Tag Archives: Chicago Bankruptcy Lawyers
Bankruptcy Filings Increase
After several consecutive years of steady decline, consumer bankruptcy filings increased 6 percent in 2016. According to a report, Illinois had the second-highest number of new bankruptcy filings in the country for December 2016. Alabama and Tennessee had the highest per capita filing rates, continuing a trend of more bankruptcies in the South than… Read More »
Prominent Real Estate Investor Files Bankruptcy
A huge shareholder lawsuit in Northern Illinois may have pushed the onetime “King of Downtown Orlando” over the financial precipice. Ten years ago, Cameron Kuhn employed seventy people, owned twenty choice properties in downtown Orlando, and was expanding into new markets in northern Florida, Georgia, and Louisiana. But then the real estate market crashed… Read More »
New Republic Airways To Emerge From Bankruptcy
The Indianapolis-based regional airline submitted a Chapter 11 reorganization plan to a bankruptcy judge, and if it is approved, Republic should emerge from bankruptcy sometime in the first quarter of 2017. A protracted contract dispute with its pilots meant that the carrier could not fulfill its obligations to United, American, and Delta, forcing the… Read More »
Federal Court Closes Multiple Filing Loophole
The 2005 Bankruptcy Code reforms substantially changed the procedure regarding the automatic stay and eviction proceedings, and the law on this point is still rather uncertain. A New York bankruptcy court recently tried to make sense of the new rules, and since the judge interpreted federal law, the decision could impact bankruptcies in other… Read More »
Chicago Schools Mull Bankruptcy
Faced with a $1 billion deficit and almost no way to make up the difference, the Chicago Public Schools are once again contemplating bankruptcy. But what would happen if a petition is filed? Both Governor Bruce Rauner and Mayor Rahm Emanuel have floated Chapter 9 bankruptcy as the best available option, as the state… Read More »
‘Neither A Borrower Nor A Lender Be’
Five former students want a federal judge to classify them as creditors in the ongoing ITT Tech bankruptcy. The government began scrutinizing the Indiana-based for-profit school, which had 137 sites in 39 states, in 2014, as the Education Department looked into allegations of fraud regarding program offerings and students’ future job prospects. The hammer… Read More »
Dischargeable Bankruptcy Debts
Mortgage underwriters talk a lot about debt-to-income ratio, and as a rule of thumb, a 43 percent DTI ratio is the ceiling for mortgage qualification purposes. The thinking is that people who owe more money than that cannot afford to pay it back, and therefore they are very poor credit risks. So, according to… Read More »
The Freshest Start Of All
General Motors intends to take its ignition switch liability argument all the way to the Supreme Court. Earlier, the Second Circuit Court of Appeals in New York ruled that the automaker is still responsible for damages stemming from defective ignition switches, even though the company declared bankruptcy in 2009 and emerged a short time… Read More »
Asset Valuation Issues In Bankruptcy
Social media is the new frontier for bankruptcy trustees in Illinois and elsewhere. Curtis James Jackson III (a/k/a rapper 50-cent) raised some eyebrows in the trustee’s office after he posted an Instagram photo that appeared to show him posing with mounds of undeclared cash; he later explained that the money was all fake. Roughly… Read More »
Bankruptcy In The Ohio Valley
Although the gross numbers have dropped precipitously, the filing rate for all kinds of bankruptcies remains high in Kentuckiana. The number of cases has dropped by 40 and 44 percent in Kentucky and Indiana since 2010, but the states still rank eighth and sixth in terms of the number of filings per person. Statistically,… Read More »
