13131 — Sat, 27 Feb 2010 08:00:00 EST

Protests have broken out at the closed Duraco Products Plant near Chicago as workers demand to be paid wages for work already completed.

Duraco Products declared Chapter 11 bankruptcy in 2008 after the plastic injection molding company faced serious financial difficulties. The company’s factory is located in Streamwood, where roughly 20 workers manufactured planters and birdfeeders for the business. Now the company has been ordered by the US Bankruptcy Court to go into Chapter 7 bankruptcy following a rough two-year financial struggle.

When Duraco originally filed for Chapter 11 bankruptcy, the company listed its assets at around $50,000 and its liabilities at between $1 million and $10 million. While Chapter 11 reorganization bankruptcy allows companies to continue to function, Chapter 7 liquidation bankruptcy usually involves closing a building and selling its assets in order to pay its debts – Duraco has closed its doors.

Community organization Chicago Workers' Collaborative says that the non-union workers who are protesting are owed an estimated $150,000. Many of them had been working without pay for many months and some have lost savings, cars, and even houses while waiting for the fortune of the company to improve.

It is unclear how and if the workers will receive their lost wages, though many are planning to file lawsuits against the owners and to file claims with the bankruptcy court.

Missouri Lawmakers Discuss Bill for Debt and Injured Workers

blog@www.castlelaw.net (News Author)13060 — Thu, 25 Feb 2010 08:00:00 EST

On February 15, lawmakers in the Missouri House considered a bill that would stave off bankruptcy in a state fund for injured workers.

The Second Injury Fund, which pays claims for workers with pre-existing injuries who are injured a second time on the job, has been in dire shape since 2005, when a cap was instituted on its revenues.

The bill the House heard would not boost the cap, but would move one class of injuries from the fund’s responsibility to be covered by employers’ workers’ compensation insurance.

Approval of the bill would result in increased employers paying increased workers’ compensation premiums, in turn increasing Second Injury Fund revenues, as the Fund is funded by a surcharge on workers’ compensation premiums.

During the committee hearing, unions and groups representing employers were tentatively in support of the bill, but others questioned whether it would eliminate the fund’s insolvency.

Movie Gallery Closes Stores in Missouri During Bankruptcy

blog@www.castlelaw.net (News Author)13059 — Thu, 25 Feb 2010 08:00:00 EST

As a part of the national chain’s bankruptcy, Movie Gallery stores in Jefferson City and Fulton and one store in Columbia will be closed. In all, the company plans to close more than 2,000 video rental stores across the U.S.

Movie Gallery Inc., which is owned by Hollywood Entertainment Inc., filed for Chapter 11 bankruptcy protection on February 3. The action will allow the firm to continue operations as it restructures its debt. Included in the restructuring is the closing of multiple Movie Gallery, Hollywood Video, and Game Crazy stores across the U.S.

Across the past two years, the firm has closed several hundred underperforming stores across the U.S. However, that was not enough to keep the company from filing for bankruptcy. The firm plans to retain about 900 stores around the country, but as the process continues, others could be added to the closing list.

Bankruptcy Rates Skyrocket 20 Percent In Missouri Ozarks

blog@www.castlelaw.net (News Author)13046 — Wed, 24 Feb 2010 08:00:00 EST

It is interesting to examine national bankruptcy statistics as the economy struggles to improve, but what is happening locally in regards to personal bankruptcy rates? According to the Springfield Business Journal, Western Missouri’s economy is still badly damaged and bankruptcies are up for both individuals and businesses in 2009.

In Springfield, Chapter 7 bankruptcies were up 18 percent while Chapter 13 bankruptcies were up 13.4 percent over 2008. Business bankruptcies were also up, by 90 percent, with 40 businesses seeking reorganization bankruptcy in 2009 as compared to 21 in 2008. All in all, according to the U.S. Bankruptcy Court in the Western District of Missouri there were 3,014 bankruptcies in 2009 as compared with 25,53 in 2009. These are the highest rates of bankruptcy seen since the bankruptcy reforms of 2005.

Economists say that the recent recession is still tallying casualties in the Ozarks, with the poor real estate market and the poor job market contributing to a high rate of bankruptcies. In addition, the difficulty of securing credit is also harming both families and businesses in the area. Experts say that small real estate businessmen were also hit hard in the last few years. In other cases, some of those who have lost their job have not been able to find work before their unemployment benefits run out.

The U.S. Bankruptcy Court Western Division includes Springfield, Joplin, Carthage, Jefferson City, Kansas City, St. Joseph, and surrounding areas.

Host of Winter Olympics Ski Events Postpones Foreclosure

blog@www.castlelaw.net (News Author)12968 — Mon, 22 Feb 2010 08:00:00 EST

The owners of the Whistler-Blackcombe ski resort, site of many of the events of the 2010 Winter Olympics, have received a reprieve. Lenders had threatened to foreclosure on the resort on February 19 due to the owners being hundreds of millions of dollars behind in their payments.

The foreclosure date has now been postponed until February 26, two days before the closing ceremonies. Lenders, including now closed Lehman Brothers, have been attempting to put more pressure on the owners, Intrawest, to produce the past due payments ($500 million due in December 2009) as the Olympics are still taking place.

Intrawest, a company that owns other ski resorts besides Whistler, has been in deep financial trouble since the housing market crash. They had been counting on sales of properties adjacent to ski resorts to aid them with payments on the financing for the resorts. However, due to economic decline, housing sales have been slow and properties have lost value, creating a financial crisis for the company.

The lenders granted Intrawest a week’s reprieve on the foreclosure auction and talks continue to find a way to work around the problem.

Some analysts believe the foreclosure threats to be nothing more than simply threats and that foreclosure will not be the ultimate outcome. The Winter Olympics taking place at the resort has brought the story into the headlines. Other ski resorts have gone to auction during the current ski season and more could follow until the economy turns.

There are potential buyers for the resort, so a sale prior to foreclosure auction is still a possibility. Another potential option being discussed is bankruptcy, which would give the current owners additional time to seek a buyer or renegotiate the current loans.

Electric Scooter Maker Vectrix Corp Relaunches after Chapter 11

blog@www.castlelaw.net (News Author)12871 — Wed, 17 Feb 2010 08:00:00 EST

Vectrix Corp., a company that manufactures electric scooters, has been relaunched under new ownership after entering Chapter 11 bankruptcy in the fall of 2009.

The new company, which is incorporated in Delaware, has made New Bedford, Massachusetts its headquarters in the U.S. and has leased space in the New Bedford Business Park that was occupied by the former incarnation of Vectrix, as well, according to the park's executive director Thomas Davis.

Vice President of Sales and Marketing Brian Buccella said that the company has already placed a small team of development, operations, and sales staff in the New Bedford office and the needs for additional employees would be evaluated over the following 90 days.

Buccella says the New Bedford facility will eventually expand to include engineers and test facilities, sales offices, and a multi-product vehicle assembly line.

The former Vectrix Corp. filed for Chapter 11 protection in September and then reached a deal to sell the majority of its assets to New Vectrix LLC, which was sponsored by New York-based GH Venture Partners LLC. Court records say EVB Technology Limited, an affiliate of Hong Kong's Gold Peak Industries, also holds an interest in New Vectrix LLC.

FairPoint Communication Finalizes Bankruptcy Plans

blog@www.castlelaw.net (News Author)12857 — Tue, 16 Feb 2010 08:00:00 EST

The Associated Press says that after delaying for two months, FairPoint Communications Inc. has finally filed its plans for reorganization under bankruptcy in U.S. Bankruptcy Court in New York on February 8.

The North Carolina-based company originally was to file in December. However, the company delayed filing three times, saying it needed more time to negotiate with lenders and unions.

The company's plan would reduce its debt load by nearly two-thirds, from nearly $2.8 billion to $1 billion, and would provide secured creditors with a 92 percent ownership stake in the restructured company. Unsecured creditors would be paid 17 cents for every dollar they're owed.

In 2008, FairPoint purchased Verizon's landlines in northern New England, but filed for bankruptcy in October 2008. The telecommunications company recently reached a tentative accord with two unions that represent more than 75 percent of its employees.

Movie Gallery Finds Itself in Bankruptcy, Closing More Stores

blog@www.castlelaw.net (News Author)12795 — Fri, 12 Feb 2010 08:00:00 EST

Movie Gallery, the second-largest video store chain in the U.S., has retreated back into bankruptcy proceedings and plans to close 805 more stores.

The announcement was not much of an event at Hollywood Video in Boise, Idaho, which has been closing since January 20. Movies at that store have been marked all the way down to 70 percent off and likely will drop to 80 percent. The store is closing for good on February 14, according to a store employee.

The news hit harder in Emmett, Idaho, where the local Movie Gallery store's closure will make a significant dent in the rental options of residents. Manager Ann Smith says she's heard several concerns from her customers and they are unable to believe the news.

The Movie Gallery chain, which is based out of Wilsonville, Oregon, emerged from a 2007 bankruptcy eight months ago. But the chain recently filed for Chapter 11 bankruptcy protection from creditors, this time in Richmond, Virginia. The company warned that more stores will close after the first batch as the company continues to use the courts to restructure finances.

The 805 store closings represents approximately one-third of the chain's stores. The company peaked at more than 4,600 stores across the U.S. in 2005. After this round of closings, the collection of Movie Gallery, Hollywood Video, and Game Crazy locations left will total around 1,900.

Just a decade ago, video stores were a ubiquitous part of the retail landscape. However, in the past few years, new competition from mail-order DVD rental services suck as Netflix and $1-a-night kiosks maintained in supermarkets and discount stores by RedBox or Blockbuster Video have caused them to battle for survival.

In the fourth quarter, Movie Gallery reported a $129 million operating loss after seeing its sales plummet to $1.4 billion in 2009, down from $2 billion in 2008.

Two Downtown St. Louis Properties Sell Due to Foreclosure

blog@www.castlelaw.net (News Author)12786 — Thu, 11 Feb 2010 08:00:00 EST

Two former Pyramid Cos. properties in downtown St. Louis were sold on February 3 due to foreclosure.

The sole bidder for the One City Centre office tower was SCR Investments, led by Environmental Operations Inc. chief executive Stacy Hastie, for $12.7 million. Hastie as an individual was the lone bidder for the Arcade building for $9 million.

The St. Louis Development Corp. is working with SCR and Hastie on the rehab of the 25-story One City Centre building. Hastie called the purchase "a big step forward" for development plans.

The Missouri Development Finance Board approved a $5 million loan on February 2 for a $29 million overhaul of One City Centre.

Lewis, Rice & Fingersh signed a 12-year lease for 100,000 square feet of space at the 375,000-square-foot building with plans to move its 250 attorneys and staff there later in February.

A Cardinal Realty Group associate, Lina Galinurova, was in attendance at the auctions on behalf of a prospective California-based buyer for the Arcade. She wouldn't disclose the buyer's identity, but did say that the company would initiate talks to pursue ownership of the Arcade.

Plans by Pyramid Cos. to rehab One City Centre and convert the 15-story Arcade building fell apart in 2008 after the development company led by John Steffen closed.

Obama Calls for Change in Loan Modification Program

blog@www.castlelaw.net (News Author)12742 — Wed, 10 Feb 2010 08:00:00 EST

President Barack Obama's administration recently overhauled its struggling foreclosure avoidance program, saying that it would require homeowners seeking to ease their mortgage terms to document their financial situation before being granted a trial modification.

Previously, borrowers were able to have their interest rates lowered and the terms of their loans extended on a trial basis without providing pay stubs and other financial documents. Banks and other mortgage customer-service providers were supposed to collect that information during a three-month trial period, with the modification becoming permanent if the borrower made three lowered payments and submitted the required paperwork.

However, few permanent modifications were yielded by the program. Servicers say a significant number of borrowers failed to properly document their situations. Homeowners say banks were unreasonable and lost documents.

Between the time the program began in the spring of 2009 and the end of December, servicers extended nearly 1.2 million offers to modify mortgages on a trial basis. However, only 66,465 troubled home loans were permanently modified, according to the U.S. Treasury Department.

The new procedure, which loan servicers are to adopt by June 1, would provide troubled borrowers with what the Treasury Department called a "simple, standard package of documents" to complete in order for servicers to determine whether the borrowers qualify to receive a loan modification.

With that determination made in advance, any borrower who made three payments at the modified rate would automatically have the modification made permanent.

The purpose of the program was to provide billions of dollars in government subsidies to encourage lenders to forestall foreclosures.

In order to obtain said subsidies, servicers are required to cut interest rates, extend the terms of loans to 40 years, and suspend payments on part of the amount owed.

Car Dependency Linked to High Foreclosure Rates

blog@www.castlelaw.net (News Author)12660 — Fri, 05 Feb 2010 08:00:00 EST

According to a recent report by the Natural Resources Defense Council (NRDC), homeowners in car-dependent areas without transit options have a higher risk of foreclosure. The NRDC has called for mortgage underwriting standards to start taking so-called “location-efficiency” into account.

The report is focused on the impact of location efficiency, a concept NRDC and other groups pioneered in the 1990s, on mortgage performance in three key cities: Chicago, San Francisco, and Jacksonville, Florida. The report shows that vehicle ownership is key to predicting mortgage performance and suggest that mortgage underwriters, policymakers, and real estate developers should take it into account.

Transportation costs account for approximately 17 percent of the average American household’s income. The report discovered that if driving is your only choice, you have considerably less economic flexibility. Said flexibility could protect homeowners from foreclosure in rough times.

Foreclosures Decrease in Polk County

blog@www.castlelaw.net (News Author)12659 — Fri, 05 Feb 2010 08:00:00 EST

In 2009, the home foreclosure rate in Polk County saw an improvement over figures from 2008, according to information from the office of the Polk County Recorder. In 2008, one out of every 86 homes was foreclosed upon, but in 2009, one out of every 91 was foreclosed upon.

Polk County fared better than the national average, which saw and increase from one out of every 54 homes in 2008 to one out of every 45 homes in 2009, or 2.2. percent, according to information from RealtyTrac Inc. The state of Missouri also saw an improvement from one out of every 84 in 2008 to one out of every 93 in 2009. The figures for total housing units are based on data from the 2008 U.S. Census Bureau.

The value of homes foreclosed upon in Polk County in 2009 totaled $12.1 million, approximately $2.5 million less than the $14.6 million in 2008. The value in 2007 was approximately $15.4 million and included the $5.5 million foreclosure of Springhill Falls apartments, the largest foreclosure in Polk County history.

According to Recorder Carol Poindexter, the decrease in foreclosure activity is evident in the smaller number of documents handled by her office in 2009. She says there were 5,599 documents last year and since she began keeping track in 1994, there have only been two years with a lower number.

Reader's Digest Sells CompassLearning in Bankruptcy

blog@www.castlelaw.net (News Author)12658 — Fri, 05 Feb 2010 08:00:00 EST

According to Reader’s Digest Association Inc., the sale of its CompassLearning unity has received the approval of a bankruptcy judge and the publisher has reached an agreement with a pension group on claims that it may have forced the closing of its U.K. business.

Marlin Equity II LP won CompassLearning, which creates interactive teaching materials for schools and libraries, beating out four other bidders in an auction that took place on January 7. Marlin, which is run by El Segundo, California-based private equity firm Marlin Equity Partners, has agreed to pay $31.8 million, an increase from its initial offer of approximately $20.3 million in November.

According to Reader’s Digest spokesman William Adler, on January 12, the sale was approved by U.S. Bankruptcy Court Judge Robert Drain in White Plains, New York. Drain is scheduled to hold a January 15 hearing to consider confirming the Chappaqua, New York-based publisher’s reorganization plan to emerge from bankruptcy.

Under Reader’s Digest’s reorganization plan, the publisher’s $2.2. billion debt would be reduced by 75 percent to $550 million.

Reader’s Digest filed for Chapter 11 bankruptcy protection in August, citing a decrease in advertising spending and a high debt load incurred in its 2007 acquisition by Ripplewood Holdings LLC for $1.6 billion.

Illinois Auto Dealers Fight GM & Chrysler Bankruptcy Cutbacks

blog@www.castlelaw.net (News Author)12528 — Sat, 30 Jan 2010 08:00:00 EST

GM has been tallying profits and showing signs of new growth in the beginning of 2010. In addition, its cars have won several awards and it may well profit from the Toyota recalls of the last two months. However, following the auto company’s summer bankruptcy, in which the carmaker closed 12 auto factories and cut 20,000 jobs, GM is still facing issues with the hundreds of auto dealers that the company let go in 2009.

In Illinois alone, 107 car dealers are appealing the car company’s decision to close their outfits. Only one other state in the county has such high numbers of appeals filed.

The appeal proceedings will be handled by the American Arbitration Association. At this time, according to the Illinois Automobile Dealers Association, individual dealers are not yet discussing the appeals with the media. Many of the dealers remained opened, but have suffered without new car models coming in from GM and Chrysler. Other dealers closed their doors when dealer cutbacks were announced this summer.

The date of the car dealership appeals hearings have not yet been set.

General Motors filed for bankruptcy on June 1, 2009, and received roughly $50 billion in government stimulus funds to help them recover. The car company has staged a comeback since then, but is still facing a number of administrative woes.

Muzak's Bankruptcy Plan Approved

blog@www.castlelaw.net (News Author)12499 — Fri, 29 Jan 2010 08:00:00 EST

According to a January 12 statement from music and entertainment company Muzak Holdings LLC, the company’s bankruptcy reorganization plan received the approval of a U.S. judge, paving the way for the company to emerge from bankruptcy later in January.

Muzak, best known for providing background music in stores, hotels, and elevators, filed for bankruptcy protection in February 2009 in order to restructure maturing debt.

The plan allows for the company’s lenders to trade debt in the company for equity, reducing the company’s outstanding debt to $230 million. The company’s debt was more than double that amount when it filed for bankruptcy.

Also on January 12, the company’s $108.75 million senior secured exit financing facility from GE Capital, Silver Point Finance, and MFC Global Investment Management received the approval of a U.S. bankruptcy judge in Delaware.

The company expects to exit bankruptcy by the end of January.

The company’s roots trace back to the 1930s, when it sold re-recorded music for factories, elevators, and passenger ships. Muzak was owned by private equity fund ABRY Partners LLC when it filed for bankruptcy protection.

St. Louis Area Business Bankruptcies Skyrocket In 2009

blog@www.castlelaw.net (News Author)12479 — Fri, 29 Jan 2010 08:00:00 EST

While some signs point to a recovery economy and an end to the recession, other trends in St. Louis continue to worsen with no signs of recovery. In a new report release by Clayton, Missouri, accounting firm Hoffman Clark, it seems that St. Louis business bankruptcies are at their worst yet, with high number of bankruptcies in 2009 and shocking fourth quarter numbers that show the worst rate of business bankruptcies since the recession began in 2008.

All in all, the study reports that the rate of St. Louis area business bankruptcies has increased by 19 percent in comparison to the rate of business bankruptcies recorded in 2008. The accounting firm found that 398 St. Louis, Missouri, businesses filed for bankruptcy in 2009, compared with 334 bankruptcy filings in 2008.

A shocking 108 bankruptcy filings happened in the final fourth quarter of 2009, making it the worst three months of business bankruptcy filings in years. St. Louis bankruptcy rates rose 6 percent in the fourth quarter of 2009 from the third quarter of 2009 and 26 percent from the fourth quarter of 2008.

The numbers for this report were taken from the U.S. Bankruptcy Court for the Eastern District of Missouri with divisions covering St. Louis, Cape Girardeau and Hannibal, Mo.

While individual or personal bankruptcies were not included in this report, other studies have confirmed that personal St. Louis bankruptcies are at their highest point since the 2005 bankruptcy reform laws.

New Study: Women More Often Victims Of Predatory Loans

blog@www.castlelaw.net (News Author)12478 — Fri, 29 Jan 2010 08:00:00 EST

Predatory lending has led to major country-wide economic issues and left thousands of families on the brink of foreclosure and bankruptcy. While some research has shown that predatory lending took advantage of the poor and the uneducated, a new study has found that subprime loans and predatory mortgage lending victimizes women more often than men. Latina and black women were four to five times more likely to receive subprime loans in comparison to white men between 2005 and 2008.

In-depth research funded by The Nation Institute and conducted by National Institute of Computer-Assisted Reporting at the Missouri School of Journalism in Columbia, Missouri, has found that while many are still suffering from the effects of a predatory loan that they can’t afford payments on, the majority of those people are women. After crunching the number from Home Mortgage Disclosure Act data, researchers found that Women whose loan debt amounted to a smaller-than-average percentage of their income were more likely to get bad or dangerous loans in comparison to men who had similar financial histories.

Why would this be the case? Some think that perhaps mortgage brokers thought that they could pull subprime loans off more successfully with women. Other point out that minority women, single women, and elderly women were preyed on more than other groups. Now many women are facing bankruptcy and foreclosure, especially since women tend to concentrate most of their assets into their homes. Women now make up 25% of all homebuyers.

One Missouri Woman's Story Of Chapter 7 Bankruptcy

blog@www.castlelaw.net (News Author)12476 — Fri, 29 Jan 2010 08:00:00 EST

This week the St. Joseph, Missouri, News-Press covered some shocking Missouri bankruptcy statistic for 2009 and shared the story of one local woman’s struggle with credit card debt that ended in a petition for Chapter 7 liquidation bankruptcy.

The article tells the story of a young woman who because of the subject matter is going by the alias Angie. She is a single mom with a steady job and a solid credit score, but a high maximum on her credit cards makes her think it’s okay to spend a little extra and carry a balance. Soon, though, her life expenses began to pile up and she began spending more than she made. After she slowly spent her savings, she slowly began running up and maxing out four credit cars. Before she knew it, she was in debt $40,000 and had $700 monthly minimum payments.

Thousands of families find themselves in Angie’s position – single parents or families who simply spend a few hundred dollars a month more than they make can soon find themselves under a mountain of debt – and with quickly-rising interest rates into the 20s. Angie said she didn’t go crazy buying things she couldn’t afford, but that she simply bought an occasional item for herself or charged her children’s daycare costs.

Angie found that the best solution for her situation was filing for Chapter 7 bankruptcy in Missouri. She is now slowing rebuilding her credit with a credit card with a very low limit and is making sure to live within her means.

Japan Airlines to File Bankruptcy Soon

blog@www.castlelaw.net (News Author)12316 — Fri, 22 Jan 2010 08:00:00 EST

Japan Airlines, the largest air carrier in Asia, is prepared to file for bankruptcy protection as early as January 19, according to media reports out of Japan.

The move, which is similar to a Chapter 11 filing in the U.S., would be one of the largest corporate failures in the history of Japan. Under provision of the law, JAL shares would be removed from the Tokyo Stock Exchange. The government-backed Enterprise Turnaround Initiative Corp. would then officially announce a restructuring plan for the airline involving pre-packaged court-backed rehabilitation, including a $3.3 billion injection from the fund.

Delta Air Lines and American Airlines are believed to be two major U.S. companies in the running to invest in the troubled Japanese airline.

Yellow Pages Publisher Makes Final Push to Emerge from Bankruptcy

blog@www.castlelaw.net (News Author)12284 — Thu, 21 Jan 2010 08:00:00 EST

Yellow pages publisher R.H. Donnelly has cleared the final obstacle on its path to emerge from bankruptcy by winning court approval for its reorganization plan.

On January 12, the plan received the approval of U.S. Bankruptcy Judge Kevin Gross at a hearing in Delaware. The plan also has the overwhelming support of creditors.

David Swanson, the CEO of the Cary, North Carolina-based company, believes the decision will allow them to be able to complete their restructuring within the next few weeks. He believes the company will emerge from bankruptcy protection as a stronger business “with a more management capital structure and a stronger financial foundation.”

Most of the plan was negotiated with creditors prior to Donnelly filing for Chapter 11 bankruptcy protection in May 2009.

The plan will reduce the company’s debt by $6.4 billion, in turn reducing its annual interest expenses by $500 million. Creditors to which the company owes approximately $6 billion in unsecured debt will receive virtually 100 percent ownership of the business, wiping out the last vestiges of shareholder value. The unsecured creditors will also receive approximately $300 million in debt.

Donnelley publishes directories in 28 states.

Several Loan Modification Scammers Indicted in San Diego

blog@www.castlelaw.net (News Author)12263 — Tue, 19 Jan 2010 08:00:00 EST

A group of four people, including a convicted felon and two real estate brokers, has been indicted on charges of running an investment scam preying on Filipinos in San Diego, California.

The group, which initially was investigated by The San Diego Union-Tribune in March 2009, is faced with more than 54 charges, including foreclosure consultant fraud, grand theft, and securities fraud. The group allegedly persuaded families to transfer ownership of their homes to two trusts, with the promise that the group would help them modify and lower their mortgages.

The defendants are 52-year-old Edmundo Rubi, 59-year-old Joseph Encarnacion, 51-year-old Ben Hebron, and 53-year-old Gloria Hebron.

The FBI and the San Diego County District Attorney’s Office conducted the investigation. The grand jury handed down the indictment on December 21, but it was sealed until January 11.

St. Louis Business' Bankruptcy Filings See Big Increase

blog@www.castlelaw.net (News Author)12262 — Tue, 19 Jan 2010 08:00:00 EST

According to a recent study, the number of businesses in the St. Louis area that have filed for bankruptcy saw an increase of 19 percent in 2009.

In a report released by Hoffman Clark, an accounting firm out of Clayton, Missouri, on January 11, 398 St. Louis businesses filed for bankruptcy in the year ending December 31. That number is an increase from 334 in 2008 and 176 in 2007.

The number of businesses that filed for bankruptcy in the St. Louis area in the fourth quarter of 2009 was 108, the highest quarterly number since the recession began. That represents an increase of six percent from the third quarter of 2009 and 26 percent from the same quarter in 2008.

The Hoffman Clark Business Bankruptcy Trends Report focuses on bankruptcy filings involving business debts. Non-business bankruptcy filings, also called personal or consumer bankruptcy filings, are not included in the report.

A Sinkhole In Battlefield, MO – Family Declares Bankruptcy

blog@www.castlelaw.net (News Author)12246 — Mon, 18 Jan 2010 08:00:00 EST

Many people have the misconception that those who file for bankruptcy in Missouri simply don’t understand how to manage their money or simply spend more than they make. However, more often than not bankruptcy is used as a solution to an unforeseeable emergency. This was certainly the case for the White family, who filed for bankruptcy in Battlefield, Missouri, after their house literally sank into the ground.

Kasey and Kandice White were enjoying their new home in Greene County when their five-year-old son Danny discovered an enormous hole near the foundation. The sinkhole meant that their home was built on a rock joint – common in the Ozarks. Although the family could fix the hole for tens of thousands of dollars, the home’s value would plummet. And although the home had house insurance, sinkholes are not covered because they are considered an act of god.

In the end the best option for the Whites was to walk away from their home and the $50,000 of equity they had in it. The family declared bankruptcy and got a fresh start in a new home built on a solid foundation.

Your home is your biggest asset – and if it is irreparably damaged by an unforeseeable cause not covered by your home insurance, you could lose almost everything you have in one fell swoop. In times like these, bankruptcy may be the best option for you and your family. Especially if you are suffering from other financial strains – the Whites also had an unexpected surgery and a job loss – bankruptcy could be the answer for you.

Brown's Chicken & Pasta Inc. Files for Chapter 11 Bankruptcy

blog@www.castlelaw.net (News Author)12181 — Wed, 13 Jan 2010 08:00:00 EST

A chain of chicken restaurants that made headlines across the U.S. in 1993 when seven employees at one of its stores in suburban Chicago were killed has filed for Chapter 11 bankruptcy protection.

On December 29, Brown’s Chicken & Pasta Inc. filed for bankruptcy, two months after the company was ordered by a DuPage County judge to pay more than $800,000 to a former vice president and minority shareholder who filed suit for wrongful termination.

According to the company’s attorney, Brown’s was unable to pay the judgment. He said $300,000 of that amount was due on the day the company filed. He says it would have made them “insolvent.”

The company’s filing listed assets between $100,000 and $500,000, liabilities of as much as $10 million, and 50 to 99 creditors.

The filing is the latest in a series of setbacks for the company. The franchise once had as many as 150 stores, but that number has declined to approximately three dozen since the murder of seven employees at one of its restaurants in 1993. Their bodies were discovered in a walk-in cooler.

The company’s attorney said the incident and the “constant barrage” of negative publicity had a significant impact on the company. The story was front page news across the nation for several days and in the Chicago area for several months. The story continued making headlines for years due to the hunt for the suspects, the arrest of two men years later, and their convictions on murder charges, the first years ago and the second two months ago.

The company successfully defended a number of lawsuits in the years following the murders, but the money and time spent on the suits left an impact on the company.

Brown’s plans to keep its restaurants, all but three of which are owned by franchisees, open as the company restructures. The company’s attorney says the three stores the company owns are to be closed or sold within the next 30 days.

Florida Courts Hope to See an End to the Foreclosure Crisis

blog@www.castlelaw.net (News Author)12180 — Wed, 13 Jan 2010 08:00:00 EST

The chief judge of the court Pinellas-Pasco court system in Florida is hoping 2010 will bring relief for judges, consumers, and lenders caught in the growing morass of the worst foreclosure crisis in the U.S.

According to Pinellas-Pasco Circuit Court Chief Judge J. Thomas McGrady, the caseload is nearly 2,000 foreclosure cases per judge. And with 2009 coming to an end, McGrady says the cases continue to stack up twice as fast as judges can resolve them. The workload for judges handling all kinds of civil cases has nearly tripled because of the rapidly increasing number of foreclosures, which has roughly doubled each year for the past three years or so.

McGrady says that if you add in foreclosures to other civil matters, judges in Pinellas and Pasco are struggling to keep up with their dockets and are falling behind in many cases. He says the total now reaches more than 3,400 cases per judge.

Recently, the Supreme Court of Florida offered one solution in a court order essentially calling for mandatory mediation for homesteaded properties before the legal process of foreclosures can begin. Said order establishes a system of mediation management and shifts the cost burden to lenders to encourage homeowners to renegotiate loans instead of simply giving up and walking away.

As of now, McGrady says in Pinellas and Pasco counties alone, there are more than 23,000 open foreclosures. The Supreme Court estimates the number in Florida to be more than 456,000, placing the state at the epicenter of the nation’s foreclosure crisis.

McGrady says the situation will only grow worse until the foreclosure situation is resolved.

Foxland Harbor Marina Files for Bankruptcy to Prevent Foreclosure

blog@www.castlelaw.net (News Author)12089 — Wed, 06 Jan 2010 08:00:00 EST

An entity owning land off Old Hickory Lake in Gallatin, Tennessee planned for a marina has filed for bankruptcy protection in order to stave off foreclosure, according to a spokesman.

On the morning of December 28, Foxland Harbor Marina LLC filed for bankruptcy in the U.S. Bankruptcy Court in Nashville in advance of the foreclosure sale that lender American Security Bank & Trust had planned.

Included in the filing is an estimate of $1 million to $10 million in assets and liabilities.

Foxland is seeking approval from the Army Corps of Engineers to construct a full-service marina at Station Camp Creek.

American Security is also a lender to another company that filed for bankruptcy in December: Fairvue Club Properties, the owner of the Club at Fairvue at Fairvue Plantation.

US Fidelis Headquarters to Be Sold in Foreclosure

blog@www.castlelaw.net (News Author)12088 — Wed, 06 Jan 2010 08:00:00 EST

One Wentzville, Missouri-based company will not remember 2009 as a banner year.

