Bankruptcy, Foreclosure & Loan Modification Posts in June, 2012

Hitch in Houghton’s Bankruptcy

One day after approving the a prepackaged Chapter 11 plan filed by educational publishing company Houghton Mifflin Harcourt Publishing Co., New York bankruptcy judge Robert E. Gerber ruled on June 22 that the petition was improperly filed in New York. The U.S. Trustee, bankruptcy watchdog for the Justice Department, had filed a motion to move the case to Boston on May 30, saying there was no basis for a bankruptcy in New York....
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Chapter 13 Plan

Chapter 13 is informally referred to as the “Wage Earners Plan.”  This is because most people who file under Chapter 13 have a regular income that will allow them to repay their debts over a three to five year span.  Before the debtor can start repayments to creditors, the court must sign off on the repayment plan....
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Just Walk Away…

For some homeowners, especially those who are significantly underwater, walking away from the property is the desired outcome. They ask themselves “Why should I payoff or modify a loan for $200,000 for a property that is only worth $100,000?” This is a very good question, and an important one to ask. The problem in this situation, however, is a personal deficiency judgment. This is when the bank can take a judgment against the borrower personally to satisfy the outstanding amount of the debt that remains after the property is sold....
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What is the Means Test?

The courts use the Means Test to determine if a debtor has enough means (income, etc.) to repay his or her debts.  If the court decides that the debtor can repay those debts, the debtor is forced to file for Chapter 13 bankruptcy, also called a reorganization....
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Hostess Bankruptcy Filing Could Cost Over 1300 Jobs in Illinois

As Hostess continues its bankruptcy fight with unions, the prolonged battle looks to have an impact on Illinois residents.  The fight, which is over Hostess’s plan to cut labor costs, could have a significant impact on the local labor force. In May, Hostess sent off potential layoff notices to over 18,500 of its employees, with 1,380 of them going to workers in plants based in Illinois.   The workers are located at bakeries in Cook County and Peoria and include those based in distribution centers and retail locations across the state....
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Debunking 5 Myths About Bankruptcy

There are several myths and old wive’s tales floating around about bankruptcy.  Many people accept them as truth, and that scares them off from finding the relief that comes from filing bankruptcy.  Here are some of the most common myths about bankruptcy, and the truths behind them.  ...
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  • Newland & Newland LLP, Attorneys, Arlington Heights, IL
  • Lawyer.com