Recent Posts in Bankruptcy in the News Category

Recently, Washington Mutual Inc.'s bankruptcy examiner asked a judge for more time to investigate the U.S. bank failure.  The examiner said he needs to interview witnesses and also collect important documents from federal regulators.

U.S. Bankruptcy judge Mary F. Walrath appointed Joshua R. Hochberg to oversee WaMu's bankruptcy case and filing back in July.  Hochberg was appointed to investigate WaMu's plan to settle lawsuits against JP Morgan Chase & Co and federal banking regulators.  In 2008, WaMu was seized by JP Morgan Chase for $1.9 billion.  She also asked that Hochberg key parts of the case confidential.

At this time, WaMu shareholders are opposing the settlement and believe the lawsuits related to the bank's failure could bring in $30 billion, which would be more than an off to pay off all of the company's debt with money left over for them.  However, that figure is being disputed by all parties who claim that there will be nothing left for shareholders when the company finishes the liquidation process.

Need to file for bankruptcy in San Antonio?  Get the legal help you deserve by contacting the Malaise Law Firm and exploring your options with a San Antonio bankruptcy lawyer.

Recently, Tronox Inc. has reached agreements with its creditors and government agencies that will settle the company's environmental disputes and give the chemical maker enough funds to exit Chapter 11 bankruptcy.

It has been reported that $170 million will be raised by offering 78% of the company's stock in the reorganized company.  Holders of more than 58% of unsecured notes and other creditors have agreed to purchase stock that isn't being sold in the offering.  This stock is available to unsecured creditors with claims of more than $25,000.

The company's legal team wrote the new proposal will, "pave the way for Tronox to confirm a plan of reorganization that -- after months of hard-fought negotiations -- embodies a comprehensive settlement of complex issues among Tronox's creditors."

In 2009, the company which is based in Oklahoma City, filed for bankruptcy.  It reached agreements in August to increase exit financing by $90 million, giving it $468 million in debt upon emergence from Chapter 11.  This month, the U.S. government and state environmental agencies also resolved lawsuits with Tromox.

Are you planning to file for bankruptcy in San Antonio? If so, contact us to speak with a San Antonio bankruptcy attorney today.

Numerous news sources are reporting that Sommet Group is heading for liquidation after a federal bankruptcy judge agreed with a group of its creditors on Friday.

In July, a group of creditors filed an involuntary petition to push the former Nashville Predators sponsor intoChapter 7 bankruptcy, which would allow for liquidation of the company so that debt could be repaid.  Court documents reveal that Judge Keith Lundin issued an order which grants the involuntary petition.

Back in July, federal authorities raided the Cool Springs office of Sommet Group, which provided payroll and payment services to businesses.  An affidavit revealed that managing partner, Brian Whitfield, was accused of misusing clients' funds. 

According to the attorney that is representing the creditors, the bankruptcy process will provide Sommet Group with an orderly way to repay its debt.

At this time, all attempts to reach staff at the Sommet Group have been unsuccessful and there has been no response to the creditors' Chapter 7 bankruptcy filing. 

If you are filing for Chapter 7 bankruptcy, contact the Malaise Law Firm to speak with a San Antonio bankruptcy lawyer.

Earlier this week it was reported that a proposed reorganization plan for the Tribune Company has fallen apart.  The plan was supposed to lead the company out of bankruptcy.

It is reported that negotiations failed between the Tribune Company and its creditors on a consensual reorganization plan.  Tribune Company owns broadcasting group WGN as well as several newspapers, including the Chicago Tribune.

Attorneys for the company are telling a judge in the Delaware bankruptcy court that the company has been unable to bring parties together through negotiations.  Recently, JP Morgan Chase debt specialist, Angelo, Gordon and Company have chosen to drop out of the original settlement agreement that would have made them the new owners of the Tribune Company. 

Soon, the attorney for the Tribune Company says that the organization will file amendments to its plan in a final attempt to gain support from its creditors. If the amendments do not work, Tribune Company could file a lawsuit over fraudulent transfer claims related to its 2007 leveraged buyout.

If you are filing for bankruptcy in San Antonio, contact the Malaise Law Firm and speak with a San Antonio bankruptcy lawyer.

In Dover, Delaware, Tribune Co. is asking that a judge in expand its deadline in its bankruptcy case so that the company can continue to negotiate with its creditors.

Earlier this month, the judge moved several deadlines in the Chapter 11 bankruptcy filing to give the company enough time to respond to an independent examiner's report on the media tycoon's 2007 leveraged buyout. The company was given sufficient time to respond to potential claims.