US Fidelis, which had more than 1,000 employees at the beginning of 2009, announced hundreds of layoffs earlier in December and recently said that it had stopped selling extended-service contracts.

Now word has come that the company’s headquarters will be sold in a foreclosure auction.

Frontenac Bank is publicizing the January 14 trustee’s sale. They say the brothers who began the company, Darian and Cory Atkinson, defaulted on their payments.

US Fidelis is also faced with legal scrutiny due to consumer groups and government regulars accusing the company of selling expensive after-market coverage offering limited value. The state of Missouri is also investigating claims of deceptive practices.

In spite of all the bad news, the company says the sale will not affect customer service operations.

Tiger Woods' Sponsor to File Chapter 11 Bankruptcy

blog@www.castlelaw.net (News Author)12087 — Wed, 06 Jan 2010 08:00:00 EST

TLC Vision Corp., the eye-care service company that sponsors pro golfer Tiger Woods, has filed for Chapter 11 bankruptcy protection in order to restructure its debt.

In the documents the company filed in U.S. Bankruptcy Court in Wilmington, Delaware on December 21, the company listed assets and debt of $100 million to $500 million. Affiliates TLC Vision (USA) Corp. and TLC Management Services Inc. also sought bankruptcy protection.

According to TLC Vision, it reached an agreement to restructure debt with some senior lenders prior to the filing. In order to expedite the process, a pre-arrange plan was included. The plan provides for conversion of some debt to 100 percent of new equity of TLC Vision (USA), which will emerge as a private company, according to TLC.

A spokesman for the company, Stephen Phillips, said that the company’s relationship with Tiger Woods would continue with no changes.

The Chesterfield, Missouri-based company seeks approval of $15 million in debtor-in-possession financing, authority to use of cash collateral, permission to pay critical vendors, and employee wages and benefits.

TLC Vision operates laser vision-correction centers in the U.S. and Canada. No other affiliates including TLC Laser Eye Centers are involved in the filing.

Maker of "Equal" Files Gets Approved for Chapter 11 Bankruptcy

blog@www.castlelaw.net (News Author)12026 — Thu, 31 Dec 2009 08:00:00 EST

On December 16, Chicago-based Merisant Worldwide Inc., the manufacturer of the artificial sweetener Equal, announced that a court had approved its reorganization plan under Chapter 11 bankruptcy.

The company is predicting that it could emerge from bankruptcy as soon as January 8, nearly a year after the company filed for Chapter 11, citing declining sales, a large load of debt, and the global credit crisis as factors.

Under Merisant’s plan to reorganize, the company would reduce its debt from $567 million to $147 million, dropping its annual cash interest expense from $36 million to $11 million. As a result of the restructuring, Wayzata Investment Partners, a private equity firm, will become Merisant’s majority and controlling shareholder.

Merisant had previously been largely owned by Pegasus Capital Advisors, another private equity firm.

Employee Bonuses Get Approved in Lehman Brothers Bankruptcy

blog@www.castlelaw.net (News Author)12015 — Wed, 30 Dec 2009 08:00:00 EST

A bankruptcy judge has approved the plan of Lehman Brothers Holdings Inc. to pay $50 million in bonuses to employees handling derivatives contracts. The judge said the payments provide essential incentives to employees with “unique skills.”

In November, Lehman, the investment bank liquidating in bankruptcy, asked U.S. Bankruptcy Judge James Peck in New York for permission to pay the bonuses to approximately 230 full-time employees unwinding the contracts. On December 16, the judge sanctioned the payments as bankers, under attack after two years of failures and bailouts, risk more public ire by awarding year-end bonuses, according to a Bloomberg National Poll earlier in December.

In a November 25 filing, Lehman told Peck that the derivatives team had brought in more than $8 billion in cash and settled 17 percent of the contracts while under bankruptcy protection. The filing said that a bonus pool “designed to motivate and reward employees” in the group would help maximize the value of the remaining contracts.

Also during the court hearing, the judge informed Barclays Plc it could not have documents it sought from Lehman creditors and the trustee for Lehman’s brokerage, according to a spokesman for the trustee who declined to be named.

In September 2008, Lehman filed the largest U.S. bankruptcy with assets of $639 billion. Lehman’s creditors include UBS AG, the New York Giants, Abu Dhabi Investment Authority, and individual bondholders. The creditors have filed $824 billion in claims against the company.

New York Governor Takes Steps to Protect Homeowners from Foreclosure

blog@www.castlelaw.net (News Author)11996 — Tue, 29 Dec 2009 08:00:00 EST

On December 15, New York Governor David Paterson signed into law stronger foreclosure regulations for the intended purpose of protecting New Yorkers from losing their homes, such as requiring better notice to homeowners faced with foreclosure and mandating settlement hearings with banks.

The law expands a package of regulations adopted in 2008 that mostly dealt with homeowners caught in the sub-prime mortgage crisis. The new laws require that banks provide a 90-day pre-foreclosure notice on all home loans, not just sub-prime loans.

Paterson and state lawmakers say the goal is to allow homeowners additional time to work with lenders in order to prevent foreclosures. Another regulation will expand to all homeowners mandatory settlement conferences with their lender, not just borrowers with sub-prime loans.

During the first three quarters of 2009, there were 39,923 foreclosure filings in New York, a decrease of 11 percent from the same period in 2008.

In spite of the decline, however, Paterson says that the new law was necessary in order to ensure that all homeowners were protected, not just homeowners who undertook risky loans.

According to Josh Zinner, co-director of the Manhattan-based Neighborhood Economic Development Advocacy Project, New York is the first state to require settlement conferences for all pending foreclosures.

Other components of the law include:

-Requiring lenders who serve a 90-day foreclosure notice on a homeowner to file with the state Banking Department within three days, allowing the state to provide assistance to distressed homeowners.

-Establishing protections for tenants in foreclosed properties by requiring that they receive written notice of a change in ownership and be permitted to remain in their home for the remainder of their lease term or a period of 90 days, whichever is longest.

-Enhance consumer protections to prevent homeowners from falling prey to scams and prevent brokers who perform distressed property consulting services from accepting upfront fees.

Maryland Women Get Restitution in Foreclosure Rescue Scheme

blog@www.castlelaw.net (News Author)11955 — Mon, 28 Dec 2009 08:00:00 EST

As part of a settlement, two mortgage firms based out of Owings Mills, Maryland accused of running a “foreclosure rescue scheme” have agreed to pay $110,000 in cash restitution as part of a settlement that saved the homes of two elderly women in Ellicott City, Maryland, one of whom has died since becoming a victim.

In 2006, the two women fell behind on their mortgage payments due to poor health and related bills. They responded to a refinancing offer contained in packets labeled “Your Best Hope has just arrived.” However, instead of the rescue from the brink of foreclosure they were promised, the women learned that they had unwittingly signed away the titles to their homes and were facing eviction.

At that point, Howard County, Maryland consumer protection officials stepped in by filing a lawsuit against Stewart D. Sachs, president of Bay Capital Corp., which sent the letters, and Heavyweight Title Co. They also obtained a temporary restraining order preventing the eviction of 63-year-old Betty J. Bullock, who was legally blind at the time she signed the mortgage papers, and 68-year-old Griselda Mason. In October 2008, Bullock died due to a stroke.
Both women had been told they could get out of debt in two years, but were then charged rents so high they were unable to afford staying in their homes.

On December 15, county officials announced that a final settlement had been reached. The agreement restored ownership of the homes to Mason and Bullock’s granddaughter, who was living with Bullock. Sachs and Heavyweight agreed to no longer conduct any commercial lending in Howard County for a three year period and never use “unfair deceptive trade practices” again, according to officials.

Additionally, Sachs must pay $10,000 in investigation costs and restitutions and Heavyweight must pay $100,000 to the victims.

Chicago Business Bankruptcies Increase By One Third In Third Quarter

blog@www.castlelaw.net (News Author)11884 — Thu, 24 Dec 2009 08:00:00 EST

As 2009 draws to a close, many consumers and business owners are looking for the signs that the recession is over – and signs that it may continue to affect our lives, our jobs, and our finances. While housing purchases are on the rise and the foreclosure rate is dropping, others look at the number of bankruptcies around the country and wonder if we are exiting our time of crisis.

For example, as personal bankruptcies skyrocketed this year, Chicago-area business bankruptcies also continue to increase. According to the Chicago Tribune (which has faced its own recent bankruptcy issues), the number of businesses filing for bankruptcy in Chicago, Illinois, increased by 36 percent this quarter compared to the same quarter last year. The Administrative Office of the U.S. Courts reported that Northern Illinois recorded 14,529 bankruptcies in the last three months, roughly 500 business bankruptcies and 14,000 personal bankruptcies. These numbers rival the high numbers of bankruptcies filed in 2005 before the bankruptcy laws were changed.

In the last three months nationally, business bankruptcy rates have risen 33 percent. While the November 2009 numbers are down 18 percent from October 2009, they are up 12 percent in comparison to November 2008. All in all, economic experts predict that 1.4 million Americans will declare bankruptcy this year.

The high numbers of bankrupt individuals and business is being tied to high unemployment rates, a poor housing market, weak consumer confidence, and the recent difficulty in procuring credit.

Missouri's TLC Vision Corp. Seeks Bankruptcy Protection

blog@www.castlelaw.net (News Author)11862 — Wed, 23 Dec 2009 08:00:00 EST

One of Tiger Woods’ sponsors, TLC Vision Corp., has filed for reorganization bankruptcy – a move which will allow lenders to own the company and take current shareholders out of the picture. The company, which has continued to support Tiger Woods, is an eye surgery outfit that is based out of Chesterfield, Missouri.

The company, who has dealt with financial difficulties for over a year, is seeking approval of $15 million in debtor-in-possession financing and permission to pay employee wages, employee benefits, and key vendors. The company will also pay certain secured and unsecured creditors. The company’s Chapter 11 bankrupty filing announced between $100 and $500 million in assets and between $100 and $500 million in debts.

A company spokesperson said that despite the bankruptcy reorganization and other issues, their organization’s relationship with Tiger Woods had not changed. The company has continued to operate during the bankruptcy proceedings – care for patients will continue and employees would not see changes.

"We expect to emerge swiftly from Chapter 11 with a stronger balance sheet and able to better capitalize on our industry leadership position," Chief Operating Officer of TLC Vision Jim Tiffany told the media.

Since laser surgery vision correction is not normally covered by health insurance, laser vision companies have seen record losses during the recent recession. TLC Vision share trades have been very low over the last week, with shares hovering between 4 and 15 cents.

Attorney General Chris Koster Holds Florida Company Responsible in Mortgage Scam

blog@www.castlelaw.net (News Author)11857 — Wed, 23 Dec 2009 08:00:00 EST

According to Missouri Attorney General Chris Koster, he is filing suit against a Florida company that took money from distressed Missouri homeowners, but failed to provide and meaningful mortgage-modification service. Koster is joined by the Federal Trade Commission and the State of Iowa.

Since Koster began his campaign against mortgage fraud in April, this is the eighth lawsuit he has filed against a fraudulent mortgage business.

Koster said his office has “instituted a zero tolerance policy for any mortgage modification firm that preys on and cheats desperate homeowners.”

According to Koster, First Universal Lending, LLC, is based out of Palm Beach Gardens, Florida, but transacts business throughout Missouri. He says that the company markets itself as providing services for homeowners who are struggling to pay their mortgages or are faced with foreclosure and promising them lower house payments or interest rates. However, he said they appear to do little or nothing for the majority of its customers.

Additionally, he says, representatives from the company have told some clients to stop making payments on their mortgages while the modifications process was proceeding, which harms the customers’ credit rating and results in higher late fees, penalties, and interest payments and increases the likelihood of foreclosure.

Koster says that the business requires an up-front fee before providing services, which is illegal for mortgage modification companies according to Missouri law.

Illinois Foreclosures Decreasel; Missouri Isn't as Likely

blog@www.castlelaw.net (News Author)11856 — Wed, 23 Dec 2009 08:00:00 EST

According to new data from Irvine, California-based RealtyTrac, the number of St. Louis-area properties at some point in the foreclosure process increased 15 percent from October to November and increased 10 percent from November 2008.

A total of 2,040 properties, or one out of every 604 homes, were in the foreclosure process in November, according to the report, which was released on December 10.

The metro area examined by the report included the City of St. Louis and the surrounding 16 counties in Missouri and Illinois.

Foreclosure activity in Illinois saw a decrease of nearly 18 percent from a record high in October, but the 16,422 properties in foreclosure in November was an increase of nearly 108 percent from November 2008 and the third-highest nationwide.

In Missouri, foreclosure filings held steady at 3,217 in November in comparison to October, but that was still an increase of 11.5 percent from November 2008.

Across the U.S., foreclosure filings were reported on 306,627 properties during November, which was a decrease of nearly eight percent from October. However, that number was still an increase of 18 percent from November 2008.

According to RealtyTrac chief executive James Saccacio, November was the fourth consecutive month in which U.S. foreclosure activity declined after reaching an all-time high in July.

Pace of Home Foreclosures Continues Decline in Missouri and Kansas

blog@www.castlelaw.net (News Author)11855 — Wed, 23 Dec 2009 08:00:00 EST

According to the latest market report from RealtyTrac, the pace of home foreclosures in Kansas and Missouri continued to decline during the month of November.

According to the report from the California-based institute, foreclosure actions in Kansas saw a decrease of 5.49 percent from October to November. The state reported a total of 878 foreclosure proceedings in November, down 0.03 percent. The report said the state ranks 37th nationwide.

The report said that Missouri reported a total of 3,217 proceedings during the month of November, which ranked the state 27th nationwide.

The report also said that the foreclosure rate in Kansas for November was a decrease of 24 percent from November 2008. In Missouri, the rate had decreased 11.5 percent from November 2008.

Across the U.S., November was the fourth straight month in which the foreclosure rate declined after hitting a record high in July, according to the report. Foreclosure filings nationwide for November decreased eight percent from October, but were still an increase from November 2008.

How Could The Medical Bankruptcy Fairness Act Help?

blog@www.castlelaw.net (News Author)11813 — Mon, 21 Dec 2009 08:00:00 EST

Currently, the Medical Bankruptcy Fairness Act is an amendment to the health care bill and could soon be a stand-alone bill. But what would this act mean for those facing financial difficulty due to medical bills, and what would this act mean for taxpayers?

The Medical Bankruptcy Fairness Act would make it somewhat easier for families facing bankruptcy because of a medical emergency to go through the bankruptcy process and return to their lives. The act has come into the spotlight after a recent study that appeared in The American Journal of Medicine revealed that 62 percent of bankruptcies involve medical bills and that even families with thorough health care coverage can go bankruptcy during a medical emergency because of copays, premiums, deductibles, lost wages, and other related reasons.

Under the new act, those declaring bankruptcy because of a medical emergency would not have to attend the same mandatory credit counseling sessions that others must pay for – since the sessions are meant for those who do not have a satisfactory understanding of finances, they are not geared for and are sometime insensitive toward those who have declared bankruptcy because of a sick loved one. The act would also make the process easier, give the filers greater flexibility and give filers a better chance of keeping their home.

In theory, the new act would not cost the taxpayers anything – it would simply create a slightly different bankruptcy process for those who have survived medical emergencies, but who have not survived financially intact.

Popstar Shakira Learned Life Lesson From Family Bankruptcy

blog@www.castlelaw.net (News Author)11726 — Wed, 16 Dec 2009 08:00:00 EST

Though she is a millionaire world music entertainer now, Shakira grew up surrounded with poverty and in a home where her parents decided to declare bankruptcy. Now Shakira looks back on the bankruptcy with thankfulness.

Though many know Shakira for her top-of-the-chart hit songs and clear voice, the Columbian pop sensation is also known for her philanthropy. Just months after she became a world-famous performer and singer, Shakira began the Barefoot Foundation, which works to educate impoverished Columbian children receive an education. Currently, she also works as a UNICEF goodwill ambassador.

However, the musical artist was not always in the position to help. When she was eight years old, her parents declared bankruptcy and sold most of what they had in order to clear their debts, including the furniture and air conditioning. When Shakira became visibly upset, her parents took her to a public park, where real poverty existed – children without food, families, appropriate clothing, or roofs over their heads. It was then that she understood that although her family was struggling, they were not at rock bottom.

Today, Shakira’s lesson about bankruptcy and poverty has turned her into an adult concerned with education and schooling for all children. She believes that education does not only help communities but also decreases gang violence and increases equality between the sexes. Shakira herself is perusing her dream of a college education at the University of Southern California.

Home Foreclosures Decrease for Missouri and Kansas Overall

blog@www.castlelaw.net (News Author)11716 — Wed, 16 Dec 2009 08:00:00 EST

According to the latest market report from RealtyTrac, the pace of home foreclosures in Kansas and Missouri continued to decline during the month of November.

The report said that Missouri reported a total of 3,217 proceedings during the month of November, which ranked the state 27th nationwide.

The report also said that the foreclosure rate in Kansas for November was a decrease of 24 percent from November 2008. In Missouri, the rate had decreased 11.5 percent from November 2008.

Shakira Claims Bankruptcy As Part of Her Success

blog@www.castlelaw.net (News Author)11715 — Wed, 16 Dec 2009 08:00:00 EST

Colombian pop star Shakira, whose hit single “Hips Don’t Lie” is the most played record in American radio history, says she became a musical sensation and global philanthropist due to her family filing for bankruptcy when she was 8-years-old.

At the age of 18, Shakira founded the Barefoot Foundation, a charity to aid poor children in her native Colombia receive an education. She later expanded her reach to become a UNICEF goodwill ambassador.

And all of that began when she had the rug pulled out from under her as a child in Barranquilla, Colombia.

In a recent interview with CNN, Shakira said she vividly recalled the day “which I entered our apartment and my dad had sold all the furniture we had and the air-conditioning. We lost both our cars.” She said she was “very upset.”

“I couldn't believe my eyes, I couldn't believe how my parents allowed such a failure in business,” she said.

Shakira said because she was struggling to embrace the bankruptcy, her parents took her to the park, where she saw “many kids who were orphans and barefoot and sniffing glue.” She said her parents wanted “to show me another reality that was much worse than mine to make me gain perspective on things.”

The Grammy Award-winning singer said that it was that visit to the park that changed her life. She said she made herself a promise that day to “someday succeed to vindicate my parents’ social and economic position.” But she said she also wanted to do something about children like the ones she saw that day.

Shakira, who is a singer-songwriter, musician, producer, dancer, and philanthropist, described herself as being “obsessed” with child education and its contribution to national and global security.

Shakira, who has sold more than 50 million albums worldwide, said that she believes education “not only boosts economic growth, but also guarantees national and global security.

She described education as being “without a doubt” the best strategy for fighting poverty.

Foreclosure is Next for Family After Their "Extreme Makeover"

blog@www.castlelaw.net (News Author)11714 — Wed, 16 Dec 2009 08:00:00 EST

The team from the popular ABC reality series “Extreme Makeover: Home Edition” might provide worthy families with a new home, but yet another family who appeared on the show has learned that they don’t guarantee you’ll keep that new home forever.

Five years ago, the Wofford family of Encinitas, California received their new home. However, they now say that after struggling to pay their bills for two years, they’re now faced with foreclosure. Dr. Brian Wofford, a widower and father of eight, said that many people believe that you get the mortgage when you get the house, but that isn’t the case.

The Woffords are not the first family to appear on the show that has faced serious financial troubles after their home makeover. Last year, the Harper family of Atlanta, who received the biggest house to date on the show, along with the money to pay taxes on it for 25 years, faced foreclosure after taking out an ill-advised $450,000 loan using the house as equity. At least four other families featured on the show have either had to sell or lose the homes they received. ABC may be considering changing the rules to the show in order to prevent future disasters.

There is still hope for the Wofford family. Their bank, OneWest, has promised them loan modification papers. But if they don’t go through, the bank will auction off the house.

Arcade Building Downtown St. Louis Faces Foreclosure

blog@www.castlelaw.net (News Author)11713 — Wed, 16 Dec 2009 08:00:00 EST

According to media reports, a foreclosure sale for the Arcade building in downtown St. Louis has been scheduled for December 31.

Deputy Mayor for Development Barbara Geisman called the planned sale “a step toward getting the property back into circulation and get it redeveloped.”

A plan by Pyramid Cos. to convert the 15-story building into condominiums fell apart when the development company led by John Steffen shut down in April 2008. Pyramid, through an affiliate called Arcade Owner Inc., is still the owner of the building, one of several commercial properties Pyramid owns that have yet to be transferred to successor owners.

The Arcade project’s lender was Bank of America.

St. Louis’ Land Clearance for Redevelopment Authority approved a resolution in October that approved a resolution to declare the historic building blighted and to authorize 10-year tax abatement and the search for a redeveloper for the half-million-square-foot building.

At one time, the Arcade housed dozens of jewelers and other retailers, but has been shuttered for several years. Many of the windows on the building are either boarded up or covered in tattered plastic.

Business Bankruptcies In St. Louis Soar In Third Quarter Of 2009

blog@www.castlelaw.net (News Author)11702 — Tue, 15 Dec 2009 08:00:00 EST

According to the St. Louis Business Journal, the end of the recession has not meant the end of business bankruptcies in Missouri or St. Louis. Just as the rate of personal bankruptcies in Missouri rose in the third quarter and for the year, local businesses are following the same trend.

Hoffman Clark, a Clayton, Missouri, accounting firm has released a new report on the number of St. Louis business bankruptcies – a report that says in the last year 378 St. Louis, Missouri, businesses declared bankruptcy. This is an increase of 19 percent over the number of bankruptcies recorded in 2008. It is an increase of 250 percent from the number of business bankruptcies in 2007, before the recent economic recession began.

Petitions for bankruptcies by businesses reached 104 in the third quarter. This is an increase of 16 percent over the number of bankruptcies filed in St. Louis by businesses in the same quarter of 2008. In comparison to the same quarter of 2007, bankruptcy filings for St. Louis businesses were two and a half times higher. The report does note, however, that the number of business bankruptcies declined in the third quarter in comparison to the second quarter of 2009 – a trend that may mark the end of the worst of the recession.

The data used in the report was taken from the U.S. Bankruptcy Court for the Eastern District of Missouri, which mostly covered St. Louis and the surrounding area.

Borders May Face Bankruptcy

blog@www.castlelaw.net (News Author)11659 — Wed, 09 Dec 2009 08:00:00 EST

In the wake of British chain WHSmith backing out of a deal with Borders, the U.S. megastore bookseller is desperately seeking to fight off bankruptcy and Chapter 7 liquidation.

Some don’t believe WHSmith being involved in the bidding made sense to begin with, as Borders is a bookseller and WHSmith is more of a news agency.

The situation with Borders could be seen as similar to Linens ‘N’ Things, another potentially viable company that was sunk by leverage in an overpriced equity deal. They ran into funding problems right as the credit crunch struck. Starved for capital, they were liquidated.

According to a report in The Telegraph, Borders is believed to be holding discussions with groups including HMV as the threat of collapse draws nearer.

In July, Channel 4 chairman Luke Johnson’s Risk Capital Partners purchased Borders in a management buyout backed by private equity firm Valco.

But competition from supermarkets and the continued growth of online retailers as the recession continues reducing consumer spending has hit Borders. The company also has suffered from the tightening in the credit insurance market, which has made it difficult to obtain stock from suppliers.

The company’s management is now uncertain that it does not have enough cash to trade successfully during the busy Christmas period.

Florida Has Highest Rate of Foreclosure

blog@www.castlelaw.net (News Author)11658 — Wed, 09 Dec 2009 08:00:00 EST

Being in first place isn’t always a good thing. For example, Florida currently holds the distinction of being the state with the highest rate of foreclosures in the U.S.

According to a report in The Palm Beach Post, nearly one out of every five home loans in the state was delinquent in payments by 90 days or more, or was somewhere in the process of foreclosure during the most recent quarter.

Florida has nearly 3.5 million outstanding loans across the state and more than 13 percent of those are in trouble. This type of economic behavior does not bode well for a recovery. It also indicates that another large group of foreclosed homes is soon to crash into the real estate market with a resounding thud.

This somewhat alarming statistic is not helped by another problem: Florida’s 11.2 percent unemployment rate. Experts are not expecting employment to alleviate before the second quarter of 2010, by which time projections show the rate having risen to 11.4 percent.

Florida’s foreclosure numbers may seem high, but according to the Mortgage Banker’s Association, nearly one out of every seven loans in the U.S. is in foreclosure, an increase from one out of every 10 at the beginning of 2009.

Nevada, California, and Arizona closely follow Florida in foreclosure rate. Combine, the states are responsible for 43 percent of the new crop of foreclosures due to hit the market.

Credit Card Delinquencies Decrease According to TransUnion

blog@www.castlelaw.net (News Author)11657 — Wed, 09 Dec 2009 08:00:00 EST

According to an analysis by TransUnion, one of the three U.S. credit bureaus, credit card delinquencies in the third quarter saw a decrease of six percent in comparison to the previous quarter.

The highest rates of delinquency were seen in Nevada (1.98 percent), Florida (1.47 percent), and Arizona (1.35 percent). Those three states are also among the four states with the highest rates of foreclosure. Adding in California, the four states had 43 percent of all foreclosures started in the third quarter, according to the Mortgage Bankers Association.

TransUnion said that the credit card delinquency rate, borrowers 90 days or more delinquent on one or more of their bank-issued credit cards, across the U.S. saw a decrease to 1.10 percent in the third quarter of 2009, which was a decrease of 5.98 percent from the previous quarter. In the year-to-year comparison, however, credit card delinquencies remained flat from 1.09 percent in the third quarter of 2008.

Average credit card borrower debt, the total owed on all bank-issued credit cards for an individual, slightly decreased across the U.S. 1.87 percent to $5,612 from $5,719 in the previous quarter and decreased 1.71 percent from $5,710 in the third quarter of 2008.

More Renters Left With Foreclosed Properties

blog@www.castlelaw.net (News Author)11583 — Thu, 03 Dec 2009 08:00:00 EST

A new wave of foreclosures could harm people who may have never even taken out a mortgage: renters. In cities like New York, Chicago, and Los Angeles, where many investors are carrying upside-down mortgages on large rental buildings, some tenants are seeing their homes fall apart along with the financing.

In the first three quarters of 2009, 475 foreclosure proceedings were begun against multifamily rental or cooperative homes in Washington D.C., according to NeighborhoodInfo DC, a partnership between the Urban Institute and the D.C. Local Initiatives Support Corp. That figure already eclipses the 458 foreclosures for all of 2008.

In Cook County in Illinois, 328 multifamily rental buildings were in foreclosure by the second quarter of 2009, in comparison to 185 in 2008, according to a study by the Institute for Housing Studies at DePaul University, which has not yet been released.

In Los Angeles, foreclosures for buildings with five or more units totaled 78, encompassing 1,344 units, within the first three quarters of the year, in comparison to 49 buildings and 432 units last year during the same time period and 13 buildings and 239 units in 2007.

New York housing analysts estimate the number of apartment units in the city that are at risk of default due to upside-down loans (property is worth less than is owed on the loan) to be between 50,000 and 100,000.

During the first nine months of 2009, Fannie Mae foreclosed upon 74 multifamily properties, in comparison to 25 during the same period in 2008.

The pattern has also showed up in smaller cities such as Lexington, North Carolina and Des Moines, Iowa.

The impact upon tenants is uneven. According to officials in New York City, the owners of the vast majority of buildings in foreclosure are likely to maintain decent standards of living. However, of the 200 properties on the city housing agency’s 2008 list of buildings with the most severe maintenance problems, at least 77 had been in foreclosure.

In buildings with a struggling landlord, maintenance will typically be the first thing to go. Garbage can pile up, lists of overdue repairs lengthen, and vermin multiply.

Attempted Block on Charter's Emergence From Bankruptcy

blog@www.castlelaw.net (News Author)11582 — Thu, 03 Dec 2009 08:00:00 EST

Lenders, stockholders, and bondholders are attempting to block St. Louis-based Charter Communications Inc.’s emergence from Chapter 11 bankruptcy while they appeal a judge’s approval of the cable company’s reorganization plan.

On November 20, a group of lenders led by JPMorgan Chase & Co., stockholder R2 Investment LDC, and Law Debenture Trust Co. of New York, a trustee for holders of $479 million in bonds, filed motions with the U.S. Bankruptcy Court in the Southern District of New York asking that Judge James Peck hold off on his order approving the bankruptcy plan while they appeal.

The lenders say the confirmation order “compels financial institutions to lend a post-bankruptcy reorganized company $8.4 billion, on pre-bankruptcy terms, over the lenders’ objection.”

Charter and Chief Executive Neil Smit said they anticipated objectors filing an appeal to the confirmation. However, they expect the plan will take effect even if an appeal is still pending.

Attorneys for Charter said that any delays in the company’s emergence from bankruptcy could result in the loss of “hundreds of millions of dollars of additional interest,” and place the entire plan in danger.

According to Charter, it has paid more than $37.9 million per month of default and incremental interest and more than $129 million in legal and adviser fees during the bankruptcy process.

Good News on Foreclosures in Missouri and Kansas

blog@www.castlelaw.net (News Author)11581 — Thu, 03 Dec 2009 08:00:00 EST

There is some encouraging news on the rate of home foreclosures in Missouri in Kansas. Financially troubled homeowners are not out of the woods yet, but the worst may be over.

According to a report from RealtyTrac, in October Kansas reported a 27 percent decrease in home foreclosures in comparison to September. Though the number is up from the rate in October 2008. With a total of 1,313 foreclosure actions, Kansas ranks 37th overall for October.

In Missouri, home foreclosures saw an increase of 2.03 percent from September to October. However, the number was a decrease of 12.36 percent from October 2008, Irvine, California-based real estate firm RealtyTrac said. With a total of 3,218 foreclosure actions, Missouri ranks 30th overall.

Foreclosures across the U.S. saw a decrease for the third consecutive month in October, another sign that the worst of the housing crisis could be over.

National Foreclosure Rate to Rise Through 2010 Experts Say

blog@www.castlelaw.net (News Author)11525 — Mon, 30 Nov 2009 08:00:00 EST

Many economists and organizations are saying that the recession is over – but does that mean that the rate of foreclosures and other housing woes will soon disappear? The Mortgage Bankers Association says that the answer is no. In all likelihood, foreclosure rates will rise, not drop, throughout 2010 even as other aspects of the economy are expected to improve. Currently, one in seven homes in America are either overdue or delinquent when it comes to their mortgage – the highest levels since 1972.

What are some of the reasons for this continued foreclosure plague? There are a number of factors:

•    The struggling housing market. Although the first time homebuyers tax credit and other incentives have helped the housing market, home prices are still down in many areas and one in four homeowners are upside-down on their mortgage.
•    Some adjustable rate mortgages (ARMs) have yet to adjust. A large number of the foreclosures that have already taken place came about because of ARMs that adjusted to rates far beyond what the homeowner could ever pay. Even more ARMs are set to adjust in the next year – which will prove to be bad news for a significant number of homeowners.
•    Unemployment is still high. As Americans continue to struggle to find work, deal with pay cuts, or lose their jobs, mortgages that were once easy to pay are now impossible. With job prospects projected to remain weak in 2010, it is likely that many out-of-work families will face issues with foreclosure.
•    Too many houses on the market. Because of the foreclosures and short sales already flooding the market, and because of a hesitant group of homebuyers, housing prices have fallen across almost all markets, lessening the value of most homes.

