Tag Archives: Chicago Bankruptcy Lawyers
Another Regional Department Store Chain Mulls Bankruptcy
Gordmans has operated in the midwest for over 100 years, and now according to sources, the department store chain may be closing its doors permanently. The chain began with a single store in Omaha, Nebraska operated by Russian immigrant Sam Richman in 1915. Some time later, Bloomingdale executive Dan Gordman had an unexpected layover… Read More »
Pre-Bankruptcy Activity In Indiana
When regular people contemplate bankruptcy, does it look anything like the looming HHGregg bankruptcy? After two straight years of revenue losses, including a 24 percent decline in the fourth quarter of 2016, the Indianapolis-based company may now see Chapter 11 bankruptcy as the best way to pull out of its financial tailspin. Two other… Read More »
Bankruptcy And Security Clearances
In a way, a security clearance is an asset without any current economic value, like stock options or a right to deferred compensation. Unlike these assets, however, the trustees (people who oversee bankruptcies for the judges) have no authority to seize security clearances, so contrary to popular myth, filing bankruptcy does not automatically mean… Read More »
Bankruptcy Filing Rates Continue Increasing
Illinois is the fifth most bankrupt state in the country, according to the American Bankruptcy Institute. For the first time since 2010, the bankruptcy filing rate edged up in two consecutive months, as a 5 percent January 2017 increase followed a similar increase in December 2016. However, the per capita filing rate actually decreased,… Read More »
What Happens To Property In A Chapter 7?
Probably because of the procedural nickname (“liquidation”), many people erroneously believe that they will lose most or all their property after they declare bankruptcy in order to pay their creditors. After all, that’s essentially what happens in Monopoly and some other finance-based party games. This belief does have some basis, because debtors do indeed… Read More »
Feds Scrutinize Student Loan Repayments
Shortly before President Donald Trump was sworn into office, the Consumer Financial Protection bureau filed suit against one of the country’s largest student loan servicers. According to court documents, Navient was guilty of two sins. First, it failed to properly credit additional payments on existing loans, although part of the blame may fall on… Read More »
Mortgage Modifications In The Post-HAMP Era
The government’s Home Affordable Modification Plan went away at the end of 2016, but there are still mortgage modification options available to the vast majority of distressed homeowners. Fannie Mae and Freddie Mac both participate in the Flex Modification plan. The process is much the same. Homeowners must have a documented hardship, like a… Read More »
Indiana Rejects Peabody Bankruptcy Plan
Concerns over future mine cleanup costs have put the energy giant’s Chapter 11 bankruptcy on hold, at least for now. The state of Indiana, along with some environmental groups, were among the only parties that objected to an $8 billion reorganization plan. Peabody said it would use a controversial though federally-approved plan to clean… Read More »
Should Financially Distressed Illinois Cities File Bankruptcy?
The nonprofit Manhattan Institute says that an “intervention bankruptcy” is a good option for cities experiencing pressing financial problems, as long as politicians are kept out of the loop. Such a course of action is highly preferable to continuing operations on the brink of insolvency, because eventually they get to a point “where they… Read More »
Five Exempt Assets In An Illinois Bankruptcy
Even in so-called “liquidation” bankruptcies, debtors get to keep nearly all their assets, because they are immune from creditor seizure under the generous exemption laws in both Illinois and Indiana. That being said, bankruptcy only erases underlying debts, and it does not extinguish either voluntary or involuntary liens. So, if property is secured, debtors… Read More »