However, late last week Tribune filed a motion and said it would be unwise to adhere to the current time frame. The company blamed the given state of negotiations aimed at developing a mutually agreed-upon reorganization plan. Tribune told the judge that its creditors should not be bound by this Friday's deadline to vote on its plan.

At this time, the judge presiding over the case has scheduled a hearing for Tuesday in order to closely consider the company's request.

If you are filing for bankruptcy in Texas, contact the Malaise law firm and speak with a San Antonio bankruptcy attorney today.

This week, it was announced that Nolan Ryan bought the Texas Rangers out of bankruptcy court.  Nolan Ryan and Chuck Greenburg made a $591 million bid to buy the Rangers, an organization been struggling with its finances, and the bid was approved by a bankruptcy judge.  It is reported that the pair outbid Mark Cuban, owner of the Dallas Mavericks.

Ryan was the star of the Ranger sin the 1980s and was present at every court hearing.  He told the court that quick and decisive action was much needed so the club could begin acquiring new players and retaining current talent.

Ryan said to news sources, "It was an emotional roller-coaster. You go to court one day and it didn´t go your way, but you go back another day and it would. It´s a relief." 

If you are planning to file for bankruptcy in San Antonio, it is a wise idea to speak with a San Antonio bankruptcy attorney as soon as possible.  Contact the Malaise Law Firm today.

Daniel Kaplan of the SportsBusiness Journal recently stated that U.S. Bankruptcy Judge Michael Lynn announced that he will uphold the auction of the Texas Rangers, which will take place on August 4^th.  Judge Lynn made his announcement at a bid procedures hearing.

However, creditors for the Rangers are arguing that the August date does not give bidders outside of the investor group spearheaded by Chuck Greenberg and Nolan Ryan enough time to get necessary funds together.  Earlier this year, the team filed for Chapter 11 bankruptcy.

At the hearing, a lawyer for Dallas Mavericks owner Mark Cuban said that if the opportunity were right, Cuban may be interested in purchasing the club.  Cuban has said many times through media outlets that he may be interested in partnering with other potential bidders, including Greenberg and Ryan.

If you need assistance with Chapter 11, it is to your advantage to obtain the services of a San Antonio bankruptcy attorney by contacting the Malaise Law Firm today!

This week, several stories have emerged regarding the details of Teresa Giudice's bankruptcy.  Giudice stars on the hit show "Real Housewives of New Jersey" which is aired on Bravo.

Court paperwork shows that Giudice and her husband, Joe, are facing a lawsuit which will prevent them from taking advantage of the debt discharge that is available to those who file for Chapter 7.  The lawsuit came about after the bankruptcy trustee, John Sywilok, found that the Giudices concealed documents related to their businesses and financial transactions.

Allegedly, the Giudices concealed information about their interests in a pizza parlor, laundry mat, Teresa's TG Fabulicious clothing and accessories company, and the book she authored, "Skinny Italian".  Sywilok says that the couple made false statement under oath about their income, expenses and assets.  Next month, the trustee will hold a public auction of the contents that fill the couple's new home.  Home furnishings, accessories, tools and a boat will be up for sale.

The Giudices filed for Chapter 7 bankruptcy last fall.

 If you are thinking about filing for Chapter 7 in San Antonio, now is the time to speak with a San Antonio bankruptcy lawyer  who can help.  Contact the Malaise Law Firm now!

News sources claim that Trump Entertainment has moved one step close to emerging from Chapter 11 bankruptcy following approval from the New Jersey Casino Control Commission.  Trump Entertainment operates three casinos in Atlantic City.

This week, the Commission approved the company's reorganization plans.  A group of bondholders, led by Avenue Capital Management, is set to take control of Trump Marina, Trump Taj Mahal Casino Resort and Trump Plaza Hotel Casino.

In an interview with the Associate Press, Donald Trump said that he was delighted with the Commission's decision, which ended a challenge from billionaire investor Carl Icahn.  He said it was a great victory and proclaimed, "We are going to make this very successful. We're really positioned to do something special. We got rid of so much debt and we have the best brand in town, by far."

Under the reorganization, $225 million of new equity is expected to be injected into the company, which will ensure benefits from improved liquidity and capital resource.

The Malaise Law Firm helps companies who are filing for Chapter 11 in San Antonio.  Contact us to speak with a San Antonio bankruptcy attorney.

This week, it is reported that former Pittsburg Steelers All-Pro center Dermontti Dawson filed for chapter 7 bankruptcy.  Dawson filed his petition with the U.S. Bankruptcy Court in Lexington, Kentucky.

According to his bankruptcy paperwork, Dawson listed assets of $1.4 million and liabilities of $69.7 million.  He stated that his monthly income is $17,972, but his monthly expenses are $19,635.