Missouri Bankruptcy Filings Continue to Soar – 23% This Federal Fiscal Year

blog@www.castlelaw.net (News Author)11521 — Mon, 30 Nov 2009 08:00:00 EST

Just as economists and bankruptcy experts predicted, bankruptcy rates are up again this year in the state of Missouri, with more than five out of every 1000 people across the state filing for bankruptcy during the 2009 federal fiscal year. This number is a 23 percent increase from the 2008 filings. The federal fiscal year ended on September 30 and the bankruptcy statistics were released last Wednesday by government officials.

Both personal bankruptcy filings and business bankruptcy filings increased this year – an increase that is blamed on the continuing high unemployment rates, the struggling housing market, and the economy as a whole. Bankruptcy rates in Missouri have not been this high since the bankruptcy reform laws took effect in 2005.

In fiscal year 2009, 30,025 people across Missouri filed for bankruptcy in the state’s federal court districts. Last year, 24,216 people petitioned for bankruptcy in Missouri.

Nationally, the number of bankruptcy filings was up 33 percent – with 1.4 million people declaring bankruptcy across America. Last year, just over 1.1 million people petitioned for bankruptcy. Business bankruptcies jumped 32 percent this year, with 45,510 companies filing so far in 2009.

Chapter 7 bankruptcies rose a shocking 42 percent, with 265,721 individuals filing in the third fiscal quarter. Chapter 13 bankruptcies, also known as reorganization bankruptcies, rose 15 percent, with 107,142 individuals filing in the third fiscal quarter. Nevada led the country in most bankruptcies per capital.

Medical Bankruptcy Rate Increases – Even For Those With Health Insurance

blog@www.castlelaw.net (News Author)11520 — Mon, 30 Nov 2009 08:00:00 EST

In November, we are focusing on the common causes of bankruptcy filings. Unlike many may assume, the vast majority of bankruptcies are not due to overspending, but rather due to an unexpected life emergency or life event. While bankruptcy experts knew that medical emergencies were a common reason that families go bankrupt, a new study from Harvard University has revealed that even more people than previously thought file bankruptcy because of medical bills. Even more shockingly, many of these families in medical emergencies have some form of health insurance coverage.

In Kansas City, Missouri, Tonni Brende of Independence and her family looked torward bankruptcy after a string of medical problems. A son with cerebral palsy and a Hepetitis C diagnosis for Brende broke the family’s bank even though they had Medicaid and other health insurance coverage.

Another person, Jim Trinidad of Liberty, Missouri, cares for his 29-year-old son, who has been in a vegetative state since a car accident 12 years ago. While Medicaid covers some costs, Jim has to turn down work and spend much of his day caring for his son’s medical needs – needs he will have for the rest of his life.

Both Missouri families turned to bankruptcy after facing medical bills and other related financial challenges that they were simply not a match for. They are just two examples of MO people who were responsible with their money – but unprepared for the unexpected medical tragedies that affected every aspect of their lives.

Case on Loan Modifications May Appeal Ruling

blog@www.castlelaw.net (News Author)11510 — Mon, 30 Nov 2009 08:00:00 EST

In Minneapolis, Minnesota, a federal judge has dismissed a lawsuit filed by a group of Twin Cities homeowners claiming that charged loan service companies are improperly implementing the federal government’s loan modification program.

The suit, which a public interest group in St. Paul, Minnesota filed this summer, also asked that U.S. District Judge Ann Montgomery issue an injunction preventing bank foreclosures in Minnesota from going forward. In an order issued on November 9, Montgomery said the request had been denied.

Mark Ireland, the attorney who brought the suit by the Foreclosure Relief Law Project, said that the group was reviewing the decision in order to determine if it would file an appeal.

The suit targeted the federal Home Affordable Modification Program, which the Obama administration introduced in the spring in an effort to fight the high number of bank foreclosures in the U.S.

In a separate release on November 10, the Treasury Department released the latest performance numbers on the program, which provides loan servicers with incentives to modify loan terms for struggling borrowers.

According to the Treasury Department, the cumulative number of trial modifications provided through the program stood at 650,994 at the end of October, an increase of nearly 34 percent from the 487,081 trial modifications that had been initiated as of September 30.

Herbst's Post-Bankruptcy Layoffs

blog@www.castlelaw.net (News Author)11460 — Wed, 25 Nov 2009 08:00:00 EST

On November 9, bankrupt gaming giant Herbst Gaming confirmed that it had laid off workers throughout the company. The announced layoffs come less than two weeks after a bankruptcy court judge in Reno, Nevada approved a plan that will hand the company over to its secured lenders sometime in 2010.

According to Herbst general counsel Sean Higgins, the layoffs accounted for less than five percent of the company’s workforce.

Upon its filing for Chapter 11 bankruptcy in March, Herbst reported that it employed approximately 5,400 workers, which was down from total of 6,450 employees the company reported to the Securities and Exchange Commission on December 31.

The company’s current employee numbers were not available.

On October 31, U.S. Bankruptcy Judge Gregg Zive approve a plan to hand the 15 casinos and 600-location, 6,400-machine Nevada slot route to a group of lenders that holds $876.5 million in debt.

Twelve of the casinos the company owns are in Nevada, two of them are located in Missouri, and one is in Iowa. The company also owns the 275-room Terrible’s hotel and casino in Las Vegas.

The company also owns three casinos in Primm, Nevada – Whiskey Pete’s, Buffalo Bills, and Primm Valley Resort – which it acquired in 2007 from MGM Mirage.

Under the company’s reorganization plan, the lenders will receive 100 percent of the company’s casinos and slot routes. The new company will issue $350 million in new senior secured bank loans as part of the reorganization.

The reorganization will wipe out the equities of Timothy P. Herbst, Edward J. Herbst, and Troy D. Herbst. The brothers remain directors of the company, with Troy Herbst as chief executive officer.

Fannie Mae Gives People in Foreclosure Chance at Leasing

blog@www.castlelaw.net (News Author)11413 — Mon, 23 Nov 2009 08:00:00 EST

On November 5, mortgage giant Fannie Mae announced a plan to allow people losing their homes to foreclosure to lease those properties back for up to a year at market rental rates.

The move is the latest in a series of steps by lenders attempting to manage inventories of foreclosed homes on their books in an attempt to keep a wave of properties from slamming a housing market that has shown recent signs of recovery.

The announcement came alongside a report that Fannie Mae suffered a third quarter net loss of $18.9 billion, in comparison to a second quarter $14.8 billion loss and a loss of $29.4 billion in the third quarter of 2008.

The most recent loss pushed the mortgage giant’s government regulator to request $15 billion from the Treasury Department on November 5. It was the fourth time the company had drawn on its federal financial lifeline since it and sister firm Freddie Mac were seized and placed under government stewardship.

According to analysts, Fannie Mae’s Deed for Lease Program would add to other efforts the federal government is making to aid the housing market by reducing the supply of cheap foreclosures on the market.

According to Fannie Mae vice president of equity investments Jay Ryan, the program would help stabilize neighborhoods. According to the firm, only borrowers who had exhausted other options, such as loan modification, would qualify for the program.

The program would also allow Fannie Mae to produce some income from the properties, many of which are underwater, while waiting for home prices to recover.

The company did not have estimates as to how many homeowners would qualify. In order to participate, borrowers must agree to convey all interest in a property to the lender. According to a November 5 filing with the Securities and Exchange Commission, the company recorded a total of 1,996 people agreeing to such a transaction within the first nine months of 2009.

The program requires that the home be a borrower’s primary place of residence. A borrower-turned-tenant would be required to document that the new market rental rate is no more than 31 percent of his or her gross income and be released from any subordinate liens on the property.

United Commercial Bank Shut Down by FDIC

blog@www.castlelaw.net (News Author)11412 — Mon, 23 Nov 2009 08:00:00 EST

In addition to the $3.2 billion the federal government lost earlier in November due to CIT filing for bankruptcy, another $1.7 billion is lost because of United Commercial Bank’s collapse.

San Francisco-based United Commercial Bank is the first financial institution that received TARP bailout money to be shut down by the Federal Deposit Insurance Corporation (FDIC). The so-called “healthy bank” received TARP funds of $299 million and its failure will result in a $1.4 billion loss for the FDIC.

Also on November 6, the FDIC seized institutions in Georgia, Michigan, Minnesota, and Missouri, bringing the total in 2009 to 120 and still rising. The total represents the most failures since 1992, when 181 banks were shut down by the FDIC.

October Bankruptcy Rates Continue To Soar

blog@www.castlelaw.net (News Author)11355 — Thu, 19 Nov 2009 08:00:00 EST

While many economists claim that the most significant recession in recent history is officially at an end, the rate of bankruptcy filings across the United States is still skyrocketing. In addition, some are predicting even higher number next month and on into 2010.

Why are the bankruptcy numbers still going up, for both consumers and companies? Bankruptcy experts point to continued high rates of unemployment as well as the continued weak housing market that has left many families with upside-down mortgages. Many are still just one or two paychecks away from losing their house, keeping food on the table, and keeping their bills paid – while others are struggling with adjustable rate mortgages, medical emergencies without healthcare coverage, or other financial issues. The American Bankruptcy Institute predicts that 1.4 million people in America will file for Chapter 7 or Chapter 13 bankruptcy by the end of the year.

According to data collected by Jupiter ESources LLC, the October 2009 bankruptcy rates were higher than they have been since 2005, when bankruptcy laws were made stricter. In comparison to October 2008, 25 percent more people filed for bankruptcy, for a total of 131,200 bankruptcy petitions in just one month. Since the beginning of the year, 1.2 million people filed for bankruptcy – more than all of the 1.1 million bankruptcy filings in 2008.

Bankruptcy lawyers believe that while the economy on the whole is indeed recovering, certain sectors, such as real estate and finance, are still suffering – and that those involved in hurting industries are still struggling to keep their houses and their financial security.

Pork Producer Goes Bankrupt; Some Blame on Swine Flu

blog@www.castlelaw.net (News Author)11342 — Thu, 19 Nov 2009 08:00:00 EST

A major pork producer in North Carolina recently filed for bankruptcy, citing complaints from unpaid vendors and declining consumption of pork due to fears over swine flu as reasons.

According to a report in Raleigh, N.C.’s News & Observer, Coharie Farms of Clinton, N.C., with a court appearance scheduled for November 10. According to Coharie owner Anne Faircloth, she plans upon liquidating the company and some of the 170 employees will be laid off.

Earlier in November, as many as 30 farmers complained of not being paid by Coharie for grain deliveries. Coharie’s debts to various vendors exceed $3 million.

The company blamed its losses on an increase in grain prices in 2008, a $20 decrease in hog prices, and unwarranted fears of swine flu driving down pork consumption. In 2009, Coharie has lost $17 million.

North Carolina’s pork industry is the second largest in the U.S.

Former Nebraska Football Star Goes Through Bankruptcy After Business Venture

blog@www.castlelaw.net (News Author)11341 — Thu, 19 Nov 2009 08:00:00 EST

Former Nebraska Cornhusker star Aaron Taylor may have seen a great deal of success on the field, but the failure of his Cornhusker-themed restaurant in Omaha and his subsequent bankruptcy are hitting him hard.

While at Nebraska, Taylor was a part of three national championship teams, was an all-American at center and guard, and won the Outland Trophy as the nation’s best interior lineman in 1997.

On (Saturday before story), it only took approximately 30 minutes to lose possession of some of the tangible evidence of his accomplishments.

A court-ordered auction saw the sale of Taylor’s Outland Trophy and seven championship rings. The Associated Press reported that the trophy was sold for a total of $6,800 and the diamond-encrusted rings sold for $2,000 to $5,900. In total, the auction brought in $28,500.

According to Philip Kelly, the bankruptcy trustee in the case, the identities of online bidders were not immediately available, but it did not appear that Taylor had submitted any of the winning bids. Some Nebraska fans upset with the situation donated money in an attempt to aid Taylor in purchasing some of his items.

Taylor attempted to exclude the memorabilia from bankruptcy liquidation, but his attorney informed him that under Chapter 7 bankruptcy law, the championship rings and trophy could not be excluded. Taylor’s case did not qualify for another type of bankruptcy that could have allowed him to keep the items.

In Taylor’s initial bankruptcy filing during the summer of 2008, he noted that he owed at least $109,543 and listed assets worth $5,300. That sum did not include the value of the rings and Outland Trophy.

St. Louis Woman Charged With Concealing Assets In Chapter 7 Bankruptcy

blog@www.castlelaw.net (News Author)11309 — Tue, 17 Nov 2009 08:00:00 EST

This week we covered an important topic that all people considering bankruptcy should know about: What Happens When You Don’t List Everything in Your Bankruptcy? The answer, as you might guess, is that you can be charged with bankruptcy fraud and may face severe consequences including prison time.

Just last month, the American Chronicle reported on the bankruptcy fraud case of 45-year-old Julie Lynn Wagman, a St. Louis, Missouri, woman who filed for Chapter 7 Bankruptcy in August of 2005. When listing her assets as part of her bankruptcy petition, the MO woman tried to hide several assets from the courts, totaling over $50,000. According to United States District Judge Catherine D. Perry, the woman failed to list several expensive pieces of jewelry, including a Rolex watch, a tennis bracelet, and her wedding ring. While she did not list her expensive items, she did list several items under $300.

During her divorce proceedings two years later, the property was discovered and Wagman admitted that she had purposefully omitted her expensive items during the bankruptcy proceedings. She later pleaded guilty to making false statements during a bankruptcy proceeding. She has been ordered to serve five months in prison and five months of house arrest. In addition, she must pay $54,400 in restitution for her bankruptcy fraud.

The lesson here is simple: as with all things, honesty is the best policy – and in a bankruptcy procedure, anything less than honesty could end in prison.

Foreclosure Filings Up in Missouri in the Third Quarter

blog@www.castlelaw.net (News Author)11288 — Mon, 16 Nov 2009 08:00:00 EST

According to a report released on (Thursday before story) by Irvine, California-based RealtyTrac, the number of home foreclosure filings in Missouri saw an increase of 8.3 percent in the third quarter, as the recession bested efforts to aid struggling borrowers with holding on to their homes.

The report showed that during the July-September period, 7,892 foreclosure filings took place in Missouri. The number is a decrease of 11.2 percent from the third quarter in 2008, but RealtyTrac noted that some of the records had stopped being collected in January.

Filings include default notices, auction-sale notices and bank repossessions.

One out of every 335 Missouri housing units was foreclosed upon during the third quarter. That rate is considerably lower than the national average of one out of every 136 households, ranking the state 30th nationally.

RealtyTrac said that in September alone, foreclosure filings in the state saw an increase of 26.3 percent from August, putting the number at 3,154. That was also 8.8 percent higher than the September 2008 total.

Across the U.S., the number of September filings decreased four percent from August, but was still the third-highest month since RealtyTrac’s report began in 2005.

St. Charles Homebuilder Files for Bankruptcy

blog@www.castlelaw.net (News Author)11265 — Fri, 13 Nov 2009 08:00:00 EST

St. Charles, Missouri-based homebuilder Whittaker Builders has filed for bankruptcy protection. On October 15, the company, led by President Greg Whittaker, filed for Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Missouri.

In 2008, Whittaker was the fifth-largest homebuilder in the St. Louis metro area. However, the struggling real estate market did a great deal of damage to the company.

Whittaker’s revenue was $93.3 million in 2006, but decreased to $82.7 million in 2007 and $29.2 million in 2008. Nearly half of the company’s workforce was laid off, reducing the number of employees from 288 in 2007 to 150 in 2008.

According to the company’s Web site, Whittaker cites changes in the credit market as a driving force in the company’s decision to reorganize.

Whittaker said that he plans to personally invest $1 million to provide capital to the company during the reorganization period.

Whittaker says the company will remain open and continue to provide customers with warranty, service, and customer support.

Missouri Forgives Debts for Students at Bankrupt Helicopter School

blog@www.castlelaw.net (News Author)11264 — Fri, 13 Nov 2009 08:00:00 EST

Under the terms of a settlement between Student Loan Xpress, Missouri, and 11 other states, the company will forgive nearly $113 million in debt for students who obtained loans to attend a now-bankrupt helicopter training school.

According to an October (Tuesday before story) statement from Missouri Attorney General Chris Koster, the state’s victims will be entitled to more than $2.9 million in student loan forgiveness.

Las Vegas-based Silver State Helicopters began operation in 2002 as a training school to train small helicopter pilots. The company ultimately operated 34 flight schools across the U.S.

For a period of at least two years, Student Loan Xpress was the preferred student lender for Silver State, providing an approximately total of $172 million to more than 2,800 students across the U.S., according to Koster’s office.

Koster’s office said that records revealed that only a small percentage of students actually graduated from the school and the school had an exceptionally high drop-out rate.

Silver State had ceased operations and filed for bankruptcy by 2008, leaving students up in the air.

Koster’s office received a total of 53 complaints about the school going into bankruptcy and the student loans still owed.

CIT Group May File for Prepackaged Bankruptcy

blog@www.castlelaw.net (News Author)11263 — Fri, 13 Nov 2009 08:00:00 EST

CIT Group Inc., the 101-year-ld commercial lender attempting to avoid collapse, could soon file for a prepackaged bankruptcy after reaching agreements with billionaire Carl Icahn and Goldman Sachs Group Inc.

Under the agreement, Icahn will supply a $1 billion loan for “supplemental liquidity” that could be used as bankruptcy financing, according to the New York-based company. Goldman Sachs will keep a credit line open, should the lender file for court protection.

The accords were disclosed one day after a deadline passed for CIT to solicit votes in support of either a $30 billion out-of-court debt exchange or a prepackaged bankruptcy. CIT seeks to reduce its debt by at least $5.7 billion after being locked out of credit markets it relies on for funding and posting nine quarters of losses totaling more than $5 billion.

The prepackaged plan would give CIT bondholders 70 cents on the dollar in the form of new notes and equity in the reorganized company. If CIT is forced into a “free-fall” bankruptcy, unsecured claims could fetch as little as six cents on the dollar, according to CIT chief executive officer Jeffrey Peek.

On October 28, CIT said that it had arranged a $4.5 billion term loan that can be used in bankruptcy.

If the prepackaged plan receives approval, the company plans upon filing for bankruptcy before $800 million of bonds mature, according to people familiar with the situation who declined to be identified.

Leader of Waterford Speedbowl Staves Off Foreclosure

blog@www.castlelaw.net (News Author)11197 — Fri, 06 Nov 2009 08:00:00 EST

For the second time within the past three years, Terry Eames, the leader of the ownership group of Connecticut’s Waterford Speedbowl, has staved off foreclosure on the racetrack.

On (Friday before story), Eames and his group filed for Chapter 11 bankruptcy in Federal Court, effectively canceling a foreclosure auction at the facility that had been scheduled to take place on (date of story).

The action grants the group a chance to reorganize under the protection and supervision of bankruptcy court. According to Eames, all business affairs, including preparations for the 2010 racing season, would continue.

Eames said a giant multinational corporation made him an offer that would’ve turned the track into an industrial park, but he is “in love with this place as a racetrack and the community of people that make it that,” and is “determined to see this survive.”

Eames and his ownership group were received a loan from Southbury businessman and racing supporter Rocco Arbitell and business associated Peter Borrelli to avoid foreclosure by former mortgage holder Washington Mutual Bank.

Arbitell foreclosed on the ownership group in May 2008 after former track operator Jerry Robinson failed to pay property taxes. Eames and his group owe a debt of more than $750,000 to Arbitell and Borrelli.

Real Housewives Star Adds to Rising Rate of Foreclosure

blog@www.castlelaw.net (News Author)11192 — Thu, 05 Nov 2009 08:00:00 EST

The Real Housewives of New Jersey star Teresa Giudice may be regretting the decision to build her lavish new home from scratch.

Giudice and her husband, Joe Giudice, are now facing foreclosure on their newly built Lincoln Park, New Jersey home after their mortgage company filed a complaint in New Jersey Superior Court on October 9, according to an October 23 report from E! News.

DLI Mortgage Capital Inc.’s complaint seeks to recover the family’s home because of the amount of owed money the family failed to pay.

On the popular show’s first season, Giudice said she decided upon a custom-built 12,000 square foot home because she believed buying a pre-owned home to be “unclean.” She paid for tens of thousands worth of furnishings in cash.

The show was renewed by Bravo for a second season earlier in October.

Senator Durbin and Others Protest ABA for Rising Number of Foreclosures

blog@www.castlelaw.net (News Author)11166 — Tue, 03 Nov 2009 08:00:00 EST

On October 25, United States Senator Dick Durbin and nearly a dozen protestors issued calls for banks that received billions in bailout money to aid consumers who have fallen victim to bad loan practices and are losing their homes to foreclosure.

Durbin specifically referenced a Chicago, Illinois neighborhood called Marquette Park, which is near Midway Airport, noting that, despite the nice appearance, each block has a foreclosed home.

Durbin says the neighborhood is no different from others across the nation, during his speech at a downtown Chicago hotel conference room in from of approximately 500 protestors who had come to the city to protest the annual American Bankers Association meeting.

According to the accusations of Durbin and the protesters, the ABA lobbied against banking reform despite members receiving billions in federal bailout money.

The Obama administration has proposed cutting executive pay and bonuses for people who received the most bailout money. The administration has also proposed the creation of the Consumer Financial Protection Agency, which would be able to establish rules for consumer protection and prohibit business practices it deems unfair, dishonest, or abusive, among other things.

Several banking and business groups are in opposition to the proposed agency, saying that it would harm consumers by imposing so many new rules that companies would have to charge more for loans and credit, or not offer them at all.

Foreclosures Continue to Rise in Missouri and Kansas

blog@www.castlelaw.net (News Author)11152 — Mon, 02 Nov 2009 08:00:00 EST

According to statistics released on October 15 by RealtyTrac Inc., home foreclosures in Missouri and Kansas both saw an increase in September as the pace of foreclosures across the U.S. continued at a near-record pace.

RealtyTrac said that in September, foreclosure activity in Missouri saw an increase of 8.8 percent in comparison to September 2008. Foreclosure activity for September in Kansas was up 22.4 percent from September 2008.

Missouri was ranked 29th in the U.S. for foreclosure activity in September with a total of 3,154 filings, including default notices, scheduled auctions, and bank repossessions. Kansas was No. 33 with 1,272.

September foreclosure activity for Missouri was an increase of 26.3 percent from August. Kansas’ was an increase of 20.5 percent.

Foreclosure activity across the U.S. was down four percent from August with 343,638. However, it was up 29 percent from September 2008. In spite of the decrease, the total for September was still the third-highest monthly total since RealtyTrac’s report began in January 2005. The highest was July 2009 and second was August 2009.

City of New York Claims Right to "Tavern on the Green" Name

blog@www.castlelaw.net (News Author)11122 — Fri, 30 Oct 2009 08:00:00 EST

The city of New York has filed suit against the operators of bankrupt Tavern on the Green, claiming the city has the sole right to use the historical restaurant’s name.

According to the suit the city filed on October 21, the trademark, valued at $19 million by the operators of the restaurant, was the single largest asset in the bankruptcy estate.

The city is attempting to prevent the Leroy family, which owns the Tavern on the Green name, from opening or operating other establishments under the same moniker.

According to the Leroy family, they have owned the trademark since 1978.

Earlier in October, the operators filed suit against the city, seeking more time to auction the restaurant’s assets. The family has also argued that any new concessionaire could make much more profit by operating under the “Tavern on the Green” name.

The restaurant filed for bankruptcy protection in September after a new lease for the property was granted to another restaurateur.

The current operators have held a lease since 1974, but that least expires at the end of the year.

"Terminator" Franchise Up for Grabs

blog@www.castlelaw.net (News Author)11068 — Wed, 28 Oct 2009 08:00:00 EST

The production company that owns the rights to the “Terminator” film franchise is seeking a buyer for the film rights after filing suit against a hedge fund firm and filing for bankruptcy.

Halcyon Holdings Group has retained FTI Capital Advisors to look into strategic alternatives, which likely means selling the intellectual property rights, according to FTI Senior Managing Director Kevin Shultz.

Halcyon’s version of the science fiction series, “Terminator Salvation”, which starred Christian bale, was released earlier in 2009.

However, despite big name stars and a powerhouse franchise, Halcyon encountered financial woes. The company’s principals, Derek Anderson and Victor Kubicek, filed suit against Kurt Benjamin, a former business executive with California hedge fund firm Pacificor. They allege that Benjamin had arranged for a $30 million loan to finance the film, but did not inform them that a hedge fund was the source of the money.

The filmmakers also allege that Benjamin encourage the company to develop a video game subsidiary, which accounted for much of the production company’s losses.

After filing for hedge firm, the producers filed for bankruptcy, alleging that they were forced into it by the hedge fund’s insistence on being paid back.

The bankruptcy court would have to approve and sale of rights.

According to Shultz, a sale could come in well over the $30 million that Halcyon paid to purchase the rights in 2007. He says there has already been a great deal of interest.

Adams Dairy Development LLC Declares Bankruptcy In Western Missouri

blog@www.castlelaw.net (News Author)11008 — Mon, 26 Oct 2009 08:00:00 EST

A large, multi-purpose real estate project in Blue Springs has ended in the bankruptcy of the developer, according to the Kansas City Business Journal and KansasCity.com. The bankruptcy is freezing the foreclosure of the property in question, which is off of Interstate 70, while the company developing the land seeks new financial support.

The company, Adams Dairy Development, LLC, began a new project called Lake Ridge Village. The planned 104-acre real estate project would consist of a number of commercial and residential buildings, including 200,000 square feet of commercial space, over 400 residential units, and a nursing home. However, the mix of lofts, condos, shops, and offices did not develop as expected in the last two years. Only a few lots were sold.

Adams Dairy Development has one secured creditor, Heartland Bank. According to proceedings following the company's Chapter 11 bankruptcy petition, the developer owes the bank $11.4 million. A handful of unsecured creditors are also owed money, including the Jackson County Collector, who is seeking real estate taxes.

The company's Missouri bankruptcy lawyer said that the company is looking for a way out of their money trouble - a solution that might include finding new investors, building a joint venture, or using the land for a different development project altogether.

Other real estate developers are also breaking ground in the Blue Springs area around the Interstate 70-Adams Dairy Parkway interchange, but with more success.

Jolt Energy Drink Company Files for Chapter 11

blog@www.castlelaw.net (News Author)10988 — Mon, 26 Oct 2009 08:00:00 EST

Jolt Co Inc, the manufacturer of the famous Jolt Cola energy drink, has filed for Chapter 11 bankruptcy protection due to a dispute with drinks can manufacturer Rexam. The filing was on September 28 in Manhattan, New York.

According to Jolt’s court filings, the company agreed to purchase 90 million 23.5 ounce resealable cans from Rexam between January 2007 and December 2009. But due to the recession, Jolt has only been able to purchase 27 million as of the date of the filing.

Jolt has said that it must launch non-resealable cans to compete in the market, because Rexam’s resealable cans cost three times as much as non-resealable cans.

The company also said that it is not likely to secure additional capital to pursue the non-resealable can strategy due to Rexam’s claims and asserted liabilities.

In the bankruptcy filing, Jolt, doing business as Wet Planet Beverages, listed assets and debt between $1 million and $10 million. Rexam, which is owed approximately $2.1 million, was listed as the company’s largest unsecured creditor.

In 1985, Jolt Cola was created by C.J. Rapp as a highly caffeinated beverage. The energy drink is sold across the U.S., Canada, and Europe.

Charter Extends Bankruptcy

blog@www.castlelaw.net (News Author)10923 — Thu, 22 Oct 2009 08:00:00 EST

Bankrupt St. Louis-based U.S. cable operator Charter Communications Inc. has changed its debt restructuring deal with chairman Paul Allen, extending its bankruptcy until as late as December 15.

The agreement, which has been amended for the third time, to restructure debt held by Allen, a co-founder of Microsoft Corp. and other noteholders, was filed in bankruptcy court in Manhattan on October 13.

The amendment agreement allows for Charter to have until November 2 to emerge from bankruptcy, or until December 15 if the company has not been able to obtain the necessary permits and regulatory approval in connection with the reorganization plan by November 2.

According to attorneys for Charter, the company must get the required permits that cover areas serving at least 80 percent of its basic subscribers.

In March, Charter filed for bankruptcy protection due to a debt of $21.7 billion. However, at the time, the company said that it had reached agreements with key stakeholders that would allow it to emerge from bankruptcy within a matter of months.

The company originally reached the agreement with Allen and some of the noteholders in February. It called for Charter to reinstate $11.8 billion in debt at the same terms after the bankruptcy.

However, lender JPMorgan, on behalf of itself and other holders of $8.5 billion of Charter’s senior debt, opposed the bankruptcy plan, alleging that the company had violated its loan agreements.

Toni Braxton Hit with Foreclosure

blog@www.castlelaw.net (News Author)10922 — Thu, 22 Oct 2009 08:00:00 EST

Singer Toni Braxton was recently hit with a foreclosure notice on her home in Century City, California.

The 40-year-old singer owes a total of $12,503.20 on a defaulted mortgage payment based on a loan from Bank of America. She recently defaulted on a City National Bank loan worth $900,000, which she pledged to repay in November. The bank says they haven’t received a check since April.

Braxton’s loan balance was renegotiated to $657,567.54 and she now owes $44,000 in interest. She says she took out the loan because of “financial difficulty.”

This isn’t the first time Braxton has fallen onto rough times financially. In the late 90’s, she fell nearly $4 million in the hole, forcing her to file for bankruptcy.

Braxton’s foreclosure notice was filed in September.

Filing Bankruptcy in St. Louis - New Median Income Amounts

blog@www.castlelaw.net (News Author)10921 — Thu, 22 Oct 2009 08:00:00 EST

Under the Bankruptcy Law passed in 2005, to qualify for a Chapter 7 bankruptcy, you must first pass the Means Test. The first step to see if you qualify for a Chapter 7 bankruptcy is to determine if your gross income for the last 6 months is above or below the Median Family Income for your household size in the state you live in. The Median Income numbers are updated by the U.S. Census Bureau periodically which changes the initial qualification numbers for bankruptcy purposes.

Adams Dairy of Blue Springs Files Chapter 11

blog@www.castlelaw.net (News Author)10878 — Mon, 19 Oct 2009 08:00:00 EST

On October 1, the developer of a retail project in Blue Springs filed for Chapter 11 bankruptcy protection.

Adams Dairy Development LLC made the filing in U.S. Bankruptcy Court for the Western District of Missouri in order to protect it from creditors during reorganization.

The company is developing the Lake Ridge Village project in Blue Springs. The plan for the mixed-use project was to include 405 residential units ranging from high-rise estates to lofts, in addition to nearly 200,000 square feet of commercial space, according to Blue Springs Community Development Director Scott Allen.

The company’s lender, Heartland Bank, holds an $11.4 million claim on the development property, which is Adams Dairy Development’s only secured creditor.

Heartland was scheduled to foreclose on the property on October 2.

The company owes more than $100,000 in unsecured priority claims to multiple other unsecured creditors, in addition to a $2,218 claim by the Jackson County Collector for real estate taxes due December 16.