Many of Dawson's liabilities seem to have stemmed from failed real estate ventures.  He said, "Unfortunately, my personal guaranty exposure on the debts of numerous real estate interests has led to the Chapter 7 filing."  Dawson also stated that he wished things had turned out differently and that he looked forward to continuing his contribution to his community.

At one point, Dawson was the highest-paid offensive lineman in all of Steelers' history.  His average annual salary was $4.2 million.

Are you planning to file for chapter 7 in San Antonio?  If so, the Malaise Law Firm is here to help.  Contact us today to speak with a San Antonio bankruptcy lawyer.

Dallas based video rental giant, Blockbuster, is allegedly working with its bondholders.  At this time, the company is rumored to be in the midst of negotiations with bondholders to obtain $150 million in debtor-in-possession financing.  If the financing is obtained, the company would be allowed to operate after filing for chapter 11 bankruptcy.  The news was revealed by an unnamed source to the Wall Street Journal.

After seeing the statement, a spokesperson for the company released a statement in the Dallas Business Journal, which said, "We continue to have ongoing constructive dialogue with, and received several proposals from, various parties including debtholders, equity holders, and strategic investors."

Many experts in the industry are closely monitoring Blockbuster's actions.  They fear that the company will move forward with declaring chapter 11 bankruptcy. 

If you are thinking about filing for bankruptcy in Dallas, it is advised that you meet with a Dallas bankruptcy lawyer as soon as possible.  Contact the Malaise Law Firm to arrange an initial consultation.

In Texas, it is reported that the Texas Rangers will be moving forward with filing for Chapter 11 bankruptcy.  However, during a conference n Monday, the team's president Jeff Cogen told reporters that while their bankruptcy was a means to speed up their sale, it will not affect the sale of the Stars.

The owner of the Rangers is Tom Hicks and he is letting people know that the Stars are also for sale.

"The Rangers' filing today was a single-team-only filing.  That is separate and distinct from the Dallas Stars," said Cogen.  He also said, "As far as I know, it has no impact on the Stars' Sale."

At this time, Cogen said there is a timetable in place the sale of the Dallas Stars, but he would not disclose details.  He insisted that the process is, however, moving forward.

Filing for bankruptcy in Dallas?  If so, now is the time to speak with a Dallas bankruptcy lawyer from the Malaise Law Firm. Contact us today to learn how we can help you throughout your bankruptcy proceedings. 

In Las Vegas, it is reported that famous magician Steve Wyrick has filed for Chapter 7 bankruptcy.  The filing took place this past Monday and Wyrick listed assets of $93,157 against liabilities of just over $54 million.

On December 10, 2009, the magician's show closed at the Planet Hollywood resort on the Las Vegas strip.  According to Wyrick, the show had to end because of the financial troubles he was facing. 

In his bankruptcy filing, Wyrick said that he did not own any real estate.  However, he does have assets, one being a 2007 Porsche Carrera valued at over $44,000.  He also has over $35,000 worth of magician equipment in his possession.  He listed several investors as his creditors.

Wyrick lists his occupation as self-employed and claims that his monthly income is currently $5,500 from loans and gifts given to him by his own mother.  In 2008, his monthly income was at $130,000 per year.

If you are thinking about filing for Chapter 7 in San Antonio, now is the time to speak with a San Antonio bankruptcy lawyer that can help you with your paperwork, advise you of your rights and help you complete the bankruptcy process in minimal time.  Contact the Malaise Law Firm to learn how we can protect your assets and look out for your best interests.

This past Friday, Dallas based Blockbuster said that it has plans to file for Chapter 11 bankruptcy.  The video store giant told news sources that it currently has enough cash flow to support operations for only the next 12 months. 

After its securities filings, the company made a public announcement.  Blockbuster said that if financial obligations could not be met, the company would have no choice but to file for Chapter 11.  It also said that by law, it is required to use cautionary language due to a possible bankruptcy.

In its latest filings with the SEC, Blockbuster said that it had "a successful implementation" of its cash management strategy.  Still, it was not able to achieve desired revenue targets and would have to either close more stores or pursue liquidation, financing or move toward filing for Chapter 11.

If you are noticing signs of bankruptcy and thinking about filing in the city of Dallas, contact a Dallas bankruptcy attorney from the Malaise Law Firm that can help you understand your options.

According to news sources, the number of bankruptcies filed in the city of San Antonio decreased in the month of April by 2.7% compared to April of 2009. 

This past April, the U.S. Bankruptcy Court for the Western District of Texas in San Antonio announced that 433 people had filed for bankruptcy.  In 2009, that number was 421.  In March of 2010, San Antonio had 452 bankruptcy filings.