Chicago's Burr Oak Cemetery In Bankruptcy Court

blog@www.castlelaw.net (News Author)10873 — Mon, 19 Oct 2009 08:00:00 EST

After a plot to dig up bodies and resell graves was exposed earlier this year, Burr Oak Cemetery in Chicago has faced a number of problems, including debt. The fraught cemetery has been attempting to go through the process of Chapter 11 bankruptcy and sell off what assets it has, but now a number of lawsuits involving the recent plot-selling scandal could multiply the cemetery's financial problems. Allegedly, at least 300 bodies were dug up and discarded in the recent past from the troubled cemetery.

Cemetery operator Perpetua-Burr Oak Holdings of Illinois LLC had been planning to escape its money woes through a debtor-in-possession loan from Pacesetter SBIC Fund Inc., for almost half a million dollars. However, now the families of some of those buried at Burr Oak as well as the state of Illinois are filing lawsuits that will complicate financial matters and prevent any short sale of assets.

Perpetua Holdings of Illinois has already given control of their company to independent chief operating officer to run the cemetery in a court order approved by U.S. Bankruptcy Judge Pamela Hollis. In addition, Roman Szabelski of Catholic Cemeteries will act as an unpaid consultant in the matter.

Still, there is not a good idea of when the cemetery will reopen or how the roughly 50 civil suits filed against the company will be resolved. The clean-up and reopening was halted when the company declared bankruptcy - but now acting COO Howard Korenthal is expected to manage the crisis and return the cemetery to normalcy.

Bankruptcy Judge Okays Sale Of Chicago Sun-Times

blog@www.castlelaw.net (News Author)10851 — Fri, 16 Oct 2009 08:00:00 EST

On October 8, 2009, a US Bankruptcy Judge approved the sale of the Chicago Sun-Times to a group of local investors, securing the newspaper's continued existence. James Tyree, chief executive of Mesirow Financial, will take over control of the Sun-Times Media Group, which includes both the Chicago Sun-Times as well as over fifty other newspapers and news websites in Illinois. Tyree will also become responsible for about $20 million in the papers' remaining debt.

The sale was for $5 million. The sale involving Tyree and a handful of other Illinois investors has been in talks for several weeks as employees of the Sun-Times worked through contract changes and other compromises from union leaders. The concessions made by union members would include significant pay cuts for many working for the troubled media group.

"We are confident that they will vote in favor of this deal by the end of this week," the Sun-Times attorney told Judge Christopher Sontchi at Thursday's hearing.

Both the Sun-Times and the Chicago Tribune have filed for bankruptcy protection in the last year - making both of Illinois' major print papers struggling to get back on to their feet. Many print newspapers are hurting currently, due both to hard financial times and due to dropping advertising revenue as many companies are pouring money into online marketing. The newspaper was also struck by scandal in 2007 when former CEO Lord Conrad Black was accused of taking millions of dollars from the company.

The Chicago Sun-Times has published a paper since 1844. At the time of bankruptcy, the Sun-Times declared $801 million in debt and $479 million in assets.

Chicago Cubs File for Bankruptcy

blog@www.castlelaw.net (News Author)10847 — Fri, 16 Oct 2009 08:00:00 EST

On October 12, the Chicago Cubs filed for Chapter 11 bankruptcy protection, a move made so that their owner can sell the team in an $845 million deal. The filing was made in Wilmington, Delaware, was expected and the Cubs are only anticipated to spend a brief time under Chapter 11.

The bankruptcy filing is part of the plan of Cubs’ owner Tribune Co. to sell the team, Wrigley Field, and related properties to the family of TD Ameritrade founder Joe Ricketts.

In December, Tribune, which owns the Chicago Tribune and Los Angeles Times, filed for bankruptcy protection. However, the Cubs were not part of that filing. According to one bankruptcy attorney, the team’s period under Chapter 11 could be mere days, enough to protect the new owners from potential claims by Tribune creditors.

In 1981, Tribune purchased the Cubs for $20.5 from candy maker Wm. Wrigley Jr. Co. The company announced plans to sell the team in 2007, but the recession and credit market collapse hindered that plan.

Tribune has agreed to sell a 95 percent stake to the Ricketts family in a deal that tops the record $600 million paid for the Boston Red Sox and its related properties in 2002. Tribune will keep the remaining five percent.

The sale has been approved by the other MLB owners.

The Cubs are not the first baseball team to file for bankruptcy. In 1993, the Baltimore Orioles were sold after owner Eli Jacobs filed for Chapter 11. In 1969, the same happened to the Seattle Pilots, whose new owners moved the team to Milwaukee and changed the name to the Brewers.

Illinois To Crack Down On Predatory Debt Settlement Companies

blog@www.castlelaw.net (News Author)10842 — Thu, 15 Oct 2009 08:00:00 EST

Especially in times of economic hardship, a number of debt settlement companies will try to take advantage of those desperate for help. Now the Illinois state treasurer will seek better regulation regarding predatory debt settlement companies in his state.

Alexi Giannoulias said on Monday that many debt settlement companies do not help their customers reduce their debt. Not only that but that these unfair and predatory companies will also ask their customers to stop paying their bills and instead pay debt settlement fees. His speech was not only a warning to consumers to closely examine any debt settlement company they are thinking of using, but also to say that he plans on further regulating the companies in Illinois to protect consumers against scams.

Among the proposed regulations, Giannoulias would like to require state licensing of valid debt settlement companies, prevent the companies from suggesting that customers stop paying their bills, and prevent the companies from collecting more than $80 a month from their customers. The $80 would consist of a $50 upfront fee and $30 a month in continuing costs.

In many cases, those struggling with large amounts of debt often turn to debt settlement companies instead of seeking alternate means of paying off debts or declaring bankruptcy. However, many who turn to unscrupulous debt settlement companies end up damaging their credit scores even further - without escaping from their financial problems.

Chrysler Moves Assets in Bankruptcy

blog@www.castlelaw.net (News Author)10820 — Wed, 14 Oct 2009 08:00:00 EST

According to a report filed on September 20, the old assets of Chrysler LLC remaining in bankruptcy lost $12.1 billion in three months.

The report, which was filed in Manhattan bankruptcy court, shows a net loss of $344 million for the month ending July 31. Revenue of just $2 million was outweighed by $235 million in reorganization costs as the company, now known as Old Carco LLC, winds down what remains of its assets after a sale.

On April 30, Chrysler filed for bankruptcy protection and sold essentially all of its assets to a group led by Italy’s Fiat SpA in June, creating the world’s sixth-largest automaker.

According to attorneys for the bankrupt estate, “these entities are no longer engaged in any significant operations. The papers the attorneys filed with that statement were signed by Chief Executive Officer Ronald E. Kolka.

According to the company, the Fiat transaction caused debtors to lose $12.08 billion. The company added that it continues revising the loss amount recorded as of the transaction closing date of June 10.

The operating report said that cost of sales was $11 million in July, and loss before reorganization costs was $20 million. Total current assets are $2.28 billion, and total current liabilities are $3.86 billion.

In the three months since filing for bankruptcy, Chrysler has also seen a $600 million gain from a settlement with the Pension Benefit Guarantee Corp. from June 5, under which Daimler agreed to assume the $600 million obligation owed by Chrysler.

Office Depot Sued During Bankruptcy Filing

blog@www.castlelaw.net (News Author)10803 — Mon, 12 Oct 2009 08:00:00 EST

A former supplier has filed suit against Office Depot for $217, claiming that the company breached its contract in order to obtain supplies without paying. The supplier says the breach was a factor in its bankruptcy filing.

According to the complaint, which was filed in U.S. Bankruptcy Court in Nashville, Tennessee, the Boca Raton, Florida-based Office Depot “engaged in a cynical effort to defraud a long-time, loyal vendor through a pattern of deception.”

Nukote International, the Plano, Texas-based supplier that filed the claim, filed for bankruptcy earlier this year. The suit claims Office Depot’s breach of contract was partially responsible for the bankruptcy.

The complaint says that between late 2008 and May 2009, Office Depot created a scheme to fraudulently obtain Nukote’s most profitable product, private brand imaging supplies, with the smallest possible cash outlay.

The suit says that after being dropped as an Office Depot vendor, Nukote’s cash flow and borrowing capacity saw a dramatic decrease, resulting in the company being forced to enter Chapter 11 bankruptcy.

Office Depot denied the claims, saying that Nukote had been “significantly past due” on money owed to the company and that Office Depot “still holds a significant balance” from Nukote.

Office Depot claims that in April, Nukote ceased to ship its products, resulting in Office Depot being left short on stock and forced to find another vendor.

Herbst Gaming Inc. Plan to Exit Bankruptcy Criticized

blog@www.castlelaw.net (News Author)10754 — Thu, 08 Oct 2009 08:00:00 EST

According to a report from the Las Vegas Sun, key creditors and lenders that are owed hundreds of millions of dollars have harshly criticized a plan for Herbst Gaming Inc. to exit bankruptcy.

According to the critics, Herbst and its subsidiaries involved in the bankruptcy case engaged in dubious casino acquisition deals that overwhelmed the company with debt, along with improperly placing the interests of senior lenders ahead of junior lenders and other creditors.

Earlier this year, Herbst Gaming filed for Chapter 11 bankruptcy. The company runs a route business that owns and operates over 6,800 gaming machines in grocery stores, drug stores, convenience stores, bars, and restaurants across Nevada. The company also runs a casino business that owns and operates 12 casinos in Nevada, two in Missouri, and one in Iowa, employing a total of 5,400 people. The gaming division is a sister company to the more than 100-unit Terrible Herbst convenience stores, also based in Las Vegas.

In a July filing with the court, the unsecured creditors claim that Herbst, which is controlled by the Herbst family, was harmed by a pattern of breaches of fiduciary duty, misconduct, and mismanagement by the debtors’ officers and directors, and involved excessive salaries to Herbst officers and improper deals involving Terrible Herbst.

Increase in Foreclosure Rescue Scams

blog@www.castlelaw.net (News Author)10753 — Thu, 08 Oct 2009 08:00:00 EST

With foreclosure filings on the rise in Kansas City, housing counselors warn that there is also an increase in foreclosure rescue scams.

This is the simplest advice to avoid being ripped off: Never send your mortgage payment or any payment concerning your loan to anyone other than your mortgage lender.

You could receive a letter promising hope to homeowners facing foreclosure. It says that the company can renegotiate your mortgage and that cash-strapped borrowers won’t have to pay as much as they now owe.

However, when one woman, Marjorie Major, contacted one such company in Florida, she learned that she would be required to pay upfront fees ranging from $1,000 to $5,000. The practice of charging upfront for foreclosure relief is illegal in several states, including both Kansas and Missouri.

Legitimate federally-certified housing counselors say that desperate homeowners continued to be lured into these scams, despite warnings to the contrary.

Here are a few tips for avoiding scams:

- Never use any ad, person, or company that approaches you claiming to be able to “stop foreclosure now” for a fee.
- Never divulge financial information online or over the phone to a company you know nothing about.
- Never send your mortgage payment, or any payment, to a company other than your mortgage lender.
- Contact your mortgage lender. Despite what a scammer will say, you should contact your lender when you have trouble making monthly payments.
- If you suspect you have been approached or victimized by a scammer, contact your local Better Business Bureau, a state attorney general’s office, and/or the Federal Trade Commission.

Chicago Bankruptcies Still On Rise – With No End In Sight

blog@www.castlelaw.net (News Author)10704 — Mon, 05 Oct 2009 08:00:00 EST

Despite some signs that the recession is coming to the end, personal Chicago bankruptcies are still on the rise - with a 38% increase in individual bankruptcy filings from this September in comparison to last September.

Bankruptcy experts and economists say the trend will continue as jobless rates rise and as many still struggle with mortgage payments. Bankruptcy filings in 2009 have more than doubled since 2006.

In Chicago, Illinois, alone, 4,302 new bankruptcy petitions were filed, compared with just over 1,500 filed in 2006 and 3,121 last year. While the number of Chapter 7 liquidation bankruptcies increased dramatically, the number of Chapter 13 reorganization bankruptcies decreased somewhat. Many believe that this is because most lost jobs mean fewer wage-earner bankruptcies.

The numbers also looked bad for corporations and Chapter 11 bankruptcy, with numbers steadily increasing. In fact, this September's Chapter 11 filings doubled in comparison to last year's, with 34 businesses seeking bankruptcy protection. This, too, may be a red flag that the economy is still weak in the wake of last year's financial crisis.

The last time that bankruptcy filings were this high was in 2005, just before the bankruptcy laws changed, making it harder to declare bankruptcy. While many feel that the reason that bankruptcy rates continue to climb is extremely complex and even impossible to fully understand, the majority of experts agree that the rising bankruptcy rates will not taper off any time in the near future.

Irwin Financial Corp Files Liquidation Bankrutpcy

blog@www.castlelaw.net (News Author)10697 — Mon, 05 Oct 2009 08:00:00 EST

Irwin Financial Corp. has filed a liquidation bankruptcy after federal and state regulators seized the company’s main banking assets on September 18.

The Columbus, Indiana-based financial holding company filed for Chapter 7 bankruptcy in federal court in Indianapolis, listing assets of $10 million to $50 million and debts of more than $100 million.

According to the publicly traded company, it is not expecting to receive any recovery upon completion of the receivership and conservatorship process with its seized banks.

Irwin Union Bank and Trust, based out of Columbus, and a smaller savings and loan based out of Louisville have been placed under the receivership of the Federal Deposit Insurance Corp. and assets were sold to Ohio-based First Financial Corp., which has taken over all of the bank’s branches and assumed control of deposits.

The government’s takeover of the banks, on the grounds of insolvency, leaves little to no assets remaining under the holding company, essentially eradicating the company’s value for shareholders and bondholders.

According to Irwin Financial, it has outstanding debentures of $234 million, which are due and payable to holders due to the bank takeover. However, very little money apparently exists to pay them.

According to the government, the cost to its public Deposit Insurance Fund from the company’s failure could reach $850 million.

This marks the first failure of a bank in Indiana during the current economic recession.

10 Ways Sports Stars Ruin Their Finances

blog@www.castlelaw.net (News Author)10667 — Fri, 02 Oct 2009 08:00:00 EST

The Business Insider recently compiled a list of the 10 ways sports stars ruin their finances and end up in bankruptcy and/or foreclosure.

- Ponzi Schemes: For some reason, professional athletes seem to be especially susceptible to these schemes. Here are a few recent examples:

A woman who once advised Michael Vick and several other football players has been charged by federal prosecutors with the theft of $3 million from eight victims in a Ponzi scheme, according to the Associated Press. Vick, who recently entered bankruptcy, is filing suit against the woman to recover $2 million.

The Washington Times reported that MLB stars Greg Maddux, Bernie Williams, Johnny Damon, J.D. Drew, Andruw Jones, Carlos Pena, and several other current and former players invested with Allen Stanford.

There are seven former and current NFL players listed among the 3,000 investors who were allegedly fooled into investing $100 million in a Canadian-based Ponzi-type scheme – a pyramid allegedly run by two men who had prior encounters with the law, according to reports from the Vancouver Sun.

- Bad Investments: It could be due to tangible business ventures being more fun than stocks and bonds. However, due to most athletes having very little business background, they have made some terrible investments. Here are some examples Sports Illustrated has provided:

In May of 2007, Drew Bledsoe, Rick Mirer, and five other NFL retirees invested at least $100,000 each in a now-defunct start-up company called Pay By Touch, which said that its “biometric authentication” technology would help replace credit cards with fingerprints, despite the company being wracked by lawsuits and internal dissent.

Rocket Ismail squandered a great deal of money funding various projects, including an inspirational movie, the music label COZ Records, a cosmetics procedure in which oxygen was absorbed into the skin, a plan for nationwide phone-card dispensers, a Rock N’ Roll Café theme restaurant in New England, and three shops called It’s in the Name, in which tourists could purchase calligraphy of names and proverbs.

Michael Vick put $6 million in bank loans towards a car-rental franchise in Indiana, real estate in Canada, and a wine shop in Georgia.

- Divorce – Divorces have proved costly for many people, but they especially seem to hit pro athletes hard. According to the New York Times, polls, studies, and anecdotal evidence show high divorce rates for professional athletes. The report included reasons such as infidelity, women targeting athletes, trophy wives, lifestyles not suited for marriage, and entourages that discourage intimacy. In one example, PGA legend Greg Norman’s 2008 divorce cost him $103 million, according to the Associated Press.

- Attempting To Run A Business – Not every athlete can be like Magic Johnson, who has found success with his urban development company Magic Johnson Enterprises. In fact, the majority of athletes who attempt to run their own business are met with poor results.

Sports Illustrated recently listed the examples of Saints all-time leading rusher Deuce McAllister, whose Jackson, Mississippi car dealership went into bankruptcy and Panthers receiver Muhsin Muhammad, who put his Charlotte, N.C. mansion up for sale on eBay a month after Wachovia Bank filed suit against his entertainment company for overdue credit-card payments.

The most noticeable example in recent history is former MLB All-Star Lenny Dykstra, who was forced to sleep in his car after his magazine, The Player’s Club, proved to be a miserable failure. He filed for bankruptcy in July, reportedly owing between $10 million and $50 million.

- Drug Abuse – In some cases, lots of money leads to lots of partying. In particular, drugs can spell bad news for athletes. Here are some examples:

According to Maxim, Texas Rangers star Josh Hamilton began his career by burning through a signing bonus of $4 million by doing coke and crack and drinking a bottle of Crown Royal a day.

NBA player Chris “Birdman” Andersen spent a great deal of the $289,000 signing bonus in 2001 by partying. In 2006, he was kicked out of the NBA for two years for unspecified drug use and lost his $3.5 million per year salary, according to ESPN.

In 2004, NFL star Ricky Williams lost millions in salary when he left the league after failing multiple drug tests due to marijuana use. He was also forced to pay $8.6 million for breach of contract upon his departure and when he returned in 2006, he still had to serve a 1-year suspension.

- Having Too Many Children – Everyone has the right to have as many kids as they wish. However, not all athletes are responsible parents. Some of them even have multiple children with multiple women. In simple terms, that costs a lot.

One example is former NFL player Travis Henry. According to a recent report in the New York Times, the 30-year-old former running back has nine children, each from a different mother, some born as closely as a few months apart. Henry says that he’s broke and is unable to pay the estimated $170,000 per year he owes in child support.

According to the Atlanta Journal-Constitution, former boxing champion Evander Holyfield has grossed more than $248, but nearly lost his Atlanta, Georgia home due to child support payments believed to total $500,000. That comes in addition to two divorces and multiple failed business endeavors.

- Using The Wrong Advisors – Many players know they need financial help, but choose the wrong people to provide that help.

Whether it was friends from home or predatory scammers, the NFL Players Association says that between 1999 and 2002, at least 78 players lost a total of over $42 million due to trusting financial advisors with questionable backgrounds.

Sports Illustrated listed some examples of such advisors, such as Luigi DiFonzo, a former felon who defrauded such players as Hall of Fame running back Eric Dickerson by claiming to be an Italian count before committing suicide in August 2000. Another example was William “Tank” Black, a disgraced agent who built up a pyramid scheme that took nearly $15 million from at least a dozen players. Another was Kirk Wright, a hedge fund manager convicted of 47 counts of fraud and money laundering for a scheme involving more than $150 million. He had a client list that included at least eight NFL players. He committed suicide in prison.

- Investing Too Much In Real Estate – This seems to be one of the biggest things players put too much money into.

Former Morgan Stanley senior vice president Ed Butowsky told Sports Illustrated that the number one problem for athletes in terms of financial meltdown was “chronic overallocation into real estate and bad private equity.” Butowsky said athletes came to him about these deals more so than anyone else.

CNBC says some stars faced with foreclosure after the housing market collapse include NBA players Latrell Sprewell and Vin Baker and MLB star Jose Canseco.

- Dog Fighting – Spending 18 months in prison for fighting and killing dogs wasn’t the only consequence for Michael Vick’s actions. He also went broke.

In addition to the millions he lost in salary, Vick also spent a great deal of money on legal fees, fines, and supporting family and friends, according to The Smoking Gun. Recently, a judge approved a plan for Vick to repay creditors $20 million after he filed for bankruptcy.

- Stupidity – This seems like an obvious cause of financial woes: acting dumb.

Some recent memorable moronic decisions include Michael Vick’s dog fighting, Plaxico Burress 2-year prison sentence for illegal gun possession and shooting himself at a New York night club in November right after signing a 5-year, $35 million contract, Adam “Pacman” Jones’ multiple run-ins with the law, including his infamous involvement in a brawl and shooting at a strip club, and Michael Phelps being caught smoking a bong, resulting in the loss of his endorsement deal with Kellogg’s and financial support from USA Swimming.

Global Gaming Factory, the company seeking to purchase embattled file-sharing hub The Pirate Bay, is now faced with a claim from a creditor that could force the company to file for bankruptcy protection, according to a report in Sweden’s The Local.

According to a court filing from Advatar Systems, Global Gaming has owed them more than $200,000 since July 25. The filing from Advatar Systems managing director Johan Sellstrom, a former member of the board of Global Gaming Factory, says that Global Gaming Factory is unable to legally pay its debts and “this incapacity can not be regarded as temporary.”

This is not the first obstacle Global Gaming Factory has faced will attempting to acquire The Pirate Bay for $7.8 million and turn it into a legitimate site that pays artists and copyright holders.

On August 21, trading in Global Gaming Factory shares was halted, and the company was recently delisted from the exchange.

What Companies Have the Highest Likelihood of Filing Bankruptcy This Year?

blog@www.castlelaw.net (News Author)10615 — Wed, 30 Sep 2009 08:00:00 EST

A recent report from Audit Integrity has identified some high-profile names with the highest likelihood of filing for bankruptcy protection among publicly traded firms.

This is a list of the ten companies that appear to be the worst off:

1. Hertz – With a great deal of debt financing the auto rental company’s fleet of vehicles, decreasing rental demand does a great deal of damage. The company got some breathing room in May by raising new capital, but Fitch and Moody’s actually cut their ratings for the company in July. Currently, the company’s shares have seen a rally and are more than five times the low of $2 in March.

2. Textron – In the current financial climate, selling business jets is not an easy endeavor. The company said it had a backlog of $2.3 billion this year after canceling a new jet design and seeing severely decreased demand for its other aircraft-related offerings. The company has been able to push back some debt maturities, but the company’s leasing arm has seen a decline in credit quality.

3. Sprint Nextel – The cell phone providers could see a loss of as many as 4.4 million post-paid subscribers during 2009. The problem is made worse by the fact that the company has large amounts of maturing debt over the next few years. Rumors of Deutsche Telekom acquiring the company sparked some hope, but that seems to have faded.

4. Macy’s – Department stores in general seem to have seen a decline. Macy’s will likely continue to see a decline in same store sales. The company has $2.4 billion of maturing debt over the next five years and is attempting to cut costs and has already reduced its dividend.

5. Mylan – Mylan greatly overpaid when it purchased Merck’s generic business in 2007 and the company is now saddled with $5 billion of long-term debt as a result. Between 2007 and 2008, the company saw a loss of more than $1.3 billion, which had a great deal to do with goodwill write-downs. The company could earn $300 million in 2009, but will have to earn much more in the future for its debt to become manageable.

6. Goodyear – Goodyear tires have seen a dramatic decline in demand and the company has a great deal of debt and pension obligations. Further compounding matters is the company’s inability to have proper cost control due to factories being forced to stay open by the United Steelworkers union.

7. CBS – Weak advertising and decreasing license fees have caused the network to see a dramatic decrease in earnings this year. If the trend continues, the company could find it difficult to refinance $3.2 billion of debt coming due over the next five years. It really depends on whether or not the earnings collapse is simply cyclical, or caused by a structural trend in which traditional TV is dying.

8. Advanced Micro Devices – The question of whether or not AMD will ever see a profit again becomes increasingly important each day, as it carries more than $5 billion in long-term debt. The company lost nearly $3 billion between 2007 and 2008 and analysts predict more losses to come in 2009 and 2010. The company’s shares rallied from their February $2 low, but seem to be stuck in a long-term down trend from $40 highs in 2006.

9. Las Vegas Sands – Over the past several years, Las Vegas Sands has over-expanded and over-levered and is now faced with more than $10 billion in debt. Despite now being 13 times their March low, the company’s shares still have an uphill battle. Las Vegas conditions are terrible, Asian expansion is insufficient, and if this trend continues for too long, LVS will find itself in bankruptcy court seeming as if it bit off more than it could chew.

10. Interpublic Group – IPG is one of the largest advertising and marketing companies in the world and has seen a large impact from the global recession. The company’s CEO recently noted that the economic downturn is “proving steeper and more lasting than expected.” The company’s revenues have seen double digit declines and the company’s exposure to General Motors as its largest client hasn’t helped.

Falling Gas Prices Lead Natural Gas Company to Bankruptcy

blog@www.castlelaw.net (News Author)10540 — Mon, 28 Sep 2009 08:00:00 EST

On September 10, PNG Ventures Inc. filed for Chapter 11 bankruptcy protection in a Delaware bankruptcy court, making it the second liquefied natural gas company to file within the same week. The pressure to file is believed to be due to falling gas prices.

In the company’s filing, it said that it was confronted with losses from operations and default under a $36.3 million secured credit facility.

Due to bearish domestic fundamentals, natural gas prices have been forced into 7-1/2-year lows. However, crude, which is more heavily impacted by international factors, has been bolstered during 2009 by increased economic optimism.

Earlier in the week, on September 8, Trident Resources Corp. and its affiliates filed for Chapter 11 bankruptcy, citing similar reasons.

In PNG Ventures’ filing, the company listed assets of approximately $40 million and debt of approximately $44.6 million. The company’s filing also included five affiliates.

Chicago's Bankrupt Sun-Times Likely To Continue Under New Management

blog@www.castlelaw.net (News Author)10506 — Sat, 26 Sep 2009 08:00:00 EST

After the Sun-Times Media Group petitioned for bankruptcy in March of this year, many were concerned about whether or not the paper would continue and, if so, how. Now, six months later, the Chicago Sun-Times is out of bankruptcy and making plans for continuing to print the city's paper. The second-largest print paper in Chicago will be under new leadership but still retain Jeremy Halbreich as its chairman.

Halbreich has said that Chicago can and will be a two-newspaper town, and that both the Sun-Times and the Chicago Tribune can thrive together, since each publication is very different from the other and that each paper has different audiences. In an interview Wednesday, the chairman said that the Sun-Times was the heart and soul of the Chicago people, while the Chicago Tribune was a drier, more official paper of record.

The media group not only consists of the Sun-Times, but also 57 other local or regional newspapers. The group of Illinois newspapers was purchased by Chicago businessman James along with a small group of investors. The papers are still losing money under new management, but cutbacks are slowing the financial troubles for now. The paper hopes to take in a positive cash flow by the end of the year, even while paying for expenses related to its bankruptcy.

One new strategy the Sun-Times is considering in the wake of its bankruptcy is cutting back the number of issues in smaller suburban daily papers - some of which are circulated quite close to one another.

Missouri Auto Industry Struggles After GM Bankruptcy Reorganization

blog@www.castlelaw.net (News Author)10493 — Fri, 25 Sep 2009 08:00:00 EST

What happens when a company as big as GM declares bankruptcy? In many ways, it affects all of us - and even the government. In smaller ways, it can hurt the local auto industry in significant ways. In the case of Missouri, a recent report conducted by the Missouri Automotive Jobs Taskforce has revealed that over the last five years the state has lost 60 percent of its car production and 35 percent of its workforce.

Missouri Governor Jay Nixon was formed and commissioned to file this report in January as a way to better understand Missouri's auto industry and hopefully attract more auto industry jobs. Indeed, the group recommended that Missouri needs to create an environment that is conducive to auto industry needs, such as a "Missouri Center of Automotive Excellence" that would coordinate all state programs and policies related to the auto industry.

However, Missouri also wants to move forward with caution, especially considering the recent GM and Chrysler bankruptcies badly harmed states with economies based in the auto industry. Specifically, the group reported on the affects of the failing auto industry on bigger car-based cities like Detroit, which has perhaps suffered from the hard economic times more than any other metro area. Nonetheless, despite these recent bankruptcies, Missouri wants to continue to be a leading player in the auto industry and make future policies and decision that would attract even more industry jobs.

August Foreclosure Rates Fall

blog@www.castlelaw.net (News Author)10487 — Fri, 25 Sep 2009 08:00:00 EST

According to a report from RealtyTrac released on September 10, the rate of home foreclosures in Missouri continued falling in August, in comparison to August 2008, while the rate increased in Kansas.

In August, the total number of Missouri properties with foreclosure filings saw a decrease of 33.5 percent from August of last year, placing the state 31st in the U.S. in terms of foreclosure activity. The total number of properties facing action was 2,498.

RealtyTrac’s stats also showed that the rate was a 21 percent decrease from July.

The number of properties in Kansas faced with foreclosure saw an increase of 45.7 percent from August of last year to August of this year. The state ranked 35th in the U.S. with 1,056 properties in foreclosure.

The number of foreclosures in Kansas may have been higher than in the previous year, but that total was 19.94 percent lower than it was in July.

RealtyTrac’s nationwide stats showed that foreclosure activity was essentially flat in August from July; however, it was still an increase of 18 percent from August 2008.

Ethanol Maker VeraSun Sells Property After October Bankruptcy

blog@www.castlelaw.net (News Author)10459 — Wed, 23 Sep 2009 08:00:00 EST

After struggling with the rising prices in corn, the main ingredient in making ethanol, the largest publicly traded ethanol company declared bankruptcy in October of 2008. VeraSun filed for Chapter 11 bankruptcy on Oct. 31, after eight years of business, affecting 17 ethanol plants and many workers, including those in the states of Illinois and Missouri.

Now the St. Louis Business Journal reports that VeraSun Energy Corp. has sold 1,600 acres of farmland for $10.5 million in order to fulfill what is outlined in their bankruptcy agreement. Sale manager Schrader Real Estate and Auction Co. Inc. of Columbia City, Ind., did not say who the buyers of the farmland were.

The land involved with the sales included 380 acres in Granite City, which sold for $2.9 million. The land was sold to a local family farmer, thought it was not said who. In Litchfiled, 487 acres of farmland were sold near St. Louis for $3.3 million to three different buyers. The land was also close to I-55. In Danville, Illinois, 733 acres sold for $4.3 million, bought by a neighboring landowner looking to expand their holdings. Those buying the land were a mix of farmers and future investors. Some of the land was located in Madison County and Vermilion County.

Also recently, five plants owned by VeraSun were sold to their producers.

Foreclosure Prevention Efforts Doing Better

blog@www.castlelaw.net (News Author)10453 — Wed, 23 Sep 2009 08:00:00 EST

The Obama administration has put $75 Billion into a foreclosure-prevention program that seems to be making progress. The program is based on a lender-borrower incentive program that has included more than 570,000 trial modifications with a reported 360,000 modifications still in the works.

However, America is still seeing an increase in mortgage defaults with nearly one of every 12 borrowers delinquent on their mortgage. The program also relies on the big banks, Chase, Citigroup, Wells, and Bank of America, to do their part. They are only offering the trial modifications to a small amount of their mortgagees—25% at best.

America will be watching the credit and banking industries as the plan continues on throughout the country.