Further statistics revealed that 13 people filed for Chapter 11 in April, which is an increase from last year.  The number of Chapter 13 filings fell by 221 compared to the same time period in 2009 and the number of Chapter 7 bankruptcies filed decreased by 15. 

Planning to file for bankruptcy in San Antonio?  If so, now is the time to speak with a San Antonio bankruptcy lawyer at the Malaise Law Firm.  You can contact us to set up an initial consultation by calling 1-800-BANKRUPT.

The U.S. Supreme Court has ruled it is not a violation of federal law for bankruptcy attorneys to advise their clients to acquire more debt before filing for bankruptcy, nor is a new provision to the bankruptcy code unconstitutional.

The case came to the Supreme Court after a Minnesota Law firm challenged a provision in the 2005 bankruptcy laws that said it was an abuse of the bankruptcy system to encourage clients to take on more debt before filing for bankruptcy. The firm argued that sometimes taking on more debt is the best and most practical thing to do to help the client.

The law firm also argued that the law was a violation of attorneys' constitutional rights to freedom of speech. The attorney who addressed the court said he feared the law infringed on their right to provide their clients with "unfettered, candid advice."

The Supreme Court ruled that bankruptcy attorneys can give their clients whatever advice they'd like, as long as it does not lead to an abuse of the bankruptcy system. The Supreme Court also ruled that the provision of the bankruptcy code is not unconstitutional and that it does not violate attorneys' First Amendment right to freedom of speech.

Considering Filing for Bankruptcy in San Antonio?

The Malaise Law Firm offers experienced and trusted legal counsel to people throughout the San Antonio area who need help filing for bankruptcy. If you're interested in learning more about filing for bankruptcy or how the new bankruptcy laws might affect your petition, please do not hesitate to contact our office today to schedule a consultation with an experienced San Antonio bankruptcy lawyer!

The developer and majority owner of The Harbor in Rockwall has filed for Chapter 11 bankruptcy protection. The Harbor is a city center in the Dallas/Fort Worth Metroplex where residents and visitors can enjoy restaurants and shops, as well as a full-service hotel and a 12-screen movie theatre.

The developer, Rob Whittle, wants to restructure the development's mortgage so he can lower rent for tenants.While most tenants are doing well, some retailers are having a hard time. The Harbor averages 25,000 visitors a week and even more during the summer, so Whittle is doing his part to help keep retailers open and in business.

Because the development cost about 30% more to build than the average development, and because the site itself costs close to double what a normal site in Rockwall costs, retailers at The Harbor pay about 25-30% more than the current market rate for Rockwall. The trouble Whittle is now facing is that his retailers can't afford to pay the rent, so he is trying to lower the rent so it's more comparable to the rent in other areas of Rockwall.

Helping Business Owners File for Bankruptcy

The economy has certainly taken its toll on businesses both small and large. If you own or operate a struggling business, a Dallas bankruptcy attorney at the Malaise Law Firm can help. We are available to discuss your current financial situation in order to help you find a way to overcome or eliminate your debt so it no longer present a threat to your business. There are many options we can explore in our efforts to resolve your debt, including filing for bankruptcy, credit counseling, debt settlement or debt consolidation. If you are interested in scheduling a consultation to discuss your situation with an attorney at our firm, please contact the Malaise Law Firm today at (800) BANKRUPT!

Some are speculating that Blockbuster Inc., the movie and video game rental chain, may be heading to bankruptcy court amid declining revenues and a drastic drop in profit.

An article in Business Week reported that the company was more than $855 million in debt, and that annual sales fell 20% to $4.06 billion. The company has had a hard time competing with video rental kiosks, like Coinstar’s Redbox, and online and by-mail rentals from companies like Netflix.

Despite bankruptcy speculation, Blockbuster Chief Executive Officer James Keyes maintains the company will not file for bankruptcy. Instead, the company will focus on acquiring its own rental kiosks so consumers can rent videos the same day they go on sale. The company is also looking into distributing movies electronically through a video on-demand service that would be offered through the cable, satellite, or telephone company.

In addition, Blockbuster has also been working with the movie studios to reach new deals that would lower what the company pays while at the same time giving the studios a bigger cut of the revenue.   

This article is proof that even the strongest and biggest companies are being hit hard in this economy. If you are a struggling business owner, a Houston bankruptcy attorney at the Malaise Law Firm can help. We can conduct a thorough review of your business’ assets and liabilities and help you work out a plan to reorganize your company’s finances. If filing for Chapter 11 is the best option for you, you can trust an attorney at our office to competently guide you through each stage of the reorganization process. If bankruptcy is not the best debt relief solution for your company, we will figure out the best way to approach your debt to get a handle on it once and for all.