Bankruptcy Filings for Wealthy Families on the Increase

blog@www.castlelaw.net (News Author)10440 — Mon, 21 Sep 2009 08:00:00 EST

Wealthy families’ bankruptcy filings rose 73% according to the National Bankruptcy Research Center. The increase in filings is due to a failing real estate market that has left many individuals unable to use a loan modification or move their assets. Many have found themselves upside down in their mortgage and facing a possible foreclosure.

It seems that the risk of moving all of their money into investments has left these individuals with little to fall back on. From July 2008 to July 2009, sales of homes with a sale value of between $1 million and $2 million decreased 23%.

Perhaps America has further evidence that the recession has humbled everyone—and bankruptcy has been there to help every step of the way.

Bankruptcy Up 22% In August From 2008

blog@www.castlelaw.net (News Author)10433 — Sun, 20 Sep 2009 08:00:00 EST

If you are thinking about declaring bankruptcy, you are certainly not alone. The national bankruptcy statistics have been released for August, and rates are up again from last year. The Automated Access to Court Electronic Records show that consumer bankruptcy rates are up by 22 percent in August of 2009, as compared with bankruptcy rates from August of 2008. There were 954,911 bankruptcy filings in August of this year, compared to 703,732 in August of last year.

Robert Lawless, a professor of law at the University of Illinois, predicts that 1.45 million individuals will file for bankruptcy this year, numbers that have not been seen since the bankruptcy reform that took place in 2005.

The reasons for the significant increase in bankruptcy filings continue to be tied to the weak economy and the housing crisis. More than anything else, job loss, layoffs, and the loss of regular income has lead to a growing number of those petitioning for bankruptcy, although other common reasons still include divorce, medical emergencies, failed business ventures, and other unexpected events. Job loss can also lead to the loss of health insurance - a loss that could lead to bankruptcy in the event of a medical emergency. Still, the states suffering from the highest numbers of bankruptcies are also the states suffering the worst housing issues.

Lawless expects that bankruptcy filings will continue to be high even after the economy continues to improve.

Annie Leibovitz: Is Bankruptcy An Option?

blog@www.castlelaw.net (News Author)10432 — Sun, 20 Sep 2009 08:00:00 EST

When is bankruptcy the best option? Currently, some are wondering if it might not be the best option for famed celebrity photographer Annie Leibovitz, who has been plagued with a number of stressful and public financial problems.

Leibovitz has been known for her stunning portrait photos for decades, including cover shots for Rolling Stone, Vanity Fair and Vogue magazines. However, she has been faced with a lawsuit involving possible copyright infringement and has also lives an extravagant lifestyle, with at least four expensive properties in her name, including three in Manhattan. Having two children later in life using a variety of non-traditional fertilization techniques might have also added to her debt, while the recent recession surely hurt her portfolio.

Recently, Leibovitz has defaulted on a loan for $24 million from Art Capital, putting her entire art collection and her estates at stake. Many are wondering, should Annie Leibovitz choose bankruptcy? According to Gawker, her creditors could take control of her $50 million photo archive, her homes in Rhinebeck, N.Y., her home in Greenwich Village, as well as 12 percent interest on the loan and 25 percent commission on the sale of the archive. And - Leibovitz's creditors may be able to file for involuntary bankruptcy.

For now, lending agency Art Capital and Leibovitz have decided to extend the life of the loan and give Leibovitz another chance to do well by her loan, saying that they have decided on the "withdrawal of the suit... filed against Ms Leibovitz on July 29, 2009 and extends the maturity date for the 24 million dollar loan."

Historic New York Restaurant Files for Bankruptcy

blog@www.castlelaw.net (News Author)10381 — Wed, 16 Sep 2009 08:00:00 EST

Historic New York restaurant Tavern on the Green, which is considered a Central park landmark, has filed for Chapter 11 bankruptcy protection.

The 75-year-old restaurant’s filing comes just four months before the license is to be handed over to a new operator.

Jennifer Oz LeRoy, chief executive for the restaurant, blames the filing on the current economic conditions and the decision of New York City to give the license to another operator.

The new license is to be handed over to Dean J. Poll, who runs the Central Park Boathouse restaurant.

A total of 20 creditors are listed in the federal bankruptcy filing.

Poll, who will take control of the restaurant on January 1, plans to renovate with green technology. Originally, the restaurant building, which dates back to the 19th century, housed sheep.

LeRoy’s father, Warner LeRoy, took over the restaurant in 1976. He died in 2001.

Samsonite Co. Stores Luggage Maker Filing for Bankruptcy

blog@www.castlelaw.net (News Author)10360 — Mon, 14 Sep 2009 08:00:00 EST

Samsonite Co. Stores has started on its path to bankruptcy protection. They currently have $233 million in assets and $1.5 billion in debts. The court papers show a reported $920,301 owed to 20 of the largest creditors.

The parent company, Samsonite Corp, is bringing in less in revenue than the store unit owes in debts. Their revenue for 2007 was $1.07 billion. Samsonite Corp, however is not filing for bankruptcy protection.

According to their chief financial officer, the decline in sales has been attributed to the economy. The recession has caused a slow in travelers and, thusly, a decline in the need for luggage and travel items.

Samsonite has been guaranteed a 105% recovery of the value of the merchandise that has yet to be sold.

Michael Vick's Bankruptcy Plan is Approved

blog@www.castlelaw.net (News Author)10337 — Fri, 11 Sep 2009 08:00:00 EST

Michael Vick’s bankruptcy plan for him to repay his creditors $20 million has been approved. The bankruptcy had come as a result of years of overspending with no budgeting. With his Chapter 11, he must retain a financial planner to help him with his finances.

Vick said he was relieved to be able to start his life again. He seemed pleased with his counsel, the courtroom, and the outcome. Everyone in the court room also seemed confident that Vick would be able to keep up with his payments and not find himself in financial trouble again.

Vick is one of a number of celebrity cases of bankruptcy. This case, like the others, just proves that regardless of your stage in life, operating without a clear idea of your finances and your budget can lead you to financial disaster.

Crestwood Developer Responsible for Over 15 Foreclosures

blog@www.castlelaw.net (News Author)10313 — Thu, 10 Sep 2009 08:00:00 EST

Joseph Baumeister, the owner of a Crestwood development company, was sentenced to jail after pleading guilty to bank fraud. He confessed to using straw purchasers and false information to collect homes and commit mortgage fraud.

From January 2007 to October 2008, Baumeister bought 16 homes under false pretenses. His company, Prophet Development, used inflated prices and fibbed about improvements on homes in order to charge buyers more money—and he put the extra money right in his pocket.

He was sentenced to 37 months in federal prison. He also has to repay $364,504 of the debt that he owes.

Crestwood Development Company Owner Gets Caught Committing Fraud

Charter Continues through November with Bankruptcy Plan

blog@www.castlelaw.net (News Author)10295 — Tue, 08 Sep 2009 08:00:00 EST

Charter Communications Inc filed for Chapter 11 bankruptcy protection back in March with plans to emerge from the proceedings in late August or early September. It seems that Charter will continue to control its own bankruptcy until November 22nd after a controversy called for an extension in their reorganization plan.

Charter, a St. Louis based company, will continue under the oversight of their turnaround specialist and adviser but must come to a conclusion that is approved by its principal lender, JP Morgan Chase. The bankruptcy was filed in an attempt to cut $8 billion out of a $21 billion debt.

When asked for any comments, Charter only had positive things to say about the restructuring. The bankruptcy is regarded as good news and an opportunity to be everything that they can be for their customers, which is further evidence that the common conceptions about bankruptcy turn out to be untrue. There are also continuing employee benefits and customer discount programs in an attempt to maintain their business motto.

Kansas City Man's Golf Club Sold in Foreclosure

blog@www.castlelaw.net (News Author)10243 — Wed, 02 Sep 2009 08:00:00 EST

Quintero Golf & Country Club in Phoenix, Arizona’s West Valley, the dream development of Gary McClung, a businessman from Kansas City, Missouri, is scheduled to be sold in a foreclosure auction on October 7.

In 2001, McClung and his wife, Leona, entered the golf scene in West Valley with the completion of a Rees Jones-designed golf course. By 2002, they were working closely with golf legend Greg Norman to build a second course and had sold more than 200 invitation-only memberships and a few dozen lots priced up to $2 million.

McClung, who had been the president of Midway Ford/Sterling Truck Center in Kansas City, the largest Ford truck dealership in the U.S., said in 2006 that he and his wife had created the 828-acre Quintero in celebration of their financial success and love for golf. They recruited colleagues from Ford and friends from the Midwest to help them.

The endeavor seemed to be heading in the right direction. Travel & Leisure magazine named Quintero one of the Top 100 Golf Course Communities and Golfweek magazine named it one of the Top 100 Resident Courses. McClung had been named to an exclusive advisory committee of the Environmental Institute for Golf, alongside such professional golfers as Sergio Garcia, Greg Norman, and Vijay Singh.

Foreclosures Are Declining In Parts of Missouri Despite a National Increase

blog@www.castlelaw.net (News Author)10123 — Wed, 02 Sep 2009 08:00:00 EST

According to a report from RealtyTrac, foreclosure filings continue across Christian County, Missouri, but are not as prominent as they were in 2008.

For the first half of 2009, there were 79 foreclosure filings in the county, which is a decrease of 28 percent from the 100 the county had during the same period in 2008.

That accounted for one filing out of every 375 households in the county, which ranked it 11th in Missouri for foreclosures.

Across the entire state of Missouri, foreclosures saw a decrease of 17 percent at 13,880 for the first half of 2009, in comparison to the first six months of 2008, in which there were 17,594 filings. Nationally, filings saw an increase of nine percent from 2008.

While foreclosures may be down, short sales are increasing. See our blog for more information and to post your opinion.

Missouri-based Spectrum Brands Exits Bankruptcy

blog@www.castlelaw.net (News Author)10194 — Mon, 31 Aug 2009 08:00:00 EST

In February of 2009, company Spectrum Brands petitioned for Chapter 11 bankruptcy following a missed loan payment that amounted to $24 million. The troubled company, which makes Remington shavers, pet supplies, personal products, lawn care products, and batteries as well as a number of other consumer products, declared just over $10 billion in assets and $4.4 million in debts. The company blamed the ongoing global recession on their money woes and decision to file bankruptcy.

"Our businesses have attractive growth prospects that have been encumbered by the level of debt the parent company is carrying," said Spectrum Chief Executive Kent Hussey. "After careful consideration, we decided that the approach announced today would be the most effective and expedient path for us."

Now, however, just eight months later, the company that has operations in Overland, Missouri, and Bridgeton, Missouri, is exiting bankruptcy. The exit was aided by $242 million from a number of banks and financial institutions including GE Capital, who helped the troubled company meet the closing demands of their bankruptcy reorganization plan.

The company will issues an estimated three million shares of a new common stock to debtors-in-possession, while another 27 million shares of new stock will be traded on the Pink Sheets. Its former shareholders will get nothing from the bankruptcy reorganization and its former common shares will be canceled.

Spectrum told reporters that it eliminated $840 million of subordinated debt in the Chapter 11 reorganization, and exits with substantially improved capital structure.

Kansas City Personal Bankruptcies Jump 25 Percent, Missouri 22 Percent

blog@www.castlelaw.net (News Author)10192 — Mon, 31 Aug 2009 08:00:00 EST

Across the country in July bankruptcy filings skyrocketed an unbelievable 34 percent - but how are Missouri and Kansas City faring in these difficult financial times as far as personal bankruptcies are concerned? The answer is: better, but not that much better. According to the Kansas City Star and kansascity.com, personal bankruptcy filing rates have increased 25 percent in Kansas City and the surrounding Missouri area.

In the last eight months in the Western District of Missouri there were 7,539 bankruptcy filings compared with 6,179 during the same period last year - and increase of 22 percent.

The last time that bankruptcy rates have been so high in Kansas City and in Missouri was just before the bankruptcy reforms four years ago and the implementation of the Bankruptcy Abuse Prevention and Consumer Act in October 2005. Economists blame a few different current events for the surge in Chapter 7 and Chapter 13 personal bankruptcy filings, including the recent recession and economic crisis, the housing crisis and the rise in foreclosures, the increasing number of upside-down mortgages, the average American's increasing amount of debt, the rising rate of unemployment, and the consumer's general lack of confidence.

Nationwide, according to the American Bankruptcy Institute, consumer filings numbered 126,434 in July, an 8.7 percent increase since June and a 34 percent increase in comparison to July of 2008. It is also interesting to note a disproportionate number of individuals filing for Chapter 7 liquidation bankruptcy in comparison to Chapter 13 reorganization bankruptcy.

Smurfit-Stone Container Corp Files Chapter 11, Closes Plants

blog@www.castlelaw.net (News Author)10185 — Mon, 31 Aug 2009 08:00:00 EST

According to a report in the Hartford Courant newspaper, under its Chapter 11 bankruptcy filing, packaging company Smurfit-Stone Container Corp. plans to close box making plants in Portland, Connecticut, St. Joseph, Missouri, and Mansfield, Ohio.

The report said that employees had already been informed of the planned closing. Currently, the plan is for the Portland plant to close in September with the work transferred to a Mansfield, Massachusetts plant. The employees of the closing plants will receive severance.

The company filed for Chapter 11 bankruptcy protection in January of this year.

Smurfit-Stone is a mainly St. Louis-based manufacturer of corrugated container and containerboard that operates facilities for recycling corrugated containers, folding cartons, and recovered paper in the St. Louis area.

Eastern Missouri Developer Made Responsible for Foreclosures

blog@www.castlelaw.net (News Author)10122 — Wed, 26 Aug 2009 08:00:00 EST

A real estate developer from eastern Missouri convicted of mail and bank fraud has been ordered to pay $34 million to more than 100 people, some of whom had their homes go into foreclosure.

The order was part of the sentence handed down in federal court on August 6 against 47-year-old O’Fallon, Missouri resident Robert Hartmann, who also received a sentence of two years in prison.

In 2005, Hartmann’s real estate business collapsed, causing banks and investors to be left with properties in the St. Louis area that never got redeveloped or went into foreclosure.

According to the prosecution, Hartmann claimed he would aid one woman with keeping her home, but instead he increased the loans on the woman’s property. He required that she pay him in a rent-to-own arrangement. However, she was forced out of the home anyway because he failed to continue putting money toward her mortgage.

Lincolnshire IL Steel Tube Maker RathGibson Files For Bankruptcy

blog@www.castlelaw.net (News Author)10098 — Tue, 25 Aug 2009 08:00:00 EST

According to Bloomberg.com, steel tube maker RathGibson has filed for reorganization bankruptcy following months of financial troubles at the Lincolnshire, Illinois company. The bankruptcy petition is backed by the company's lenders. Lenders own about three-fourths of the company and will receive the majority of the company's stock during the bankruptcy reorganization process.

Court records show that RathGibson may have up to 5,000 creditors and debts that amount to $319 million. The company has roughly $305 million in assets. The plan, according to CFO Jon Smith, is to file quickly, make a realistic plan, and quickly emerge from Chapter 11 bankruptcy. The financial troubles were blamed on microeconomic conditions.

"The debtors have been continuously exploring their options for addressing their liquidity and capital structure issues with their lenders, noteholders and other constituents," Smith said in court papers filed Monday with the U.S. Bankruptcy Court.

With the approval of the bankruptcy court, RathGibson will borrow up to $80 million from affiliates of Wayzata Investment Partners LLC, Eaton Vance Corp, and BlackRock Inc. This money will help with operation costs as the company finds its bearings in this difficult economy.

Troubles started for RathGibson earlier this year when a drop in demand for steel tubes created cash flow problems and then credit line issues. In May of 2009, the company was in danger of defaulting on a $55 million line of credit.

RathGibson was founded in 1999 and sold in 2007.

Hannibal: Historic Rockcliffe Mansion Owner Declares Chapter 13 Bankruptcy

blog@www.castlelaw.net (News Author)10064 — Fri, 21 Aug 2009 08:00:00 EST

The historic Rockcliffe Mansion, which was built by lumber barons at the beginning of the 20th Century, has had a troubled past of late and will be passing hands once again after its recent owner declared Chapter 13 bankruptcy.

According to US Bankruptcy Court records, Rockcliffe Mansion owner Rick Rose filed for Chapter 13 bankruptcy protection on April 30. Among his assets were the famed Hannibal mansion, a bed and breakfast, a rental property, and a list of personal property. The personal property listed included between $80,000 and $120,000 worth of Rockcliffe Mansion antiques, including bed linens, quilts, and clothing.

The historic contents of the house were set to be auctioned off earlier this month by St. Louis antique dealer John Robinson III of Finches by Robinson, but the bankruptcy proceedings led to a cease and desist letter from Palmyra State Bank.

In 2005, Rose took out a $325,000 loan from Palmyra State Bank in order to buy the Missouri mansion, which is on the National Register of Historic Places. There is also a second mortgage on the property for $60,000 with Raible and Brown Insurance of Hannibal.

Recently, a man from the suburbs of St. Louis, Kenneth Marks of Maplewood, Missouri, has made an offer to buy the large house and everything inside of it for $700,000. A hearing about the proposed purchase has been set for September 1, and, if it is approved by the bank, the closing would take place within 60 days.

Washington Park: Entire Southwestern Illinois Town Files For Bankruptcy

blog@www.castlelaw.net (News Author)9967 — Thu, 13 Aug 2009 08:00:00 EST

A small village in St. Clair County, Illinois, with a population of about 6,000 is seeking bankruptcy protection in light of mounting debts. Bankruptcies for towns, villages, and cities are very uncommon, but the recently economic downturn has led to several municipal bankruptcies and reorganizations in the last year.

In the village of Washington Park, the problem seems to stem from decades of mismanagement and poorly kept records as well as a lost lawsuit involving the town's $30,000 strip club licenses. The judge ruled the licensing practices unconstitutional. Now, the town is struggling with $80,000 in lawyer fees as well as $30,000 less in income each year. The small town also owes money for a number of government investigations.

The village also suffered from two different embezzlement issues. Dorothy Triplett, the town's former payroll clerk, stole almost $144,000 from the town and pled guilty to the offense last spring. Linda Connor, a former assistant to the mayor, admitted to stealing more than $300,000 of the town's money.

According to its bankruptcy filing, Washington Park owes creditors over $1 million and has less than $50,000 in assets. Some of their creditors include the Illinois Municipal Retirement Fund, Illinois Department of Employment Security, and Johnny "Chico" Matt, who sued the town 2004 for discrimination based on political affiliation.

"Every time I turn around, they're hitting us with suits," Mayor John Thornton said. "And on top of the lawyers, we got people stealing from us and the feds raiding."

Chicago Cubs To Benefit From Declaring Bankruptcy?

blog@www.castlelaw.net (News Author)9638 — Wed, 29 Jul 2009 08:00:00 EST

A national baseball team has not declared bankruptcy for decades - but the corporate owner of the Chicago Cubs is considering filing for Chapter 11 bankruptcy in order to speed the sale of the team and smooth the transition from owner to owner. Legally, the move to petition for bankruptcy would make buying the Chicago Cubs a simpler and safer idea, as a Chapter 11 bankruptcy would protect a future owner from old claims by old creditors moving forward.

Presently, the Chicago Cubs are owned by Tribune Company, which filed for bankruptcy protection last December and which also owns the Chicago Tribune. As part of their reorganization plan, the Cubs are being sold to pay off other Tribune debts. The entity who buys the Cubs in the wake of the bankruptcy would not suffer any effects of the bankruptcy filing.

Although declaring bankruptcy is not vital for the Cubs' survival, and although the popular Chicago baseball franchise as a whole is not in financial trouble, the one-to-two day petition for Chapter 11 bankruptcy would hasten a sale and help Tribune Co.'s continued survival. As a pre-packaged bankruptcy, the Cubs would be able to reemerge from their bankruptcy in a few short weeks.

Currently, the Ricketts family is interested in buying the cubs, Wrigley Field, and other related Chicago Cubs assets for a rumored $900 million.

The Seattle Pilots (now the Milwaukee Brewers) declared Chapter 11 bankruptcy in 1970.

Illinois Chrysler Plant Reopens In Belvidere After Bankruptcy

blog@www.castlelaw.net (News Author)9620 — Tue, 28 Jul 2009 08:00:00 EST

The Illinois Associated Press and the Rockford Register report that a local auto assembly plant owned by Chrysler is re-opening its doors as part of the company's reorganization in the wake of a Chapter 11 bankruptcy in May. The auto plant, which makes Dodge Calibers, Jeep Patriots and Jeep Compasses, is expected to boost the local economy, increase morale, and start a new chapter for the troubled American car company, although about 1,000 workers at the plant will not return to work.

The Illinois car assembly plant shut its doors earlier this year on May 1 - just a day after Chrysler LLC filed for Chapter 11 bankruptcy protection. Over the next few months, the car company reorganized and streamlined its business, cutting jobs, changing ownership, and transitioning to bare-bones dealerships and management.

The Boone County plant employed 2,700 people in Belvidere, and the abrupt closing of the plant and bankruptcy was a blow to the already-struggling Illinois economy. Now 1,700 people will return to work this week, starting on Monday, July 27. At the initial closing of the plant after bankruptcy, some older workers were offered retirement packages while others were transferred to nearby plants, such as from St. Louis.

The closed plant even affected those not associated with the auto industry, such as the owner of a gas station along U.S. 20 near the factory. In addition several supplier operations employing over 1,000 people can also resume business.

Jerry Butitta, owner of Jerry Butitta Automotive Services in Belvidere, said, "It's not just Chrysler going back to work, it's the whole community."

The Granite Source of Missouri Files For Chapter 7 Bankruptcy

blog@www.castlelaw.net (News Author)9495 — Mon, 20 Jul 2009 08:00:00 EST

According to the Springfield Business Journal, Springfield, Missouri, is still seeing a 20 percent increase in business bankruptcy filings - both filings for reorganizations and filings for liquidations. A case that perhaps best illustrates the bankruptcy troubles for Misosuri businesses may be The Granite Source of Missouri, LLC, which has been troubled by bankruptcy since the beginning of the economic crisis.

Founded by Scott and Tracy Hardwick in 1999, the Missouri granite company began its life as Springfield Granite. However, a reorganization bankruptcy at the end of 2006 saw the company's assets sold to Sheila Collins. However, just a few years later, the newly-named Springfield Granite-Plus is once again in financial trouble. Collins decided to file for Missouri personal Chapter 7 bankruptcy in June and sold the assets of the company back to the Hardwick family in February.

Why is this granite company having trouble finding success? Although Collins had initial business and received several awards for her business, the drop in new construction left her high and dry - and leaving bankruptcy to be her best last choice. There simply wasn't enough demand for her product. And like many small business owners, Collins dipped into her own personal assets in order to try and save her operation. Her personal bankruptcy cites "primarily business debts" of more than $1 million with assets between $100,000 and $500,000.

In Spingfeild, MO, Chapter 7 liquidation bankruptcy filings are up 33 percent from last year. Experts point to a weak economy and job loss as two main factors in the increase.

Automatic Stay Lifted, Plaza Square Apartments Facing Foreclosure In St. Louis

blog@www.castlelaw.net (News Author)9427 — Tue, 14 Jul 2009 08:00:00 EST

According to the St. Louis Business Journal, the largest apartment complex in downtown St. Louis, Plaza Square Apartments, is again facing foreclosure. Taking up four acres of land, the building lies with Chestnut Street to the south, Olive Street to the north, 15th Street to the east and 17th Street to the west. It is made up of five building that hold well over 900 apartments. The apartment building, which is owned by Urban Developers, LLC, was originally facing foreclosure in October of 2007 - a foreclosure that was halted by an automatic stay after the company filed for bankruptcy just 24 hours before.

Now, however, the automatic stay has been lifted as of June 22 by U.S. Bankruptcy Judge Charles Rendlen, and foreclosure looms again. This time, the foreclosure sale will take place on the steps of the Civil Courts Building in St. Louis at noon on July 28.

The automatic stay was lifted after Urban Developer's lender, Natixis Real Estate Capital, Inc., asked the court to move the process out of bankruptcy. Urban Developer did not object to the request.

Urban Develop bought the property in 2004 for $22 million - and still owes approximately $21 million. Since 2004, the building owners have dealt with a number of issues with the complex, including failed building inspections and troublesome elevators.

The large apartment buildings are being marketed actively and have been since roughly May. Early reports say that at least two prospective buyers are interested in buying the property, although bids amounts are unknown.

Evanston, Illinois, Developer Files Individual Chapter 7 Bankruptcy

blog@www.castlelaw.net (News Author)9394 — Sat, 11 Jul 2009 08:00:00 EST

Struggling to survive the housing crisis, fighting multiple lawsuits, and deep in debt, real estate developer Thomas Roszak has filed for individual Chapter 7 bankruptcy. In addition, some of his businesses are also filing for Chapter 7 liquidation bankruptcy.

According to the Chicago Sun-Times, the Evanston builder has a number of unfinished constructions on his hands, from an unfinished Sienna Court Condominium complex at 1720 to other structures at 1415 Sherman Avenue, 1210 Chicago Avenue and 1572 Maple Avenue. In some of the cases, construction has not been finished on the buildings, while in others, condos are simply not selling like they were a handful of years ago.

In addition, Roszak is facing a number of lawsuits related both to his building businesses and to his debt. Two years ago, one of his parking garages collapsed under one of three finished Sienna condominium buildings - and now Federal Insurance Company is seeking $1 million in damages. Finally, an unfinished condo on one of his properties is making access to three other buildings difficult to residents, especially those with disabilities.

In a written statement from Roszak, he praises his company's completed projects and points to dropping housing prices and home values as the cause of his troubles. In his personal bankruptcy, Roszak claimed between $50 and $100 million in debts and between $1 million and $10 million in assets. His business, Roszak/ADC, claimed between $10 and $50 million in debts and less than $50,000 in asserts.

RiseUp Magazine Files For Chapter 7 Bankruptcy In Missouri

blog@www.castlelaw.net (News Author)9195 — Sun, 28 Jun 2009 08:00:00 EST

Facing multiple lawsuits, the short-lived RiseUp magazine company, RiseUp Publications, has filed for Chapter 7 bankruptcy in Kansas City, Missouri. The magazine, which focused on race relations, only appeared for six weeks in 2008 before running into financial difficultly.

The magazine, which is owned by Frank and Janice Ellis of Ellis Management Marketing Group Inc., was published and inserted into local newspapers such as the Kansas City Star, and reached 4 million readers at one point in its existence. The Washington Post, New York Daily News, Chicago Tribune, and other papers briefly carried the magazine.

However, two different lawsuits earlier this year solidified the fact that the publication was in trouble: the Kansas City Star claimed that RiseUp owed them $2.2 million while a California newspaper chain is seeking the $93,000 that they are owed.

When RiseUp filed for bankruptcy on Wednesday in the US Bankruptcy Court of the Western District of Missouri, the company claimed liabilities between $1 million and $10 million, assets of less than $50,000, and fewer than 50 creditors.

Some contend that the magazine was briefly popular when Barack Obama's presidential nomination was top news, and that RiseUp also suffered many of the same problems facing print publications across the country.

Janice Ellis, a businesswoman who once ran for Mayor in Kansas city, had this to say of the magazine: "I started RiseUp because I wanted to provide a readily accessible tool to help us solve some of the problems we face as a society when it comes to race relations."

Knight-Celotex Files For Chapter 7 Bankruptcy In Northfield, Illinois

blog@www.castlelaw.net (News Author)9175 — Fri, 26 Jun 2009 08:00:00 EST

Although building products manufacturer Knight-Celotex originally filed for Chapter 11bankruptcy, which would allow the Northfield, Illinois, company to reorganize and remain open, the company has now switched to a Chapter 7 bankruptcy filing, which involves liquidation.

Knight-Celotex, which makes fiberboard insulation sheathing and sound-deadening materials, originally declared bankruptcy on April 6, 2009, after defaulting on a $34 million dollar loan from Bank of America. At the time that they filed, the company had $357,000 in cash and inventory valued at $7.2 million. Revenue in 2008 was $79 million.

The case was filed in Chicago, Illinois at the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division. The case is being overseen by US Bankruptcy Judge Pam Hollis. This week, Hollis fielded an emergency request by Bank of America to switch the bankruptcy proceedings from Chapter 11 to Chapter 7 after it was discovered that Knight-Celotex CEO James Knight was resigning from his position. Bank of America also told Hollis that $1 million in unauthorized expenses were incurred.

The Court appointed Mr. Barry A. Chatz, Attorney at Law with the firm of Arnstein & Lehr, LLP as Trustee. Chatz believes that there is strong interest in the company and hopes that Knight-Celotex will be sold soon. The Knight-Celotex plant in Danville has suspended operations, as officials wait and hope to find a buyer. The company's vice president has told workers that they would work out payroll and benefits issues in the coming days.

Illinois Foreclosures Up 54% From A Year Ago

blog@www.castlelaw.net (News Author)9146 — Thu, 25 Jun 2009 08:00:00 EST

For those in Illinois affected by the recent economic crisis or for those in Illinois who are in upside-down mortgages or in danger of losing their houses, the news from RealtyTrac is mixed this month.

RealtyTrac, the largest online real estate marketplace, reported that an estimated 13,647 homes across Illinois went into foreclosure in April of 2009, a drop of a little over ten percent from the numbers in March, when over 15,000 houses received a foreclosure filing in Illinois. However, although the number of foreclosures dropped over the last month, rates are still through the roof, up 54 percent from last April.

Compared to the national numbers, Illinois is also doing worse than the country as a whole on average. Foreclosure rates were static between March and April of 2009, and up about 32 percent in comparison to April 2008. One in 374 homes across the United States received a foreclosure filing in April of this year, the highest rate ever seen since RealtyTrac began recording foreclosure statistics and rates.

The state suffering the most during the recent foreclosure crisis is Nevada, where the rate of foreclosures is a staggering one in 68 homes.

What caused the foreclosure crisis? Over the last few years, mortgage companies began to loosen their standards for issuing home loans - to the point where many people who would not normally be qualified to buy a home did. The greed of the financial industry left many families in houses they couldn't afford. At the same time, the economic crisis caused a rise in unemployment and a stranglehold on credit - two problems that are causing many families to fall behind on their mortgage payments and declare bankruptcy.

John Deere Home Faces Foreclosure In Moline, Illinois

blog@www.castlelaw.net (News Author)9077 — Mon, 22 Jun 2009 08:00:00 EST

In the recent economic crisis, it is not just middle-class families who are struggling with their mortgage and struggling to keep their homes - this June, two historic buildings in Moline, Illinois are also facing foreclosure due to the current financial times. On July 5, Sauk Valley Bank will take repossession of a former home of John Deere as well as the home of his granddaughter, located on 11th Avenue in Moline, Ill.

The home was purchased by Roger Colmark of Sterling, Ill., for $100 in 1996. During the sale of the property, it was agreed that Colmark would renovate the home as a bed-and-breakfast on the bluff. However, more than a dozen years later, the renovations have never been completed and the home is in foreclosure.

Moline Mayor Don Welveart is determined to keep the project going under a different contractor, saying that the house has improved with the addition of new windows and a new roof, and that the space could be turned into a functioning property with a little more work.

Colmark is in debt due to a number of related loans as well as a number of fines from the city because of his use of unlicensed contractors. When asked, he cited red tape, delays, and a fire as some of the many reasons he ran out of money and could not complete the project as promised and avoid foreclosure. Colmark claims that it took him seven years to gain approval of the State Board of Historic Preservation in order to install an elevator in the building.

May Bankruptcies Reach 6000 Per Day

blog@www.castlelaw.net (News Author)9058 — Sat, 20 Jun 2009 08:00:00 EST

If the pace continues as predicted, commercial and consumer bankruptcies could reach a staggering $1.5 million in 2009 - according to an Automated Access to Court Electronic Records report earlier this month. This number would be much higher than in previous years - with the exception of 2005, when many rushed to declare bankruptcy before changes in the bankruptcy laws took place. Just over one million people declared bankruptcy last year.

The Automated Access to Court Electronic Records report may be showing the affects of recent job losses across the country, with a rising unemployment rate that could see double digits and that could easily affect bankruptcy filings. These job losses paired with other recent economic woes such as hard-to-get credit, a poor housing market, upside down mortgages, and shrinking retirement accounts will not bode well for the already overwhelmed bankruptcy courts in Illinois and Missouri.

Robert Lawless, professor of law at the University of Illinois, told the media that while credit cards used to help families through rough financial patches, that support is no longer there.

In May, bankruptcy filings were taking place at a break-neck rate of 6,000 per day across the United States, with almost 400 commercial filings per day. Many economists are concerned that consumer bankruptcy filings will lead to more commercial bankruptcy filings in future months. Still, filing for bankruptcy may be the best choice for families and individuals facing insurmountable debt, pressure from creditors, and few options.

Homeowners Lose In Senate Bankruptcy & Mortgage Modification Vote

blog@www.castlelaw.net (News Author)8507 — Mon, 11 May 2009 08:00:00 EST

After months of debate, the United States Senate voted against allowing bankruptcy judges to modify mortgages and delinquent loans in bankruptcy court. Advocates of the plan said that the bill would have at least temporarily stalled the spiking number of foreclosures and helped the economy back to its feet. Alternatively, those who opposed the bill feared it would harm already-reeling banks.

The bill did not pass due to a 51-45 vote. Similar cramdown provision legislation passed in the House last month.

The Obama administration hoped that giving bankruptcy judges the power to modify loans would encourage loan sevicers to negotiate with borrowers to find a long-term payment solution and save many from facing foreclosure and bankruptcy. "Cramdowns," housing advocates said, would give lenders and banks more reason to deal with struggling homeowners.

Banks and other financial institutions lobbied against the bill, saying that giving bankruptcy judges more power would raise interest rates and make an already erratic market even less stable. Others added that it would give an unfair advantage to those who are not making loan payments, while everyone in the economy is struggling.

Although the bankruptcy reform leg of Obama's overall plan to stop foreclosures has stalled, other areas of the plan are in full swing. Three out of four mortgage servicers are participating in a loan modification program already, in which homeowner mortgages are lowered to 31% of troubled family's incomes. An estimated 134,000 home mortgages were modified in March - a much larger number than usual.

Over 8 million Americans are in danger of foreclosure currently - and scholars believed that this bill could have prevented an estimated 1.7 million families from losing their homes.

Illinois Attorney General Sues Debt Settlement Firms That Often Make Debt Worse

blog@www.castlelaw.net (News Author)8492 — Sat, 09 May 2009 08:00:00 EST

Debt settlement companies are profiting from the country's recent economic crisis - but, unfortunately, some are taking advantage of those struggling with credit card debt. Although some can help consumers consolidate or negotiate debt, many charge exorbitant initial fees that plunge users deeper into financial trouble. Even worse, some debt settlement companies do little or no good in regards to lessening debt.

Now, however, Illinois Attorney General Lisa Madigan and Acting Secretary of the Illinois Department of Financial and Professional Regulation (IDFPR) Michael T. McRaith have filed two lawsuits against debt settlement companies that Madigan says uses deceptive marketing techniques on television and on the internet and that do not go through with their promises to alleviate debt.

One lawsuit has been filed against SDS Corporation's top executives, including Bruce Hood, Raymond Dorso, and Joanne Garneau. The other lawsuit has been filed against Debt Relief USA and the President of Debt Relief USA, Kelly Reilly.

Although many debt settlement companies say that they are a valid alternative to declaring bankruptcy, in some cases, they simply put customers in a worse situation. After charging large up-front fees and advising those in debt to halt credit card payments, they will often take months before beginning negotiations with credit card companies - often times, it is too late by then to save clients from the bankruptcy that they had been avoiding.

Madgian says that both companies violate the Illinois Consumer Fraud and Deceptive Business Practices Act, putting forth that the debt settlement businesses do not help consumer credit scores or alleviate debt issues.

Meadowbrook Farms Coop May Reopen Soon After Chapter 7 Bankruptcy

blog@www.castlelaw.net (News Author)8488 — Fri, 08 May 2009 08:00:00 EST

A month after closing the doors of its pork processing plant and filing for Chapter 7 bankruptcy, Meadowbrook Farms Cooperative is now considering two perspective buyers who could give the innovative hog processing plant a second chance. The two companies considering the pig facility will be touring the plant in the coming weeks - the 600 workers employed there were laid off in January, just weeks before the company declared bankruptcy.

Former Meadowbrooks CEO Richard Klene has said that finding additional financing to stave off bankruptcy was impossible due to the recent poor economy - but that there were a number of exciting possibilities in the pork processing industry moving forward.

Trustee Laura Grandy of the firm Mathis Marifian Richter Grandy of Belleville is in charge of liquidating Meadowbrook Farms' assets in order to pay back creditors. While a number of the company's vehicles have already been sold to clear some of their debt, Grandy plans to keep as much of the equipment at the plant as possible to create an attractive deal for potential buyers looking for a turnkey processing plant that they can open quickly and without making many other purchases.

The plant is only five years old - making the facility up-to-date and equipped with newer furnishings and machinery. Over the last five years, the plant produced 150 million pounds of meat annually.

Originally, the Co-op was owed by about 200 hog farmers from around Illinois. The plant was meant to save hog farmer's money and give them more control over their products.

Chernin's Shoe Outlet Running After Recent Chapter 7 Bankruptcy

blog@www.castlelaw.net (News Author)8470 — Thu, 07 May 2009 08:00:00 EST

After declaring Chapter 7 bankruptcy on February 7, Chernin's Shoe Outlet is operating again - this time with a new owner.

The Discount shoe store, which has seven locations in Chicago, Illinois, and one location in St. Louis, Missouri, has a troubled financial past since its opening over one hundred years ago - with three bankruptcies on record. The store most recently re-opened in 2003 by brothers Randy and Steven Shifrin, but the duo fell on hard times during the recent economic crisis. A few months ago, the shoe store listed $524,881 in assets and $6.3 million in liabilities in its bankruptcy filing.

The chain of bargain shoe stores re-opened on April 1, in ten different locations and with over 80 employees. Owner Movant ShoeZone LLC made the purchase by buying the company's name, equipment, and inventory as well as several of the store's leases.

Movant ShoeZone is run by Noel Wilner, though Chernin's will now be operated by the former Bigsby & Kuthers President Michael Karpik, who is a friend and associate of the Shifrin brothers. Karpik brings over 30 years of merchandise and sales experience in the Chicago area and, armed with an equity stake, hopes to bring a new professionalism to the struggling discount shoe store. He hopes that by offering quality low-price shoes, consumers will be offered the "right product at the right time."

Four days before liquidation, Movant purchased over $2 million secured debt from Chernin's lender.

Randy Shirfin, the former CEO who does not own a stake in the company, has been asked to stay on at the company.

For more information on Chernin's, visit the company's website.

Chapter 7 Bankruptcy Puts Fate Of Historic Lincoln Hotel In Urbana Into Question

blog@www.castlelaw.net (News Author)8441 — Tue, 05 May 2009 08:00:00 EST

According to the News-Gazette, the foreclosure of the Historic Lincoln Hotel came to a halt when the owner of the property filed for bankruptcy and stalled the sheriff's sale. The sale was to take place on Friday, but just hours before, Urbana Enterprise declared Chapter 7 bankruptcy in federal court.

In most cases, declaring bankruptcy will freeze all debts, including mortgage debts, resulting in an automatic stay. In this case, the Bloomington, Illinois, company chose liquidation bankruptcy in order to save the 1921 hotel from being auctioned at the Champaign County Courthouse.

The Bavarian-style hotel closed in mid-March, not long after the bank that owned the mortgage, Marine Bank, foreclosed on the property. Although there were plans on re-naming and renovating the hotel next year, these plans have now fallen by the wayside. As with many automatic stays, the stalled foreclosure will allow the current property owner to think over their options and plan a solution.

Urbana Enterprise bought the hotel just a year ago for $1.3 million. The company also acquired the hotel in a foreclosure sale when owner Jay Bhaghavan defaulted on his own mortgage loan.

Urbana city developers are also in on how the hotel can be put to good use, floating the possibility that the building could house a restaurant and go through with the planned renovations. The urban developers also said that they would like to see a national hotel chain take up the challenge of getting the building back in running order.

There are already rumors of a potential buyer for the property, although that buyer was not named.

Associated Press: Bankruptcies Surging Across The Country

blog@www.castlelaw.net (News Author)8255 — Wed, 22 Apr 2009 08:00:00 EST

In 2005, lawmakers tried to lessen the number of bankruptcy filings across the country by tweaking federal bankruptcy laws to make it more difficult for individuals to file for Chapter 7 and Chapter 13 bankruptcy. But while the change in rules succeeded in curbing bankruptcy instances for a few years, the recent poor economy has caused the numbers to skyrocket again.

The numbers tell the story: 1.2 million people have filed for bankruptcy since April of 2008 according to the Associated Press. Just in the last month, over 130,000 people have filed - a figure that is a 46 increase from last year and an 81 percent increase since 2007. Before the bankruptcy laws were changed, increasing fees for filing and requiring credit counseling for those who chose bankruptcy, two million people filed for bankruptcy in 2005. Directly after the change, only about 600,000 filed in 2006.

University of Illinois College of Law professor Bob Lawless said that the bankruptcy rate is not expected to level off until 2010, at about the same time that the economy will begin to recover according to financial experts. Next year, the bankruptcy filings are expected to peak at 1.6 million bankruptcies. This is the same figure that lawmakers were recording prior to the 2005 bankruptcy law reforms.

Rises in the rate of bankruptcy during recessions and depressions is normal, though the phenomenon often lags behind bad news in the economy. In many cases, surges in bankruptcy can indicate which states have been hit hardest by economic woes.

"The point of the bankruptcy system is to give the honest but unfortunate debtor a fresh start," Lawless said. "The fact that people are waiting longer to file shows just how mean-spirited the law is."

New Developments In Battle Over Possible Bankruptcy Law Changes

blog@www.castlelaw.net (News Author)8234 — Tue, 21 Apr 2009 08:00:00 EST

In the most recent update on the potential changes to current bankruptcy law, the Wall Street Journal reports that Senate Assistant Majority leader Dick Durbin of Illinois may be thwarted by a filibuster in the senate that would block any changes sought by democrats.

The change in the bankruptcy law would allow "cramdowns" - bankruptcy judges across the country to change the terms of residential mortgages in an attempt to save families from foreclosure. Although current law allows judges to modify the terms of mortgages on anything other than primary residence mortgages, first mortgages have been untouchable for a quarter-century. Some would want the cramdowns to expire in 2014. Other want to make clear that this would be a last resort - not meant for everyone filing for bankruptcy.

Those who are for the bankruptcy law modification argue that giving judges that power would keep people in their houses and that it may save money for the lender in the long run - especially considering the large number of foreclosed properties that banks are struggling with currently. The foreclosure process can cost lenders up to $100,000, whereas a modified loan may only cost them ten percent of the current market value or a lowered interest rate.

Those who disagree with the changes to the bankruptcy law are mostly in the banking and financial services industry. They say that this change could potentially raise national interest rates - though they do not have evidence to back up this claim. Although conservatives tried to block the bill in the house, they failed.

US Senate leaders hope to come to an agreement about the state of the cramdown bankruptcy law by Memorial Day.

Cook County Courts To Halt Foreclosures Until Fall Due To Huge Caseload

blog@www.castlelaw.net (News Author)8206 — Mon, 20 Apr 2009 08:00:00 EST

The court that serves Chicago and the surrounding area of Cook County, Illinois, has made the decision to halt the majority of its foreclosure cases until September, reports housingwire.com. The court cites an enormous glut of foreclosures for the delay, saying that it will spend the summer working through the more than 10,000 existing foreclosure cases that already exist.

The Cook County Circuit Court is the one of the most populous counties in the country and Chicago has suffered from a high volume of foreclosure cases even before the housing crisis began earlier this year. In 2008, Cook County received 43,876 mortgage foreclosures - a number that is expected to rise to over 63,000 cases this year. This increase of 30% has caused the court to hire 11 extra judges for the foreclosure hearings and assign six extra courtrooms for the foreclosure activities. In addition, extra law clerks and secretaries have also been added as of April in an attempt to handle the huge caseload.

Still, the court is struggling to handle to high volume of incoming foreclosure cases. In the next step toward solving the problem, Judge Dorothy Kirie Kinnaird order to halt most incoming cases until the end of August in hopes of resolving all cases filed in 2008 by that date. One exception to this rule will be properties that are vacant and abandoned.

Some predict that the caseload in Cook County might get worse before it gets better, especially if those filing for Chapter 13 bankruptcy are allowed to ask the court for mortgage modifications in order to save their houses from foreclosure.

Southern Illinois Farmer Gets 10 Years For Bankruptcy Fraud

blog@www.castlelaw.net (News Author)8179 — Fri, 17 Apr 2009 08:00:00 EST

According to the Chicago Tribune, a farmer from Southern Illinois has been sentenced to ten years in prison for bankruptcy fraud. In an East St. Louis, Illinois, court on Monday morning, a federal bankruptcy judge found 61-year-old Joseph Diekemper guilty of bankruptcy fraud and perjury. Diekemper is also a suspect in a double-murder case that is under investigation.

The farmer, who lives in Carlyle, Illinois, concealed money and assets during his multi-million-dollar bankruptcy case last year, including farm equipment, grain, and milk. The bankruptcy case became even more complicated when a couple from Keyesport reported a tractor owned by Diekemper hidden behind a false wall on the property where they lived. Days after reporting the property to authorities, the coupe, George and Linda Weedon, were found shot to death. The murderer had also set their house on fire in an effort to destroy evidence.

Although Diekemper's attorney denies his client's involvement with the double murder, guns belonging to Diekempter were found buried in the woods nearby and will undergo forensic testing soon. One gun, however, a .22-calier pistol, is still missing.

Two others have also taken the fall for being involved in Joseph Diekemper's bankruptcy fraud. His wife, Margaret Diekemper, was sentenced to two years of probation, while a neighbor, Marvin Kampwerth, was charged with perjury and faces prison time. The judge ordered Margaret to cut off contact with her husband.

During a statement given to the court, Diekemper apologized to his family, friends, and neighbors for lying and cheating.

Central Illinois Bankruptcy Rates Increasing

blog@www.castlelaw.net (News Author)8171 — Thu, 16 Apr 2009 08:00:00 EST

The State-Journal Register out of Springfield, Illinois reported this week that the trend of rapidly rising bankruptcy rates across the country are also being seen in Central Illinois - a part of the state that includes court bankruptcy data from Springfield, IL, Peoria, IL, and Danville, IL.

According to information released by the U.S. Bankruptcy Court in Springfield, Illinois, there were 8,789 separate bankruptcy filings during the last federal fiscal year, which ran from October 1, 2007 to September 30, 2008. This figure illustrates a 21 percent increase from the number of bankruptcy filings during fiscal year 2007.

The numbers don't improve from there for those in Central Illinois. Since October 1, 2008, and through April 1, 2008, another 4,955 people have filed for bankruptcy. This represents another 21 percent increase from the already elevated numbers seen in 2008.

The last peak in bankruptcy filings too place in federal fiscal year 2005, in which over 18,000 people filed for bankruptcy. This was a result of the new federal legislation that made filing for bankruptcy more difficult.

The increase in bankruptcy filings in Central Illinois is certainly related to the troubled economy. With increasing rates of joblessness, a floundering stock market, as well as a mortgage and foreclosure crisis, many Illinois residents are struggling to keep their heads above water. Bankruptcy may be the most viable option for those who have found themselves in impossible financial situations since the recession began.

Chicago Tribune Reports That Economy Will Lead To Many Choosing Bankruptcy

blog@www.castlelaw.net (News Author)8046 — Fri, 03 Apr 2009 08:00:00 EST

In light of the troubled economy and foreclosure crisis, the Chicago Tribune has written a feature article about the bankruptcy option for the millions of Americans who are struggling to pay their bills and stay afloat despite layoffs, credit card bills, and other income problems. In their in-depth, article, they discuss the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy as well as who would benefit from declaring bankruptcy.

What are the signs that filing for bankruptcy might be the best option for you? The Tribune asked Robert Lawless, a University of Illinois College of Law bankruptcy expert. Bankruptcy may be a good option for you if your house is in the foreclosure process; if you are taking money out of your retirement fund; if creditors are taking large amounts of your income; if you feel that there is no way you will be able to repay your debts; if you can only make minimum credit card payments for the foreseeable future; or if you owe significantly more money than you will make in your current situation.

How will declaring bankruptcy affect your home and foreclosure status? It may stall a foreclosure, but not prevent one. Chapter 13 bankruptcy could allow you to spread your missed mortgage payments over the next three to five years, though Chapter 7 bankruptcy will only save your house if you are able to pay past mortgage payments with you assets.

To better understand whether bankruptcy is an option for you, and whether Chapter 7 or Chapter 13 would be appropriate for your individual situation, it is best to consult with a bankruptcy lawyer in your area.

Government Eyeing Bankruptcy Reform As Filing Mounts In Poor Economy

blog@www.castlelaw.net (News Author)8045 — Fri, 03 Apr 2009 08:00:00 EST

When the government made significant bankruptcy reforms in 2005, there was a spike in both Chapter 7 bankruptcy and Chapter 13 bankruptcy filings. Three years later, as millions of families struggle to make ends meet in light of global economic turmoil, job loss, and foreclosure trends, analysts are seeing another spike in bankruptcy filings.

Some financial experts and critics say that this continued flood of filings means that the reforms are a failure. Others argue that the increased bankruptcy rate simply reflects hard times, USA Today reports.

Either way, lawmakers are once again examining how bankruptcy law reform could help Americans in need and get the country moving in the right direction.

"There is continuing concern about the bankruptcy-reform bill and what its effects have been," says Rhode Island Senator Sheldon Whitehouse. "We are looking at a number of things that we can do to address the problems."

Some say that the 2005 reforms made filing for bankruptcy too complicated - and that it favored banks over debtors. Others say that the 2005 reforms have helped officials clamp down on bankruptcy fraud. Most agree that at least temporary laws that allow judges to modify mortgages and keep people in their homes in the face of foreclosure and bankruptcy is needed.

One positive aspect of bankruptcy is that it allows bankruptcy filers to immediately begin rebuilding their credit and stimulating the economy. Right now, the nation needs consumers to jumpstart the economy, and those who have declared bankruptcy and have a fresh start are more likely to help than those who continue to be mired in debt.

Bad Economy Leads Even The Most Unlikely To Bankruptcy

blog@www.castlelaw.net (News Author)8044 — Fri, 03 Apr 2009 08:00:00 EST

Many across the country are under the wrong impression that those who file for bankruptcy in Illinois or Missouri make bad choices or lack restraint. But, as USA Today reports, the poor economy and other current financial woes are illustrating more than ever that bankruptcy can happen to anyone.

People of all ages, backgrounds, classes, and careers are finding themselves in the "perfect storm" of money issues and financial problems. A lost job, a medical emergency, a risky mortgage, a few credit card bills, or less overtime hours can combine to create a disaster.

One man, 89-year-old Howard Zynkian, chose to file for Chapter 13 bankruptcy after accidentally refinancing his house with a bad mortgage. When his monthly mortgage payments jumped $1,300 a month, he found his residence at risk of foreclosure and with bankruptcy his best option for financial recovery.

With 37 percent of Americans admitting to worrying about money this month, and with 3.2 million people seeking professional credit counseling just last year, this economy is proving that a few missteps and a lot of bad luck could put anyone in the position of filing for bankruptcy.

"For many, it's not one particular event, as much as it is life events starting to pile up," says Gerri Detweiler, debt expert. "And it's compounded by the economy and the lack of credit options that are available."

Some are turning to spending their retirement savings to keep their head above water - an option that may be much more dire than filing for bankruptcy.

Meadowbrook Farms Files For Chapter 7 Bankruptcy In Belleville

blog@www.castlelaw.net (News Author)8042 — Fri, 03 Apr 2009 08:00:00 EST

The St. Louis Business Journal reports that the hog processing company Meadowbrook Farms Cooperative filed for Chapter 7 bankruptcy on Saturday, March 20, 2009. The hog co-op, which is based in Belleville, Illinois is owed by over one hundred local hog farmers. The company produces a number of pork products made from antibiotic-free animals, such as ham, baby back ribs, pork chops, ham, and pulled pork.

Financial problems with the company began showing themselves in January, when the pig co-op closed the doors of a processing plant and slaughterhouse in Rantoul, Illinois, laying off the 600 workers employed there. Many of the farms who brought hogs to the plant last spring were not paid for their livestock.

Richard Klene, the CEO of Meadowbrook Farm, explained that a major customer, Triad Foods Group, had ended their contract, starting the financial trouble. A lawsuit against Triad Foods Group is pending, since the lost contract meant $5 million of lost income for Meadowbrook. Klene told reports he hoped to find an investor or lender to bail out the company, but the weak economy wasn't helping their already-dire situation.

The bankruptcy filing at the U.S. Bankruptcy Court for the Southern District of Illinois listed $28 million in assets and $44 million in debts, with $14.6 million owed to Stearns Bank. After the filing, 20 managers marketers from the Belleville, IL, office also lost their jobs. The cooperative plans to liquidate their assets.

Meadowbrook Farms opened its doors in 2002, and many hoped it would offer farms more control over their hog products and greater profits for their hogs.

St. Louis Couple Plead Guilty To Bankruptcy Fraud

blog@www.castlelaw.net (News Author)8041 — Fri, 03 Apr 2009 08:00:00 EST

According to The Alton Telegraph, an East St. Louis, MO, man and a woman have pleaded guilty to bankruptcy fraud after concealing information about their financial lives to the court.

The formerly married couple hid information about a pending workers' compensation claim from the U.S. Bankruptcy Court for the Southern District of Illinois in East St. Louis and the bankruptcy trustee during proceedings - a move that was investigated by a number of organizations, including U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering, and the FBI.

Thirty-three-year-old Keith Gary of Glen Carbon pleaded guilty to three count of bankruptcy fraud, while his ex-wife, 31-year-old Stacie Gary of Glen Carbon pleaded guilty to four counts of bankruptcy fraud as well as one count of employment benefits fraud. Allegedly, Stacie Carbon attempted to collect unemployment benefits while she was employed.

The penalties for bankruptcy fraud are tough - each count of bankruptcy fraud comes with maximum fines of a quarter-million dollars and maximum prison sentences of five years. The penalties for unemployment fraud include fines up to a quarter million dollars and up to 20 years in prison.

Both bankruptcy fraud defendants will be sentenced in June.

If you are filing for bankruptcy, it is vital that you are completely honest about your financial standing, debts, and assets. A knowledgeable bankruptcy lawyer can help you avoid making mistakes in your bankruptcy process that could have dire consequences.

Gas Stations Can Now Place $500 Hold On Your Visa Card

blog@www.castlelaw.net (News Author)5904 — Wed, 18 Mar 2009 08:00:00 EST

In a story airing on KMOV News Channel 4, a new rule went into effect on October 3, 2008, which will allow gas stations to put a hold of up to $500 on your Visa debit or credit card each time you fill up your tank. This change is designed to allow the stations sufficient time to make sure the Visa card being used is valid.

Under the old rule, stations could place a hold of up to $75 on the card for up to 2 days. The new rule allows the hold to be released after 2 hours. However, this change could significantly increase your chances of having insufficient charges to your account due to unavailability of held funds.

For more on this story, click on the link below.

Kansas City, MO, Group Works Toward Foreclosure Prevention

blog@www.castlelaw.net (News Author)7564 — Sat, 28 Feb 2009 08:00:00 EST

KMBC Channel 9 reports that members of the Kansas City, Missouri community are coming together to stop the rash of home foreclosures that have stunned the area over the last two years. The group, Communities Creating Opportunity, is on a mission to educate the community about foreclosures, change the mortgage process, and temporarily change bankruptcy laws to help people keep their homes.

The group is not just about helping their neighbors - they also have their own stake in fixing the housing crisis. Foreclosed homes drop housing values in the area, attract crime, and are often used as illegal dumping grounds. The CCO hopes that their activism will prevent more than 8,000 foreclosures in the future around the state of Missouri.

The group helps keep already foreclosed houses free from trash, squatters, and property damage. At the same time, they are offering a foreclosure prevention workshop in Kansas City aimed at educating those who are facing foreclosure in the near future. During the six-hour workshop, troubled homeowners can meet with financial counselors as well as their lenders in order to form a plan of action.

In the future, the CCO is planning on taking political action, beginning with putting pressure on mortgage companies to find ways to keep families in their homes. The group is also interested in pushing lawmakers to change bankruptcy laws in order to help those with housing trouble find a way to pay their mortgage.

According to Communities Creating Opportunities, foreclosures don't just affect those losing their house - it affects their friends, family, neighbors, and community at large. It's everyone's issue.

"This is what happens when you have foreclosure. It not only affects the people who are in foreclosure, it affects the neighborhoods, the children, the families," said Marian Youngblood, a member of the new group.

Chernin's Shoe Outlet In Chicago Files For Chapter 7 Bankruptcy

blog@www.castlelaw.net (News Author)7563 — Sat, 28 Feb 2009 08:00:00 EST

According to the Chicago Tribune, the century-old Chernin's Shoe Outlet LLC filed for bankruptcy on Monday, February 4. This isn't the first time the discount footwear chain has seen financial trouble - the company filed for bankruptcy in 1999 and has seen tough times sprinkled throughout the years since it's opening in 1907.

The store, which is filing Chapter 7 bankruptcy, is based in Chicago and has stores throughout the state of Illinois and in six other Midwestern states. Overall, the chain have 19 locations that will be closing when the store goes out of business. Ten of the stores are located in the city of Chicago and suburbs - mostly on the south side and in the southern edge cities.

Early in its history, Chernin was an outlet store with large storefronts throughout the city. In fact, it made the idea of discount shoes popular. In 1999 the store closed after declaring bankruptcy. In 2003, some of the former executives of the shoe store reopened business at a scaled-down level. Chief Operating Officer Randy Shifrin was involved in both incarnations of the store. Shifrin, who is also the largest shareholder, has not talked to media

When filing for bankruptcy, the company listed its assets as being 500,000 and $1 million and its debts as being between $1 million and $10 million. The company will liquidate its assets to pay off their creditors, which number 170 and which are mostly local companies such as Amcore Financial Inc. and Sun-Times Media Group Inc. In its 1999 filing, the company listed $18 million in assets and $29 million in debt.

Some blame the poor quality of the low-price shoes on the store's financial woes. However, many businesses of this size are struggling in today's tough economy.

Chapter 7 bankruptcy filings have rose 60 percent in the last year in the Chicago area according to Medill Reports Chicago.

$726 million in St. Louis Commercial Properties in Foreclosure

blog@www.castlelaw.net (News Author)7562 — Sat, 28 Feb 2009 08:00:00 EST

The St. Louis Business Journal is reporting that roughly $726 million worth of St. Louis, Missouri, commercial properties are either currently in foreclosure or in danger of entering the foreclosure process. The staggering amount of money represents 45 different properties.

The data was released by a commercial property research firm, Real Capital Analytics (RCA), who tracked all St. Louis commercial properties worth more than $2.5 million.

"RCA has tracked an increasing amount of distressed properties in recent months," Managing Director Dan Fasulo said. "With almost $5 billion worth of foreclosures (nationwide) in January, this will be the first month where foreclosures outpaced actual commercial property sales."

Twenty-nine of the properties, consisting of $500 million of worth, are considered potentially troubled by the research firm. These properties have financially distressed owners that may lead to the bank reclaiming ownership.

Twelve of the businesses are considered troubled, which means that either the owner has declared bankruptcy or the owner has defaulted on his or her loans. This category represents $118 million of the total.

Four properties are in foreclosure, with a worth of about $109 million. These properties consist of two office building and an old movie theater: The Union Center 10 Cinema, The Power House office building, the Corporate Square office building, and the Grand Central office building. The Power House office building is three-fourths filled with tenants.

The largest of the foreclosures was on St. Louis' largest hotel, the 1,100-room Renaissance Grand & Suites Downtown. The hotel's bondholders are retaining control of the building until a buyer of the $98 million property is found.

On the bright side, a smart businessperson with money in hand can benefit from some unbelievable commercial property deals.

Many of these foreclosures are due to the trouble of refinancing in tight credit market.

National Bankruptcy Law May Change

blog@www.castlelaw.net (News Author)7558 — Sat, 28 Feb 2009 08:00:00 EST

According to the Chicago Tribune, bankruptcy law in the United State may be altered shortly. The change would give judges extra power when modifying primary home mortgages and hopefully slow the foreclosure rate that is at an all-time high presently.

The change would mean that bankruptcy would not necessarily result in higher mortgage payments on filer's homes - currently, missed mortgage payments are usually placed back onto the principal during the formation of repayment plans. If the change is passed, however, banks may choose to modify existing loans instead of seeking other options.

Currently judges may modify the principal of other property besides primary residences, such as vehicles, second homes, or vacation homes. Homeowners using the new rule would have to seek voluntary loan modification from their mortgage companies at least 15 days beforehand. The Congressional Budget Office estimates one million homeowners would benefit from the measure.

The change is backed by democrats, housing advocates, and President Barack Obama. It would be a temporary measure during these tough economic times, and would not be applicable for situations that arise after the law is in place. Those in support of the bill don't think it would lead to a flood of new families and individuals declaring Chapter 13 bankruptcy, as the process is complicated enough to discourage those who do not need the process.

"We thought bankruptcy was needed as a way to say to the industry, 'If you don't do it, somebody's going to do it for you,' " said Kathleen Day, a spokeswoman for the Center for Responsible Lending, a non-partisan group that targets what it calls abusive lending practices.

Opposition to the bill includes some republicans as well as the mortgage industry. They argue that they would have to raise loan costs to make up for mortgages modified by the bankruptcy judges. Those who do not deserve it may be paying for other people's forgiven loans.

Bankruptcy On The Rise In Missouri

blog@www.castlelaw.net (News Author)7557 — Sat, 28 Feb 2009 08:00:00 EST

The Southeast Missourian reports that the state's lawyers say bankruptcy filing is on the rise across the region. In the difficult economy that seems to be getting worse and not better, more and more families and individuals are seeking relief from creditors and debtors and attempting to keep what little they might have left.

From 2007 to 2008, the number of people filing for bankruptcy in Southeast Missouri increased by 29 percent. For two years ago, the increase jumps to 77 percent.

Although filing for Chapter 7 or Chapter 13 bankruptcy brings with it a stigma, those filing for bankruptcy now are those who have not been irresponsible with their money or "deadbeats" - they are for the most part victims of the recent economy. Many lost their well-paying jobs in the building and manufacturing industry while others have been hit with huge mortgage payment increases from flexible-rate loans.