To arrange a consultation with an attorney at the Malaise Law Firm, please call (800) BANKRUPT today!

New statistics made available by the Administrative Office of the U.S.  Courts have shown there was an overall increase in bankruptcy filings in 2009 compared to 2008. Here is a brief overview of the recently released data:

• The total bankruptcy filings increased by 32% in 2009 compared to 2008.
• There were 1,473,675 total bankruptcy filings in 2009, which includes both consumer and business bankruptcies. That’s 350,034 more filings than there were in 2008.
• There were 60,837 total business bankruptcies in 2009, the highest number of filings since 62,304 filings were made in 1993. This represents a 40% increase in business bankruptcy from 2008.
• There was a total of 1,412,838 consumer bankruptcy filings, which represents a 32% increase from 2008.
• There was a total of 1,008,870 Chapter 7 bankruptcy filings in 2008, which equals a 41% percent increase from 2008.
• There were 402,462 Chapter 13 bankruptcy filings in 2009, which comprised 28% of the total bankruptcy filings for the year. There was 12% more Chapter 13 filings in 2009 than there were in 2008.
• There were less total bankruptcy filings in the fourth quarter of 2009 than in the third quarter of 2009, but there were 24% more total bankruptcy filings in the fourth quarter of 2009 than there were in the fourth quarter of 2008.

If you are struggling under more debt than you can handle and are considering filing for bankruptcy, we invite you to contact the Malaise Law Firm. As you can see, you are not the only one experiencing financial hardship. Countless individuals and businesses throughout the country have fallen on hard times, and have turned to bankruptcy to help manage their debt. If you are interested in learning more about filing for bankruptcy, an experienced San Antonio bankruptcy lawyer at our office is available to discuss your situation and review your debt relief options at a free consultation. To schedule your consultation, please call (800) BANKRUPT!

On Monday, Citadel Broadcasting Corporation received tentative approval on its reorganization plan from a federal bankruptcy court judge. The plan moves to the corporation’s creditors to vote on whether or not they accept the terms. If the plan is approved, Citadel will be one step closer to emerging from bankruptcy.

In approving Citadel’s reorganization plan, the bankruptcy judge rejected some objections from shareholders who claimed they were being shut out of any equity value due to the company’s improving financial conditions. If the shareholders have any objections to the plans, the can make them known at hearing scheduled for May 12 to confirm the reorganization.

Dallas, the third largest city in Texas, is the economic centre of Dallas-Fort Worth-Arlington metropolitan area. Cases of bankruptcy filing, as the statistics reveal, are on the rise in Dallas. According to the data published by the United States Bankruptcy Court, there was a 35% increase in the bankruptcy cases filed in the Northern District of Texas. Dallas too falls in the same region.

Debt relief ads seem to be everywhere: on television, on the radio, and in newspapers and magazines.  These companies use different terms to describe their services like counseling, consolidation, negotiation, mediation, settlement, reduction, relief, elimination, and so many others.  They all make promises – some more bold than others.  A few of these companies are legitimate.  I want to discuss the majority of these companies that are not legitimate and how to identify debt relief scams.

There are several simple warning signs to identify debt relief scams.  One warning sign is when the company requires a large up-front fee.  The company may even disguise that fee by calling it a “first payment.” Many consumers are surprised when that “first payment” is paid to the debt company and not paid to creditors.  That can also result in a thirty day delinquency on a credit report – just the kind of damage the consumer was trying to avoid!

Another warning sign is if the company makes promises that your credit score will not be affected by their program.  The truth is that there is not a legitimate debt relief program available that can guarantee that your credit report will not be adversely affected.  Any time a debt is not paid according to the terms of the original contract, the creditor is entitled to report adversely.  The creditor may fail to report, or may agree to not report at all, but there is no way to prevent a creditor from reporting truthful information to a credit bureau.

Finally, if the company claims that it can protect you from lawsuits or creditor harassment, run away!  The Fair Debt Collections Practices Act (FDCPA) provides that third party collectors (e.g. collection agencies) cannot contact a debtor directly once an attorney is representing the debtor.  However, the FDCPA does not apply to original creditors (e.g. a credit card company), and it does not apply to non-attorney debt relief companies.  If your creditor wants to sue you over a delinquent debt, only a bankruptcy filing can prevent it.  Additionally, the debt relief company cannot represent you in court – only a licensed attorney can do that!

You can protect yourself from these scams by consulting an attorney.  Only an attorney can explain your legal rights and help you choose the best course of action to resolve your debt problems.