"Ninety-nine percent of the filers in Southeast Missouri are legitimate hardship cases," said a local lawyer. "They are not planning it. These are not abusive filings."

In the case of one couple in Cape Girardeau County, bankruptcy is simply the best option for their situation. Both husband and wife had secure finances and well-paying jobs. But when Dana Corp closed last year, and when the husband was faced with a medical condition, the couple was quickly in trouble.

Now the couple is behind on their house payment, their medical bills, and their credit card payments. They simply want to wipe their slate clean and start a new life.

Others seeking bankruptcy are construction workers who were used to living on overtime pay but who now struggle to fill their weeks with work. Still others are faced with medical emergencies or expensive divorces.

Overall, with rising bankruptcy numbers, attorneys across the state reiterated that filing for bankruptcy is not shameful if it is the right choice for you. Especially in these times, a financial crisis can strike almost anyone.

Missouri Couple Avoids Foreclosure Under Contract For Deed

blog@www.castlelaw.net (News Author)7515 — Thu, 26 Feb 2009 08:00:00 EST

A couple from Republic, Missouri who made monthly payments but nearly lost its home has filed suit against Greenleaf Cos., alleging that the company breached their contract and engaged in questionable business practices.

In the suit filed by David and Susan Foster, the couple claims to have purchased a house from Greenleaf in August 2007 for nearly $252,000 on a contract for deed. The Republic house belongs to Marionville resident Talya Finn.

As the middleman, it was expected that Greenleaf would collect money from the Fosters and pay Finn enough for her mortgage payments to be covered. However, with insufficient income, Greenleaf officials have said the company was unable to pay Finn and other investors.

According to the Fosters, they made all of the agreed-upon payments on time, but foreclosure was threatened against their house when Greenleaf failed to ensure the house’s loan had been properly paid. The Fosters said that foreclosure proceedings had been initiated, but canceled when Greenleaf “made arrangements to remedy the deficiency.

The Fosters seek punitive damages of at lease $100,000 and a release from their contract.

An Open Challenge To Dust Yourself Off

blog@www.castlelaw.net (News Author)7092 — Sat, 24 Jan 2009 08:00:00 EST

The hope didn't last long, at least for some.

Barack Obama wasn't president a day before we were brought smack back to the harsh realities of our economic times. The Dow Jones industrial average plunged more than 330 points, or 4 percent, on Inauguration Day.

It's not just the stock market that continues to deliver bad economic news.

For more information, follow the link below.

Bankruptcy as a Step to Solvency

blog@www.castlelaw.net (News Author)7091 — Sat, 24 Jan 2009 08:00:00 EST

THE idea of declaring bankruptcy may be unpleasant, even abhorrent, but for many people right now it could be the best option.

The question is: How do you make that choice? How bad do things need to get before you throw in the towel, and most of your debts, and petition the courts for a fresh start?

For more information, follow the link below.

Charter Communications may file for bankruptcy

blog@www.castlelaw.net (News Author)7090 — Sat, 24 Jan 2009 08:00:00 EST

Cable industry observers anticipate St. Louis-based Charter Communications could file for bankruptcy as early as this week, according to published reports.

For more information, follow the link below.

Bankruptcy filings jump by one-third in 2008

blog@www.castlelaw.net (News Author)6936 — Fri, 09 Jan 2009 08:00:00 EST

ALEXANDRIA, Va. (AP) — U.S. consumer bankruptcy filings jumped nearly 33% in 2008 amid a recession that's expected to keep filings rising into the new year.

Overall consumer filings reached 1,064,927 last year, up from 801,840 in 2007, according to data collected by the National Bankruptcy Research Center and published by the American Bankruptcy Institute, an Alexandria-based research group.

For more information, follow the link below.

Crestwood Court Macy's is among 11 set to close

blog@www.castlelaw.net (News Author)6935 — Fri, 09 Jan 2009 08:00:00 EST

The post-holiday shopping blues finally came knocking at Crestwood Court. Macy's Inc. will close its department store at the struggling Crestwood mall after 39 years of operations there.

For more information, follow the link below.

Retailers Who Have Filed for Bankruptcy in 2008

blog@www.castlelaw.net (News Author)6840 — Tue, 30 Dec 2008 08:00:00 EST

Retailers have come under growing pressure as consumers cut their spending because of the drop in home values, worries about job security, eroding credit and higher food costs. Experts expect a spate of bankruptcies after holiday sales are tallied and weaker players become unable to survive.

For more information, follow the link below.

Feds adopt rules to crack down on some credit card abuses

blog@www.castlelaw.net (News Author)6748 — Sun, 21 Dec 2008 08:00:00 EST

Brooke founder files for personal bankruptcy

blog@www.castlelaw.net (News Author)6747 — Sun, 21 Dec 2008 08:00:00 EST

The founder of Brooke Corp., the now-bankrupt franchiser and financier of insurance agencies, has filed for personal bankruptcy.

In an abbreviated Chapter 11 filing Tuesday in U.S. Bankruptcy Court in Wichita, Robert D. Orr didn’t enumerate his assets or liabilities. But he checked off boxes listing his estimated assets as ranging from $100,000 to $500,000 and his estimated liabilities as ranging from $50 million to $100 million.

KB Toys Announces Bankruptcy Filing

blog@www.castlelaw.net (News Author)7516 — Fri, 12 Dec 2008 08:00:00 EST

In yet another sign of the grim holiday season, KB Toys has filed for bankruptcy protection for the second time within the past four years. The company announced its decision on December 11 in addition to its plans to immediately begin going-out-of business sales at its stores.

The company, which has been in existence for 86 years, said that its debt is a direct result of a “sudden and sharp decline in consumer sales” due to the poor economy.

A toy retailer filing for bankruptcy just before Christmas is an indication of how bleak things have become, as such stores typically make up to half of their sales during the holidays. However, analysts say they expect toy sales during the holidays this year to be flat or slightly down from the total of $10.4 billion a year ago, according to market research firm NPD Group.

In response, toy retailers such as KB Toys have amped up their discounts. KB Toys aggressively reduced prices, expanded its values program, and offered “Buy 2, Get 1 Free” promotions.

However, these deals were not enough. The company said that between October 5 and December 8 sales in stores open at least one year showed a nearly 20 percent decrease in same-store sales.

Filing for Chapter 11 bankruptcy protection instead of Chapter 7 liquidation allows for a company to retain more control over selling off assets. Under Chapter 7, the court would immediately appoint a trustee to take over the case.

Payday loan problem: financial 'quick fix' leads to personal bankruptcy

blog@www.castlelaw.net (News Author)6553 — Thu, 04 Dec 2008 08:00:00 EST

Some 10 million American households borrow money through payday loans each year, and payday lenders now have more storefronts than McDonald’s and Starbucks combined. New research by Vanderbilt Law School Assistant Professor Paige Marta Skiba found that payday loan applicants who received the quick cash after their first application were significantly more likely to file for Chapter 13 bankruptcy than those whose initial application was denied.

For more information, follow the link below.

Consumer bankruptcy filings jump vs year ago

blog@www.castlelaw.net (News Author)6554 — Thu, 04 Dec 2008 08:00:00 EST

NEW YORK (Reuters) - U.S. consumer bankruptcy filings rose 39.2 percent in November from a year earlier but were down slightly from October, the American Bankruptcy Institute said on Wednesday.

The bankruptcy group, which used data from the National Bankruptcy Research Center, said there were 99,925 consumer bankruptcy filings in November, down from October's 106,266.

For more information, follow the link below.

St. Louis Foreclosure Help

blog@www.castlelaw.net (News Author)6534 — Wed, 03 Dec 2008 08:00:00 EST

As foreclosures continue outpacing efforts to modify mortgages, calls have gone out for more robust relief to be provided to struggling homeowners by the federal government. In the month of October, there were reports of nearly 280,000 U.S. properties being foreclosed, five percent more than in September and 25 percent more than in October 2007, according to Realty Trac.

According to Senator Chris Dodd (D-Connecticut), mortgage modification efforts by individual lenders and industry coalitions are unable to keep up with foreclosures when they occur at a rate of 9,000 per day. Dodd, the chair of the Senate Banking Committee, and other members of considering legislation that would make the federal government a major player in the business of foreclosure prevention. Possible measure include a 50 percent federal guarantee on modified mortgages and bankruptcy law changes allowing a debtor’s mortgage to be reworked by a judge.

On Oct. 3, Congress believed that it was addressing foreclosures by passing the $700 billion financial rescue package. The Treasury Department said at the time that the money would be used for purchasing distressed mortgages and mortgage-backed securities from financial institutions, unfreezing credit markets and allowing loans to be reworked on more favorable terms to homeowners, according to supporters.

But the Treasury Department concluded not long after that purchasing mortgages would take too long, considering credit markets’ rapid deterioration. Instead, it was decided that the bailout money would be used for making equity investments in banks in hopes of spurring more lending. However, many members of Congress believe that the root cause of the financial crisis facing the U.S. is the collapse of the housing market.

There has been some progress made in modification of mortgages through private-sector efforts, but the Federal Deposit Insurance Corp. says that only four percent of seriously delinquent mortgages are being modified each month. There are two problems noted by critics of existing mortgage modifications: Many homeowners still default on the loans because payments are still too high and many servicers foreclose on properties instead of modifying loans due to contractual obligations.

For more information, click on the link below.

Exclusive millionaires club falls on hard times

blog@www.castlelaw.net (News Author)6486 — Fri, 28 Nov 2008 08:00:00 EST

Nobody in Montana is laughing at the millionaires-only Yellowstone Club as it struggles to stay open after declaring bankruptcy. It's more like smirking.

For more information, follow the link below.

Bailout, Bankruptcy or Both for Big Three?

blog@www.castlelaw.net (News Author)6475 — Wed, 26 Nov 2008 08:00:00 EST

While federal bailouts and bankruptcies are often viewed as separate alternatives for the automakers, it seems entirely possible that both could occur.

For more information, follow the link below.

Credit cards: Cash infusion might not help riskiest borrowers

blog@www.castlelaw.net (News Author)6474 — Wed, 26 Nov 2008 08:00:00 EST

The Federal Reserve's $200 billion backstop may not spur lending on credit cards to the same degree as on other consumer loans.

For more information, follow the link below.

Bankruptcy Filings Effecting Circuit City

blog@www.castlelaw.net (News Author)6469 — Wed, 26 Nov 2008 08:00:00 EST

Faced with pressure from vendors and consumers not making purchases, Circuit City Stores Inc. filed for Chapter 11 bankruptcy protection on November 10, hoping that the move will help it survive into the holiday season. Under Chapter 11, Circuit City, which is the second-biggest electronics retailer in the U.S., would be able to continue operation while it develops a reorganization plan.

The company said that it cut 700 more jobs at its headquarters in Richmond, Virginia after an announcement the week before that 20 percent of its stores would be closed and thousands of workers would be laid off. Chief Financial Officer Bruce Besanko cited three factors as the reason for filing for Chapter 11: erosion of vender confidence, decreased liquidity, and the global economic crisis.

According to Besanko, the belief was that the company would not be able to receive goods for Black Friday and the holiday season if it did not receive immediate relief. Failing to receive goods for the busy shopping seasons could potentially cause the company irreparable harm.

Circuit City has had only one profitable quarter within the past year and has seen significant declines in traffic along with heightened competition from rival Best Buy Co. and others. In 2007, about 3,400 retail employees, replacing them with lower-paid workers. Analysts said the move could backfire, damaging morale and driving away customers.

The retail industry as a whole is faced with what is expected to be the weakest holiday season in decades, the struggles of Circuit City have intensified as consumers spend less and credit becomes tighter.

Billionaire Club Files For Bankruptcy

blog@www.castlelaw.net (News Author)6311 — Wed, 12 Nov 2008 08:00:00 EST

The Yellowstone Club, which includes Bill Gates as a member, can't pay its creditors.

Even a company with billionaire clients can't stay financed in these lean times. The Yellowstone Club, one of the most exclusive resorts in the U.S., filed for bankruptcy this week.

For more information, follow the link below.

Federal Bailout to Include Credit Card, Loan Companies

blog@www.castlelaw.net (News Author)6310 — Wed, 12 Nov 2008 08:00:00 EST

U.S. Treasury Secretary Henry M. Paulson Jr. said today his priority for the $700 billion bailout program will be to bolster banks and consumer lenders, such as credit card, student loan and car loan companies, rather than supporting other struggling industries.

For more information, follow the link below.

St. Louis Bankruptcy Filed For Another Business

blog@www.castlelaw.net (News Author)6251 — Fri, 07 Nov 2008 08:00:00 EST

Christy Refractories Co, LLC, a manufacturer based out of St. Louis, has filed for bankruptcy protection because of an ever-increasing number of asbestos injury lawsuits filed against the company. The end result will likely be a trust established to satisfy all future claims.

The company recently filed for bankruptcy because of liability they face stemming from a company that manufactured asbestos related products, which Christy acquired in 1995.

Nearly 400,000 people in the U.S. filed suit against more than 6,000 different companies after being diagnosed with mesothelioma and other injuries from asbestos. Many of them resulted in multi-million dollar settlements or verdicts and some estimate the total cost of asbestos litigation in the U.S. could eventually reach $200 billion.

Though Christy was aware of the suits at the time of acquiring the company in 1995, the bankruptcy petition indicates that as more individuals have filed suit after being diagnosed over the years, their financial exposure has grown to the point of making bankruptcy protection a necessity.

The petition says that there are currently more than 1,000 asbestos suits pending against Christy. There is $18 million remaining on an insurance policy for the company which has already paid out approximately $27 million.

Christy is not the only corporation. Since 1976, more than 70 U.S. companies have been forced into bankruptcy because of asbestos litigation, more than half of which have filed since 2000.

Bill collectors get tough, and complaints surge

blog@www.castlelaw.net (News Author)6170 — Thu, 30 Oct 2008 08:00:00 EST

NEW YORK - A rapidly increasing number of people are complaining about getting harassed and abused by bill collectors.

Nearly 71,000 people filed such complaints with the Federal Trade Commission last year, roughly double the number in 2003. In addition, more than 14,000 complained to the Better Business Bureau.

Crisis Now Trickles Down To Credit Cards

blog@www.castlelaw.net (News Author)6166 — Thu, 30 Oct 2008 08:00:00 EST

The New York Times reports that after years of flooding Americans with credit card offers, banks and lending institutions are beginning to feel the impact on the heels of the foreclosure mess. Most easy credit card offers have stopped and the banks are starting to write off a tremendous amount of bad credit card debt.

According to the report, more than $21 billion dollars was written off just in the first half of 2008 and that number is expected to continue. The report further illustrates the amount of debt most Americans are under and there simply is no way out without defaulting.

You can read more about this story below.

St. Louis sports teams brace for economic downturn

blog@www.castlelaw.net (News Author)6132 — Mon, 27 Oct 2008 08:00:00 EST

Oct 24, 2008 (St. Louis Post-Dispatch - McClatchy-Tribune Information Services via COMTEX) -- WB | Quote | Chart | News | PowerRating -- During a recent lecture at UCLA, Patrick Rishe showed his "Economics of Sports" class how the professional sports industry, shielded in the past in many ways from a fickle or distressed economy, won't be unscathed by the current economic crisis.

Personal bankruptcies on the rise

blog@www.castlelaw.net (News Author)6130 — Mon, 27 Oct 2008 08:00:00 EST

NEW YORK (CNNMoney.com) -- In 2005, Congress passed a bill aimed at reducing the number of personal bankruptcy filings. But that was before a housing meltdown, a credit crunch and a global economic downturn.

In the midst of the financial crisis, more and more Americans are filing for bankruptcy. And experts say the numbers are likely to get worse.

For more information, follow the link below.

Foreclosure Proves Challenge For Government

blog@www.castlelaw.net (News Author)6116 — Mon, 27 Oct 2008 08:00:00 EST

The increasing number of home foreclosures has lawmakers scrambling to figure out a way to help those in need of assistance before they lose what they have worked so hard to get. MSNBC reports that more than 2,700 Americans lost their home each day from July through September. This number was over twice the amount of homes lost to foreclosure the same period last year.

To read more on this story, click the link below.

Bankruptcy Filings Approach All-Time High

blog@www.castlelaw.net (News Author)6077 — Wed, 22 Oct 2008 08:00:00 EST

The bankruptcy laws were changed in 2005 in an effort by Congress, supported by President Bush and backed by every credit card company in existence, to decrease the number of bankruptcy cases filed by consumers. When the law was passed, I would tell everyone I knew that simply passing a new law would not keep those in need from seeking the help they must have to survive.

AAcer is reporting that electronic filing statistics for the year 2008 will again surpass the million case mark and have reached numbers not seen since the new law was enacted. In fact, for the month of August, 4,476 cases were filed per day, which tops any month since the passage of the law.

You can read more about this story by clicking below.

Credit cards, credit crunch: consumers feel pinch as issuers `go on the defense'

blog@www.castlelaw.net (News Author)5972 — Mon, 13 Oct 2008 08:00:00 EST

Consumers are not just having a tougher time obtaining auto loans and mortgages. The credit crunch and weak economy also are taking a toll on credit cards.

Perhaps you have noticed that you're receiving fewer offers for credit cards in the mail. If you have iffy credit, you might find it difficult to qualify for a card now. Or you may be able to obtain one only at a high interest rate.

For more information, follow the link below.

St. Louis companies weather Wall Street storm

blog@www.castlelaw.net (News Author)5971 — Mon, 13 Oct 2008 08:00:00 EST

Financial markets continued to fluctuate Tuesday as the Dow dropped more than 22 points by noon to 10,895.12 points. That’s on top of the more than 500-point plummet Monday, which was triggered by the double punch of Lehman Brothers Holdings Inc.’s bankruptcy and the forced sale of Merrill Lynch & Co. to Bank of America Corp.

For more information, follow the link below.

Wachovia's banking sold to Citigroup

blog@www.castlelaw.net (News Author)5839 — Tue, 30 Sep 2008 08:00:00 EST

Another week, another seismic shift affecting Arizona's banking landscape.

Citigroup has emerged as the latest player with a major presence in Arizona after its purchase of Wachovia Corp.'s banking operation for $2.16 billion.

The move makes it one of the largest banks in Arizona. Wachovia had entered Arizona last year with the purchase of World Savings Bank, which had about 37,000 customers here.

For more information, follow the link below.

Failed bailout vote hits Wall Street like a hurricane

blog@www.castlelaw.net (News Author)5838 — Tue, 30 Sep 2008 08:00:00 EST

NEW YORK — The "nay" vote heard around the world wiped out $1.2 trillion in stock market wealth Monday, the first one-day trillion-dollar loss in Wall Street history.

For more information, follow the link below.

House rejects $700 billion bailout bill

blog@www.castlelaw.net (News Author)5837 — Tue, 30 Sep 2008 08:00:00 EST

The House rejects the $700 billion bailout bill for troubled financial institutions by a vote of 205 to 228.

Update at 2:09 p.m. ET: Dow industrials fall more than 600 after House defeats bailout plan.

Update at 2:13 p.m. ET: In a breakdown of the vote by party, more than 140 Democrats voted for the bill and nearly 95 against. Around 65 Republicans voted in favor and over 130 against.

For more information, follow the link below.

St. Louis Private Schools Respond to Parents Who Need Economic Help

blog@www.castlelaw.net (News Author)5836 — Tue, 30 Sep 2008 08:00:00 EST

In general, local private schools aren't seeing enrollment affected by the economic downturn. The reason, according to school officials interviewed for this story, is that private school education is a priority for their students' families even in troubled times.

"I remind parents that an excellent education is the only thing that can never be taken away," said Robert Ciampoli, headmaster of Andrews Academy in Lake Saint Louis. The school, which serves boys and girls in kindergarten through fourth grade, relocated this school year to a new $7 million, 73,000-square-foot school.

Commentary: Bankruptcy, not bailout, is the right answer

blog@www.castlelaw.net (News Author)5835 — Tue, 30 Sep 2008 08:00:00 EST

CAMBRIDGE, Massachusetts (CNN) -- Congress has balked at the Bush administration's proposed $700 billion bailout of Wall Street. Under this plan, the Treasury would have bought the "troubled assets" of financial institutions in an attempt to avoid economic meltdown.

For more information, follow the link below.

Congress Votes No To $700 Billion Bailout

blog@www.castlelaw.net (News Author)5830 — Mon, 29 Sep 2008 08:00:00 EST

The proposed $700 billion legislation to rescue the financial system was voted down today in Congress by a vote of 228-205. This is, and will continue to be, a very controversial subject with the average consumer facing hard economic times. As can be expected, news reports are providing continuous coverage of the legislation and what it means to us.

Michelle Caruso-Cabrera with NBC was interviewed today about what the future of credit looks like. The video of her interview, "Tight Credit Market To Get Tighter" is informative on the early predictions to this mess. You can read more about today's vote by clicking on the link below.

Bankruptcy Proposal To Avoid Foreclosure Part of Government Bailout Legislation

blog@www.castlelaw.net (News Author)5799 — Thu, 25 Sep 2008 08:00:00 EST

There is not a news story that comes out these last few days that doesn't mention the crashing economy and predicts the doom and gloom if something isn't done to fix it. The U.S. government has proposed legislation to provide $700 billion to bailout the lending industry and try to get the country back on track.

Opponents of the bill want to make sure that the corporate leaders of the bailed out companies don't profit and get rich from taxpayers money in the deal. In addition, a group of Democrats has added language which would ultimately allow bankruptcy judges to modify mortgage terms in a bankruptcy case in an effort to prevent the increasing number of foreclosures and help to stabilize the economy.

You can read more on this story below.

Why Criminal Charges Can Be Stopped By Filing Bankruptcy in St. Louis, Missouri

blog@www.castlelaw.net (News Author)5774 — Tue, 23 Sep 2008 08:00:00 EST

MSNBC is reporting a recent desicion by a St. Louis Bankruptcy Judge who ordered a business owner to re-pay money that was collected from a building contractor under an order from a Connecticut criminal court that convicted him of stealing from the business owner.

In a case that began in St. Louis, Missouri back in 2006, Mark Poveromo hired Mark R. Koch of Illinois to complete an $80,000 project for his pet food business in Thomaston, Conn. Poveromo paid $39,500 up front, but Koch never did any work, according to court documents.

Poveromo filed criminal charges and Koch was convicted in Connecticut of first-degree larceny in April 2007. In that conviction, Koch was ordered to pay restitution. He paid $25,000 and began monthly payments to Poveromo on the balance.

Two months before his conviction, Koch filed for bankruptcy protection in St. Louis, stopping any claims against him for any debts owed. Poveromo apparently continued with the prosecution of criminal charges and had Koch arrested in connection with the debt.

Koch then filed a complaint in the bankruptcy court accusing Poveromo of intentionally violating the stay on claims by having him arrested to collect on the debt.

After arguments by both sides, Judge Charles Rendlen III agreed with Koch. In a ruling filed in December, Rendlen noted "the highly suspect timing" of Koch's arrest and conviction after filing for bankruptcy. The judge said Poveromo intentionally violated the bankruptcy stay on claims by causing Koch's arrest to collect on the debt.

"Allowing a creditor to use the threat of incarceration on charges related to a prepetition debt undermines the most fundamental premise of bankruptcy law: the guarantee of equal treatment among creditors pursuant to the bankruptcy code," Rendlen wrote.

Rendlen ordered Poveromo to pay back the restitution Koch had given him as well as attorney's fees and costs.

Is My Money Safe With My Bank?

blog@www.castlelaw.net (News Author)5736 — Thu, 18 Sep 2008 08:00:00 EST

As anyone that reads the news can tell, the headlines are full of new stories concerning the collapse of Wall Street and the banking industry. But so far, consumers are beginning to have real fear about who's holding their money and if it is going to be there tomorrow. Almost half of Americans live week to week. The funds in the bank may be all they have.

With the latest news about Lehman Brothers, Freddie Mac and Fannie Mae, along with earlier reports about IndyMac and Countrywide, we all want the money-madness to be over. But the bank failures keep coming. More and more local and national banks appear on the most recent FDIC "danger" list—which they will not disclose until it's too late to recover. Some news outlets have been hinting at the names on the list, but only the FDIC has the information we need to know: Is my bank safe?

If your bank is FDIC insured, your money is insured, with limits. Obviously if something were to happen with your bank, it can take some time to get 100% your money, but in the 75 years the FDIC has been around, they have maintained a solid record of coverage. However, there has never been a banking and credit crisis like this, but I the guarantees the FDIC provides have always proven solid. If you have money in a bank that is currently on the brink, however, you might consider moving it to a safer alternative just to be safe.

There are many consumer-information pages at the FDIC's web site where you can find out if your bank and your individual and joint accounts fall under FDIC coverage. If you want to find out if your deposits are insured, click here. The FDIC has an online tool to check coverage if you have multiple accounts and more than $100,000.

And if you are looking for a different place to put your money, even if you have FDIC coverage but you are just uneasy about it, check Bankrate.com. The information contained on these sites will never be a guarantee the bank will also go under, but always do your research before making a move.

The main thing to remember is to avoid panicking and taking action that could be hurtful to your financial situation. Good, deep research into any area of concern is the first step in understanding what is going on and how you can best protect yourself.

Life After Foreclosure Isn't Pretty - Why Bankruptcy Can Help

blog@www.castlelaw.net (News Author)5620 — Thu, 04 Sep 2008 08:00:00 EST

It is common knowledge that more and more families are facing foreclosure. Over the last 14 years, Castle Law Office has helped thousands of families avoid a foreclosure and save their home. But when the loss of the home is unavoidable, what happens next?

A recent article on CNBC discusses life after foreclosure and what it can mean for you. As you will see, this article explains some helpful information when you are trying to purchase another home after a foreclosure takes place. Keep in mind, this article does not address how a chapter 7 or chapter 13 bankruptcy has on this process. In many cases, when a home is foreclosed upon, there is a balance owed because the home did not sell for what was owed on it. This is referred to as a deficiency balance and the lender can go after you for that balance in court.

In most cases, filing bankruptcy can eliminate any deficiency balance after a foreclosure and help you get back on your feet and on your way to buying another home again. To read more about life after foreclosure, click on the link below.

New Study Shows Declining Credit Card Use Among Americans Due to Economic Downturn

blog@www.castlelaw.net (News Author)5349 — Tue, 02 Sep 2008 08:00:00 EST

SAN FRANCISCO--(BUSINESS WIRE)--Financial research firm Javelin Strategy & Research (www.javelinstrategy.com) released today its latest report on credit cards and consumer spending, which shows that Americans are cutting back on credit card use and having difficulty paying off balances. The report indicates conservative spending behaviors as a result of the economic downturn and the ramifications of the mortgage crisis, soaring fuel costs and rising food prices.

“The sharp decline in credit card spending challenges the popular belief that Americans are charging basic goods in order to sustain their quality of life,” said Jim Van Dyke, president of Javelin Strategy & Research. “Consumers are making deliberate cutbacks like shopping at superstores, eating out less and watching what they charge. We believe this is because most people have already been impacted by the downturn or they’re anticipating that we haven’t seen the worst of it. It’s very cautious behavior.”

For more information, follow the link below.

Credit Card Debt Piling Up for Americans

blog@www.castlelaw.net (News Author)5600 — Tue, 02 Sep 2008 08:00:00 EST

WASHINGTON — With more Americans struggling to pay for basic living expenses, a small but growing segment of the finance industry is encouraging consumers to pay their mortgages, car notes, student loans — and even alimony — online by credit card.

Those who pay their card charges in full each month may find that the practice provides a slew of card incentives while buying extra time to come up with the cash.

Fenton, MO Chrysler Plant to Close

blog@www.castlelaw.net (News Author)5431 — Tue, 02 Sep 2008 08:00:00 EST

ST. LOUIS, Mo. - For 25 years, the minivan has been a bread-and-butter vehicle for Chrysler. When its U.S. competitors recently abandoned the vehicle and its stigma as "uncool," Chrysler hung in, saying it still saw a future despite a shrinking market.

Ford left, and though GM still makes minivans, it doesn't appear to be introducing a 2009 version of the Uplander and is expected to end production next year.

St. Louis Post-Dispatch newspaper cuts 18 positions to trim costs

blog@www.castlelaw.net (News Author)5599 — Sun, 31 Aug 2008 08:00:00 EST

ST. LOUIS — The St. Louis Post-Dispatch said it has eliminated 18 jobs as it copes with declining advertising revenue and increasing newsprint costs.

The job cuts, announced Thursday, are in human resources, production and newsroom management.

"Like many businesses across the country, we continue to feel the economic challenges, including consecutive newsprint increases over the past 13 months," Kevin Mowbray, the newspaper's publisher, said in a statement.

Alabama sewage job drags county down the drain

blog@www.castlelaw.net (News Author)5598 — Sun, 31 Aug 2008 08:00:00 EST

The largest county in Alabama is headed for the biggest municipal bankruptcy in US history, a US$3.2 billion mess caused by a corruption-riddled sewer construction project and the credit crunch.

Jefferson County, which has 658,000 residents and includes the state’s biggest city, Birmingham, got into trouble after the courts ordered a huge upgrade of its sewage system to meet federal water standards and stop raw waste being dumped into streams, the St Louis Post-Dispatch reported.

The county borrowed money on the bond market and when the mortgage crisis hit, the interest rates on the debt rocketed. The nearly completed sewer project, under construction since 1996, is now US$3.2 billion in debt.

For more information, follow the link below.

Bankruptcy Cases Higher for Senior Citizens in Missouri and Illinois

blog@www.castlelaw.net (News Author)5555 — Thu, 28 Aug 2008 08:00:00 EST

According to the Consumer Bankruptcy Project, the number of bankruptcy cases filed for senior citizens over the age of 55 has soared between the time frames of 1991 and 2007. So much so, that as of 2007, if you are over 65 years of age, you are two times more likely to have to file for bankruptcy relief. The reason - it seems that the multiple effect of the loss of significant income along with higher medical costs drives our seniors to the edge.

To read more, follow the link below.

St. Louis Bankruptcy Attorney Reveals Subprime Lenders Confessions

blog@www.castlelaw.net (News Author)5507 — Mon, 25 Aug 2008 08:00:00 EST

We have all heard recent reports of the subprime lending mess and how it has directly contributed to the overall increase in foreclosures through the first part of 2008. I ran across an interesting article and video by an insider where he shares secrets the mortgage industry doesn't want you to know. It's interesting to read that these loans are called "liar loans" by insiders in the industry because of the approval without verification of income or assets.

Richard Bitner, a former subprime lender, explains the ins and outs of the business, how these shady lenders took us all for a ride, what you need to know whether you’re buying, selling, or just watching it all play out, to make sure it never happens again.

For more on this story, click the link below.

The good news, a Chapter 13 bankruptcy can be the solution to help you deal with a bad subprime loan. I have helped thousands of St. Louis, Missouri and Illinois families save their home from foreclosure by helping them file a Chapter 13 bankruptcy.

Credit Counseling in St. Louis, Missouri and Illinois May Do More Harm Than Good

blog@www.castlelaw.net (News Author)5528 — Mon, 25 Aug 2008 08:00:00 EST

When the average person begins to get behind in their credit card and other debt, many first turn to the services of a credit counseling center. Nowadays, these can be found both online and offline. There are many credible counseling centers that have helped people get back on their feet, but there are an equal number of these services that provide little to no help and some that will totally rip you off.

Although even the best credit counseling service helps some people, if you are having problems with foreclosure, repossession or garnishments, these companies will not likely be able to help you with that serious of an issue. An experienced bankruptcy attorney can usually do much more to provide debt relief with the full power of the bankruptcy laws behind you. Where the credit counseling service negotiates with creditors to try to get them to make a deal, under the bankruptcy law, creditors are not in a position to negotiate. They must accept the outcome whether they like it or not.

St. Louis, Missouri and Illinois bankruptcy attorney James Brown with Castle Law Office has been helping families file for Chapter 7 and Chapter 13 bankruptcy relief for over 15 years. If you are facing serious problems as a result of being behind in credit card debt, house payments, child support or even back taxes and student loans, we can help. To find out more, request a free copy of our Ultimate Debt Relief Package today.

To learn more about credit counseling services, click the link below.

How To Come Back From Bankruptcy

blog@www.castlelaw.net (News Author)5447 — Tue, 12 Aug 2008 08:00:00 EST

Q. All of my adult life I have had excellent credit. Recently related to a catastrophic illness my husband and myself had to declare bankruptcy. I would like to reestablish my credit and don't know how to start.

For more information, follow the link below.

Bush signs sweeping housing bill

blog@www.castlelaw.net (News Author)5352 — Wed, 30 Jul 2008 08:00:00 EST

WASHINGTON: President Bush signed into law on Wednesday a huge package of housing legislation that included broad authority for the Treasury Department to safeguard the nation's two largest mortgage finance companies and a plan to help hundreds of thousands of troubled borrowers avoid losing their homes.

For more information, follow the link below.

Small businesses buried by credit card debt

blog@www.castlelaw.net (News Author)5351 — Wed, 30 Jul 2008 08:00:00 EST

The financial health of small businesses is deteriorating quickly, if Advanta Corp.'s earnings, released yesterday, are any indicator.

The issuer of small-business credit cards from Spring House said it gave up on collecting $130.5 million of its customers' debts in the second quarter, up from $102.1 million in the first quarter and $50.7 million a year earlier.

Credit card gripes flood Fed

blog@www.castlelaw.net (News Author)5348 — Wed, 30 Jul 2008 08:00:00 EST

Consumers are filing a record number of comments — mostly complaints — about credit cards with the Federal Reserve, adding momentum to efforts to reform the industry.

The comments respond to a rule that the Fed has proposed to curb "unfair and deceptive" lending. The public has until Aug. 4 to weigh in. Already, nearly 33,000 consumers, advocates and industry groups have done so — by far the most responses ever received on a credit card proposal, the Fed says. It plans to issue a final rule later this year.

For more information, follow the link below.

Missouri cuts two interest-rate reduction programs for students

blog@www.castlelaw.net (News Author)5089 — Mon, 30 Jun 2008 08:00:00 EST

JEFFERSON CITY | Missouri's student loan agency has eliminated two borrower benefit programs, shutting off opportunities for some new customers to reduce their interest rates by up to 3 percent.

The Missouri Higher Education Loan Authority made the cuts in order to leverage federal funding for new loans in the coming school year. Lenders have seen their ability to create new student loans shrivel in the frozen credit market.

For more information, follow the link below.

Fallout From Bad Loans Rocks Regional Banks

blog@www.castlelaw.net (News Author)5090 — Thu, 19 Jun 2008 08:00:00 EST

Home mortgages and other loans that the banks made in good times are souring so fast that many of the lenders are scrambling to prop themselves up. If the pain worsens — and many analysts say it will — some of these banks, like Fifth Third's predecessors, may eventually seek out suitors, most likely large national rivals.

For more information, follow the link below.

In the Debt-Soaked Economic Slump, Americans Find Solace in Support Groups

blog@www.castlelaw.net (News Author)5088 — Wed, 18 Jun 2008 08:00:00 EST

After years of free spending -- $200 jeans, a silver BMW and other grown-up toys -- Michael Wagner had racked up $25,000 in credit-card debt and was behind on his mortgage and car payments. Creditors called night and day. It was a "hopeless downward spiral," he says.

Then, last November, the 34-year-old sales manager for the St. Louis Post-Dispatch joined the "Sunday morning breakfast club," a group of debtors who meet weekly over coffee and eggs to share money woes. Mr. Wagner says he is now on the road to financial recovery, helped by his discovery that "I wasn't alone."

For more information, follow the link below.

St. Charles County eclipses national, state unemployment rates

blog@www.castlelaw.net (News Author)5087 — Wed, 18 Jun 2008 08:00:00 EST

More people in St. Charles County are out of work this spring than they were at this time last year. After the housing market collapse fueled a snowball effect among construction job losses, unemployment is now hitting a higher number of office workers.

In March, 5.7 percent of workers in St. Charles County were out of a job, a figure not even approached in the last 10 years. In April, the unemployment rate settled down to 5 percent. Yet in April of 2007, only 3.5 percent of workers in St. Charles County could not find work.

For more information, follow the link below.

Missouri Lender pushes NovaStar closer to bankruptcy

blog@www.castlelaw.net (News Author)5086 — Wed, 18 Jun 2008 08:00:00 EST

NovaStar Financial Inc. on Thursday drew closer to bankruptcy after a lender accelerated its loan and declared $51 million in obligations immediately due and payable.

For more information, follow the link below.

Bankruptcy for Elderly on the Rise in St. Louis Missouri and Illinois

blog@www.castlelaw.net (News Author)5051 — Tue, 17 Jun 2008 08:00:00 EST

In recent years, statistics show that elderly Americans have sought bankruptcy-court protection at sharply faster rates than other adults. The main reasons cited are overwhelming amounts of debt compared to fixed income and the rising cost of medial bills.

From 1991 to 2007, bankruptcy filings increased among those ages 65 or older by 150%, according to AARP, which will release the new research from the Consumer Bankruptcy Project. Suprisingly, the biggest rise occurred among those ages 75 to 84, whose rate soared 433%.

For more information on the study and its results, click the link below.

Chapter 13 Can Still Help As Home Foreclosure Surges 48% in May, 2008

blog@www.castlelaw.net (News Author)5026 — Sat, 14 Jun 2008 08:00:00 EST

Foreclosure filings were up nearly 50% last month compared to the same time period last year according to RealtyTrac, Inc. Nationwide, there were over 261,000 foreclosure filings in May, up 7% over April. That's bad news for an economy that is reeling from high gas prices, high interest rates and high unemployment rates.

Sobering statistics like these are leading to more calls for government help, especially from lawmakers pushing a plan for the government to guarantee as much as $300 billion in new loans to help borrowers refinance into cheaper, fixed-rate mortgages. However, the bad news is it doesn't appear this is a top priority for lawmakers across the country.

The good news is Chapter 13 of the U.S. Bankruptcy Code can help you in most cases save your home and reorganize your debt into a manageable monthly payment that you can afford.

New Bankruptcy Law Isn't Helping St. Louis Debt Relief

blog@www.castlelaw.net (News Author)5025 — Sat, 14 Jun 2008 08:00:00 EST

When the U. S. Congress passed the Bankruptcy Abuse Prevention and Consumer Act of 2005, it was designed to curb abuse of the bankruptcy system and lead to more personal responsibility for consumers.

We are now 3 years after the passage of the law and although it has managed to make a dent in the number of bankruptcies filed in the early years after its enactment, bankruptcy filings are on the rise and fast approaching pre-2005 levels.

Why is that? With the subprime mortgage and home foreclosure mess, high gas prices and Congress' refusal to put a cap on the interest rates charged by credit card companies is only the beginning to an economy we haven't seen since the early 80s.

For more on this topic, click on the link below.

Diagnosis of blood clot at issue in malpractice trial

blog@www.castlelaw.net (News Author)4917 — Fri, 30 May 2008 08:00:00 EST

A Jasper County jury Tuesday began hearing a wrongful-death lawsuit brought against a Joplin family-practice physician by the wife and mother of a 28-year-old man who died more than four years ago of a pulmonary embolism, or blood clot.

For more information, follow the link below.

2 Ky. widows sue U.S. government over husbands' VA deaths

blog@www.castlelaw.net (News Author)4916 — Fri, 30 May 2008 08:00:00 EST

EAST ST. LOUIS, Ill. - Two Kentucky widows are suing the U.S. government over surgical care they say killed their husbands at a southern Illinois Veterans Affairs hospital where surgeries were halted last year after a spike in patient deaths.

For more information, follow the link below.

Tougher rules needed on credit-card policies

blog@www.castlelaw.net (News Author)4914 — Fri, 30 May 2008 08:00:00 EST

Federal officials are proposing tougher rules on how credit-card companies handle their relationships with customers — steps that are long overdue.

Despite new laws, Chapter 7s are on the rise

blog@www.castlelaw.net (News Author)4913 — Fri, 30 May 2008 08:00:00 EST

Melanie Fletcher lost her job in 2006, when her position as a program educator for Oregon's Washington County was eliminated. She was able to secure another job within the same office, and though it paid less she and her husband, an optician, managed to get by on their combined incomes. Then the Fletchers decided to sell their home in Beaverton last year and move to a rural area near their relatives, about an hour away. That was when the trouble started.

For more information, follow the link below.

Lender's goof slams credit scores

blog@www.castlelaw.net (News Author)4834 — Thu, 15 May 2008 08:00:00 EST

A blunder by student lender Sallie Mae briefly trashed the credit scores of hundreds of thousands of unwitting borrowers who signed up for the company's graduated-payment loans.

The loans allow borrowers to make smaller payments, sometimes covering only the interest owed, for a few years before increasing to full payments. But within the past week, Sallie Mae began reporting the loans to credit bureau Equifax as essentially delinquent, sending borrowers' scores plunging.

Sallie Mae officials said Wednesday that they had fixed the problem and that borrowers' scores had returned to normal. The error affected "less than 10%" of the lender's 10 million borrowers, a spokesman said.

Elan Glasser of Santa Monica, Calif., received an e-mail alert from his credit monitoring service this week that his Equifax FICO score had dropped 81 points, from 727 to 646. (A score above 720 on the 300-to-850 FICO scale is generally considered good; 620 to 660 is considered mediocre.)

When he investigated, Glasser found nothing significant had changed on his Equifax credit report -- except a notation on his Sallie Mae account of "arrangements made with credit grantor to make partial payments."

'I look like a deadbeat'

Such a notation is typically used for debt settlement arrangements in which the lender is paid less than the full amount owed. As a result, borrowers' Equifax credit reports showed the loans as seriously delinquent, with past-due balances and a recent history of missed payments -- all extremely detrimental to credit scores, which lenders use to gauge creditworthiness.

"Suddenly, I look like a deadbeat," Glasser, a filmmaker, said Tuesday. "I'm worried now that my interest rates will go through the roof."

Sallie Mae officials said the coding error was included in a recent download of credit information to Equifax. The other credit bureaus, Experian, TransUnion and Innovis, were not affected, they said.

"Sallie Mae fully understands the importance of one's credit rating, and we sincerely apologize for this error," company spokeswoman Martha Holler wrote in an e-mail Tuesday afternoon, when the lender was still working on a fix. "We are working with great urgency to ensure that the affected credit reports are corrected quickly; in fact, we expect full resolution within the next day. Once the issue is resolved, the payment histories will appear as they would absent our error."

Federal law prohibits creditors from reporting false information to credit bureaus and allows consumers to sue for up to $1,000 for violations. It's unclear, though, whether a goof such as this one qualifies as a violation of the law, particularly if the problem is fixed soon.
Such a serious drop in credit scores can cause havoc on a borrower's finances. Credit card companies may jack up interest rates in response to a plunging score, and insurance companies may increase the premiums they charge. Borrowers may be denied other credit or charged more because of their lower scores.

Sallie Mae markets the graduated-payment student loans as an option for borrowers who are just starting their careers or who need lower payments because of economic setbacks. Borrowers are allowed to make reduced payments in the initial years of the loan, sometimes paying just interest for up to four years before larger payments kick in.

Working on a solution

News of the blunder began circulating last week on Internet user forums, including CreditBoards.com, and spread as more borrowers checked their scores or were notified by subscription credit monitoring services that their FICO scores had changed.

One borrower, who preferred to remain anonymous, found the error had dropped his Equifax FICO score to 660, while his score remained 782 at TransUnion and 820 at Experian. After Sallie Mae announced the fix, his Equifax score zoomed back to 789.

If you have a graduated-payment loan from Sallie Mae and are concerned it may hurt your credit, here's how to find out whether you've been affected and what to do about it:

Obtain a copy of your Equifax credit report, which is available once a year for free from AnnualCreditReport.com. If your Sallie Mae loan account includes a note under the "Descriptions" heading reading, "Arrangements made with credit grantor to make partial payments," your credit has likely been affected -- even if the account shows "paid as agreed" elsewhere on your report.

Take a look at your actual FICO scores, which are typically not available for free. You can buy your Equifax FICO score from Equifax.com or MyFICO.com for $15.95. For comparison purposes, you can buy your FICO scores from Experian and TransUnion, at MyFico.com for $15.95 each (those two bureaus don't sell FICO scores directly to the public)
You can dispute the erroneous description directly with Equifax by using the link provided with your credit report. Make it clear in your dispute that the account is not delinquent and is being paid as agreed.

If you're having a problem with a loan or other credit account because of the Equifax glitch, Sallie Mae has promised to provide help. "We recognize that some customers may need a credit reference during this interim period, and we will gladly and promptly supply one to assist them," Sallie Mae's Holler wrote. "Anyone with questions about their Sallie Mae account may contact us at 1-888-2-SALLIE."

10 ways for Missouri and Illinois consumers to curb sleazy debt collectors

blog@www.castlelaw.net (News Author)4654 — Thu, 17 Apr 2008 08:00:00 EST

The math in recessions is simple: More folks are unemployed; more folks fall behind; fewer folks are able to pay their debts once they get behind. This time, many people can't even borrow against their home equity to pay the bills.

It's tough conditions like these that tempt collectors to get rough with consumers. Given that the debt-collection industry has trouble restraining itself during good times, you can imagine how bad this could get. Consider:

Complaints about collection agencies quadrupled between 2001 and 2007, the latest data available from the Federal Trade Commission. One in five complaints received by the federal agency concerned collectors, and the total of 70,951 exceeded that of any other industry.

Consumers most commonly complained that collectors misrepresented the character, amount or legal status of a debt -- demanding far more than was owed, insisting the consumer owed a debt that he or she did not, or claiming a debt was legally enforceable when the statute of limitations had long since expired. Other common complaints: that collectors violated laws against harassing consumers and using obscene language, that they falsely threatened dire consequences, such as jail time, and that they contacted consumers at work.

You no longer have to be a debtor to wind up the target of a collector's harassment. A booming market in old and often poorly documented debts means that in some cases collectors are going after the wrong people with a vengeance.

The industry itself realizes it has a public-relations problem that's likely to get worse. ACA International, a trade group that represents collectors, unanimously approved a first-ever code of ethics last year, and the head of one of the country's largest collection agencies has warned his colleagues that a public backlash could spoil the coming boom.

'Fresh' debts at 12 cents on the dollar

Vikas Kapoor, the chief executive of call-center company IQor, told a gathering of collection-agency executives in November that the industry needed to better comply with existing laws and improve the public's perception of collectors, according to insideARM, a newsletter that covers the industry.

In particular, Kapoor said, collection agencies should stop buying debt that hasn't been properly documented -- the kind of debt that triggers a lot of consumer complaints and lawsuits -- and should find a way to punish individual collection-agency employees who repeatedly violate fair-debt-collection laws.

These are fine ideas, but I'm not sure we can count on collectors to get their act together as the recession rolls through the economy. There's too much money involved and too little oversight to expect that collection agencies won't cut corners.

The boom has already begun. Sales of overdue credit card debts, already more than a $100 billion industry, are on the rise, and prices are dropping, reflecting both the increase in supply and the growing difficulty of getting borrowers to pay up in a worsening economy.

The price of "fresh," or recently charged-off, credit card debts has dropped between 10% and 30% in the past year to 9 to 12 cents on the dollar, according to Mark Russell, a director at collection-industry consulting company Kaulkin Ginsberg. Older debts, for which two or more collection attempts have been made, have slid between 25% and 40%, Russell said, to 3 cents to 5 cents on the dollar.

Meanwhile, collectors are gearing up to go after these debts. The debt-collection industry has added 100,000 jobs in the past year, according to Kaulkin Ginsberg, bringing employment to more than half a million positions. The growth rate is expected to continue: The U.S. Bureau of Labor Statistics predicts employment in this industry to grow 23% between 2006 and 2016.

So now is the time to act. I have five suggestions for ordinary people dealing with collectors. If you're contacted by collection agencies, you should:

Know your rights. Whether or not you owe money, debt collectors are required to treat you civilly and to obey debt-collection laws. The FTC has information on the Fair Debt Collection Practices Act, and the Privacy Rights Clearinghouse has prepared a fact sheet for consumers dealing with third-party debt collectors. Abusive language, threats to have you arrested and repeated calls are clear violations of debt collection laws; you can report them to the FTC, sue the offenders in small claims court, or both.

Understand the statute of limitations in your state. Your biggest risk if you owe a debt is that a collector will sue you, win a judgment against you (which damages your credit) and succeed in garnisheeing your wages. Your state's statute of limitations is supposed to prevent such lawsuits after a certain number of years (usually three to six years, but in some states it's longer). If the collector files a lawsuit after the statute has expired, you still need to show up in court to point that out.

Stop the calls. Whether or not you owe a debt, you want a paper trail to preserve your legal rights. In your initial contact with a collector, get the company's name, its address and a telephone number. If you're willing to pay the bill, tell the collector you want the company to send you the required proof that you owe the debt. If you're not the debtor, send a certified letter, return receipt requested, telling the collector it has the wrong party and to stop contacting you. (Sending such a letter if you do owe the debt can sometimes trigger a lawsuit, so tread carefully here.)

Keep an eye on your credit reports. You can get free annual peeks at all three of your credit bureau reports at AnnualCreditReport.com. (Make sure you go to the right site; other sites offer credit reports for a fee or as an inducement to sign up for credit monitoring.) Dispute any bogus collection accounts immediately and include any proof you have, such as police reports of identity theft or copies of letters you sent to the collection agencies.

Get help. If a collector continues to call, seek help. The best place to turn may be an attorney who is familiar with debt-collection laws. No money for a lawyer? Try your state attorney general's office.

Bankruptcy Filings Expected to Soar as Economy Slides - Steady Increase in St. Louis Bankruptcy Filings

blog@www.castlelaw.net (News Author)4609 — Tue, 08 Apr 2008 08:00:00 EST

By Gail Appleson

ST. LOUIS POST-DISPATCH

04/06/2008

The law that drastically changed the Bankruptcy Code in October 2005 was supposed make it tougher to escape debts and reduce the number of filings. It worked, for a time.

Although the law made filing for bankruptcy more complex and expensive, the number of cases locally and nationally is rising again. Experts predict a big hike later this year, triggered by the nation's wobbling economy and heavy levels of consumer debt.

National statistics indicate the trend is well under way, with bankruptcy filings by individuals up 27 percent nationwide in the first quarter of 2008 compared to the year-ago period, according to new figures from the American Bankruptcy Institute, a research and education group.

Individuals' bankruptcies nationwide rose 40 percent in the 2007 calendar year compared to 2006. The ABI, which bases its figures on data from the National Bankruptcy Research Center, said the increase is due to rising household debt and growing mortgage problems.

The national trend is reflected in St. Louis-area courts. "We are seeing a steady increase in filings," said Dana McWay, clerk of the Bankruptcy Court for the Eastern District of Missouri. "The state of the economy is always a determining factor in what happens in our courts. I believe we'll see a steady uptick."

Total bankruptcy filings, which included corporate filings, in the St. Louis-based Eastern District rose to 10,091 in calendar year 2007. That represents an increase of 36 percent from the 7,442 cases filed in 2006. The 2006 filings had dropped by about 72 percent from 2005, when they peaked at 26,724 and the new law went into effect, and 2006.

Although filings by individuals make up the bulk of local bankruptcy applications, statistics for the first three months of 2008 show a worrisome trend in business filings as well.

Eighteen business reorganizations under Chapter 11 were filed in St. Louis between January and March. That's the same number of business cases that were filed during all of last year, McWay said.

In East St. Louis, the Bankruptcy Court for the Southern District of Illinois also showed an increase between calendar years 2007 and 2006; however, a breakdown between individual and business filings was unavailable.

The total filings of 5,153 for calendar year 2007 were up 19 percent from the 4,323 in 2006. The 2006 figure represented a decline of 66 percent from the 12,817 filings in 2005.

A LOOMING BOOM IN BANKRUPTCY CASES?

The full impact of the nation's sliding economy is not reflected in the most-recent figures — that may take a few more months — and many lawyers believe there will be a lot of bankruptcy-related business up for grabs this year.

"Nationally, people think that the No. 1 area of growth this year will be bankruptcy," said Carrie Titus, division director of Robert Half Legal, which provides legal staffing to law firms and corporate legal departments.

Titus based her comments on results from a Robert Half survey that asked large firms and corporations about staffing needs in the next 12 months. The results were released last week.

The reason the increase is expected later this year is because the impact of bad economic developments doesn't translate immediately into a sharp hike in bankruptcy filings, said Jack Williams, scholar-in-residence for the Alexandria, Va.-based Bankruptcy Institute. He's also a bankruptcy professor at Georgia State University College of Law in Atlanta.

"That spike generally lags about six to nine months behind the economy," Williams said. "Bankruptcy is a lagging economic indicator."

Because of this, Williams predicted that the number of filings across the country, including business and individual cases, will rise to between 1.2 million and 1.4 million by the end of 2008. Most cases are filed by individuals.

"This is a huge number...".... This is fast approaching previous levels," he said, referring to the period before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect. "It's the very thing that Congress sought to fix. It will turn out to be a legislative failure."

The law, intended to make it harder to escape debts, made seeking bankruptcy protection more complicated and expensive. Among other changes, it requires an investigation into whether people who want to declare bankruptcy can pay off at least some of their bills.

CHANGES CRITICIZED

Changes to the Bankruptcy Code have drawn widespread criticism from debtors' lawyers, who describe the law as ill-conceived and badly written. Some provisions refer to sections that don't exist, some amendments contradict others and some sentences don't make sense, they said.

The lawyers' concerns drew a great deal of publicity, and many individuals rushed to file bankruptcies near the end of 2005, before the act went into effect.

Nationally, non-business filings for the Bankruptcy Court system's fiscal year ended September 2005 totaled 1.7 million, and they spiked to a historic high of more than 2 million for the calendar year ending that December.

Although filings dropped sharply in 2006, as anticipated, it appears that the decline might prove only temporary.

Protect Your Credit In An Economic Downturn

blog@www.castlelaw.net (News Author)4598 — Mon, 07 Apr 2008 08:00:00 EST

Great credit is a powerful weapon in a struggling economy. Here are seven strategies for preserving yours.

Employers cut 80,000 jobs in March

blog@www.castlelaw.net (News Author)4577 — Fri, 04 Apr 2008 08:00:00 EST

The Associated Press

updated 7:50 a.m. CT, Fri., April. 4, 2008

WASHINGTON - Employers worried about recession slashed 80,000 jobs in March, the most in five years and the third straight month of losses.

At the same time, the national unemployment rate rose from 4.8 percent to 5.1 percent, the clearest signal yet that the economy might already be contracting. The new snapshot of the job market, released by the Labor Department Friday, underscored the damage that a trio of crises —in the housing, credit and financial sectors — has inflicted on companies, jobseekers and the economy as a whole.

The unemployment rate was the highest since September 2005, when significant job losses followed the devastating blows of Gulf Coast hurricanes.

Job losses were widespread in March. Construction, manufacturing, retailing, financial services and various business services all racked up losses. That overwhelmed gains elsewhere, including in education and health care, leisure and hospitality as well as in government.

The new employment figures were much weaker than economists were expecting. They were anticipating a drop of 50,000 payroll jobs and the unemployment rate to rise to 5 percent.

The 5.1 percent rate is relatively modest by historical standards, but was nonetheless the highest in more 2½ years.

Job cuts in both January and February turned out to be even deeper. Employers got rid of 76,000 in each month. The elimination of 80,000 jobs in March was the most since March 2003, when the labor market was still struggling to recover from the 2001 recession.

The economy is suffering the effects of a housing collapse, a credit crunch and a financial system in turmoil. That's causing people and businesses to hunker down, crimping spending, capital investment and hiring. Those things in turn further weaken the economy in what has become a vicious cycle.

For the first time, Federal Reserve Chairman Ben Bernanke acknowledged Wednesday that the country could be heading toward a recession, saying federal policymakers are "fighting against the wind" in combating it. Many other economists and the public believe the recession already has arrived.

Economists define a recession as two consecutive quarters of negative growth.

Bernanke wouldn't tip his hand about the Fed's next move. However, many economists believe the central bank will lower interest rates again when they meet later this month.

The Fed has taken a number of extraordinary actions recently — slashing interest rates, providing financial backing to JP Morgan's takeover of troubled Bear Stearns and opening an emergency lending program for big investment houses. All the actions are ultimately aimed at limiting damage to the national economy.

With a public on edge, Congress, the White House and presidential contenders are scrambling to come up with their own relief plans even as they engage in a political blame game.

With the pace of hiring slowing down, the number of unemployed people increased to 7.8 million in March; workers with jobs saw only modest wage gains at the same time.

Average hourly earnings for jobholders rose to $17.86 in March, a 0.3 percent increase from the previous month. That matched economists' forecasts. Over the past 12 months, wages grew 3.6 percent. With lofty energy and food prices, workers may feel like their paychecks are shrinking.

Many analysts believe the economy shrank in the first three months of this year and could still be ebbing now. The government will release its estimate of first-quarter economic growth later this month.

Bernanke, however, has said he is hopeful the economy will improve in the second half of this year, helped by the government's $168 billion stimulus package of tax rebates for people and tax breaks for businesses, as well as the Fed's rate reductions.

Still, even Bernanke predicted this week that the unemployment rate would rise in the months ahead. Some analysts say it could climb to 5.5 percent or higher by year's end.

Foreclosure Assistance for Missouri and Illinois lost as Senate drops bankruptcy aid from housing plan

blog@www.castlelaw.net (News Author)4575 — Fri, 04 Apr 2008 08:00:00 EST

WASHINGTON - Republicans and business-friendly Democrats on Thursday scuttled a plan to give people threatened with losing their homes more leverage in winning favorable loan terms from their lenders in bankruptcy courts.

The Senate killed the bankruptcy plan by a 58-36 vote on the first full day of debate on a bill designed to boost the slumping housing market.

The Democratic-backed bankruptcy law changes, opposed by banks and their GOP allies and a handful of Democrats, would have given judges the power to cut interest rates and principal on troubled mortgages to help desperate borrowers trapped in subprime mortgages keep their homes.

The idea was to give borrowers duped into abusive mortgages leverage in getting their loan terms adjusted. Such power, said the plan's chief proponent, Sen. Dick Durbin, D-Ill., would have helped "more people than all of the provisions combined" in the rest the bill.

But Republicans and 10 Democrats, along with Connecticut independent Joe Lieberman, voted to scuttle the bankruptcy provision. Opponents argued that, despite modifications by Durbin, the proposal would hurt more than it would have helped by leading mortgage lenders to ratchet up interest rates and thereby put another drag on the soft housing market.

The defeat of the bankruptcy plan highlighted a weakness that many people find with the bill _ that it showers generous tax breaks on money-losing businesses like home builders but does little to help people facing foreclosure.

The measure is advertised as helping people keep their homes and injecting demand into the teetering housing market. But its most costly provision simply gives tax cuts worth $25 billion over the next few years to businesses like home builders and banks.

Meanwhile, it provides just $3 billion in tax relief to homeowners over the same period, according to an estimate by the Joint Tax Committee, which explores for lawmakers the effects of tax legislation on the Treasury.

The benefits to businesses also dwarf the $4 billion in the measure that would be provided to cities and towns to buy up and refurbish foreclosed and abandoned homes. That provision is aimed at stabilizing communities and preserving values of neighboring homes.

Homeowners would benefit from $100 million to provide counseling to people threatened with foreclosure and help them in negotiating with their lenders. The measure also would provide new authority for states to issue $10 billion worth of bonds to be used to refinance subprime mortgages.

The bill opened to unenthusiastic reviews among many Democrats. House Speaker Nancy Pelosi, D-Calif., promised improvements when the House takes up the measure and negotiates a final bill with the Senate.

"Hopefully the balance will swing more in favor of the families in danger of losing their homes," Pelosi said.

The tax provisions in the measure enjoy sweeping support but deliver the bulk of their benefits to businesses _ regardless of whether they're involved in the housing market _ that are losing money in the current downturn.

Such businesses would be allowed to deduct current losses against taxes paid up to four years ago, when times were profitable. The current limit is two years of such operating loss "carrybacks."

The tax breaks, said Jerry Howard, the chief executive at the National Association of Home Builders, would provide smaller home builders with an infusion of capital that would allow them to stay in business.

The home building lobby has great power on Capitol Hill, but plenty of detractors as well, as do the banks who are currently suffering losses and also stand to benefit.

"Our goal ought to be preventing foreclosures, not just propping up home builders and big lenders," Durbin said.

"It's just a giveaway," said Sen. Judd Gregg, R-N.H.

The four tax provisions would cost $28 billion through the end of 2010, but would deliver just $1 billion in immediate relief this year.

"When they unveiled the package, the main theme was ... 'help families keep their homes,'" said Bob Greenstein, who heads the Center on Budget and Policy Priorities, a liberal think tank. "Three of the four provisions would do little or nothing to accomplish that goal."

The bill also would provide a temporary $7,000 tax credit awarded over two years to people buying foreclosed homes in the year after the bill is enacted. It would cost about $1.6 billion, which assumes about 240,000 home buyers would benefit from the credit.

The bill attracted several amendments to cut taxes further, including a plan by Sen. Ben Cardin, D-Md., to give a temporary $7,000 credit to first-time home buyers and a plan by Sen. Norm Coleman, R-Minn., to let homeowners who are late on their mortgage payments withdraw money penalty-free from their retirement accounts to avoid foreclosure.

The measure contains a broader rewrite of Federal Housing Administration law that would permanently raise the dollar limit on mortgages that FHA can insure to $550,000 in the most costly real estate markets. The economic stimulus bill approved by Congress in February temporarily raised the limit from $362,790 to $729,750.

But Republicans rebuffed efforts by Democrats and the White House to reduce down payments on FHA-insured loans. Instead, the down payment requirement would be raised to 3.5 percent from 3 percent. Democrats sought to lower it to 1.5 percent.

1st Annual Client Appreciation Picnic

blog@www.castlelaw.net (News Author)4563 — Wed, 02 Apr 2008 08:00:00 EST

Announcement:

1st Annual Client Appreciation Picnic

Sunday, May 18, 2008

Forest Park—Pavilion #5

12 noon till 3 pm

As a BIG thank you for being a part of the Castle Law family, you are invited to the 1st Annual Castle Law Client Appreciation Picnic.

There will be food, fun and prizes. We will have a bounce house for the kids and a dunk tank (if allowed by the park) where you will have a chance to get your lawyer ALL WET! The pavilion is located next to the St. Louis Zoo, so make a day out of it in beautiful Forest Park.

NO alcohol is permitted!

You MUST RSVP at 1-866-570-8484

before May 9, 2008.