Even if you made all the payments on time, a lender may be able to call the note (demand payment in full) or even declare a student loan to be in default, thanks to an obscure clause in most loan paperwork. The “auto-default” clause applies if the private student loan had a co-signer, which is...Read More
According to a published report, the number of delinquent mortgages decreased by 16% between February and March 2014 to reach their lowest level since October 2007. In a related report, Black Knight Financial claims that only 10 percent of homeowners are underwater on their loans, as compared with 34 percent in 2010. The financial analysts...Read More
Claiming that they are owed more than $60 million, some of its creditors have forced a long-term acute-care hospital into bankruptcy. Specialty Hospital’s debt consists of corporate debt, unpaid taxes, unpaid utility bills and a pending Medicaid fraud claim. The hospitals landlord, Capitol Hill Group, along with CroppMetcalfe and JFW Services, filed the action in...Read More
What was exempt before you inherited it may not be after, according to a recent Supreme Court case. Clark et ux v. Rameker et al centered around the Chapter 7 Bankruptcy of Heidi Hefron-Clark and her husband, Brandon. In 2001, the Clarks inherited a $450,000 IRA from her mother. When the couple later filed bankruptcy...Read More
General Motors is trying to use its Chapter 11 Bankruptcy as a shield against liability lawsuits stemming from faulty ignition switches. The automaker claims that it emerged from bankruptcy as “the new GM” and as a different corporate entity. According to a court filing in New York, the new GM’s recall of the ignition switches...Read More
A former billionaire is now being sued by creditors and may be facing bankruptcy. Industrialist Xiaofeng Peng was one of the richest men in China as recently as 2008. His company, LDK Solar, took on massive debt to begin producing polysilicon. But construction took longer than expected and costs were higher than anticipated. By the...Read More
The number of bankruptcy filings is still trending downward, but the decrease seems to have leveled off. The numbers are down overall, and have been down since 2012, but March 2014 filings were 18 percent higher than February 2014 filings. Observers cited declining interest rates, household deleveraging and high filing and legal fees as reasons...Read More
Bankruptcy hurts your credit score. Your credit score is how lender’s determine whether you are going to be a good customer or not, and bankruptcy means many of your creditors did not get what you agreed to pay them. Rules for borrowing money after filing bankruptcy Many people believe that they are not allowed to...Read More
Even in Dundee, Scotland, people turn to bankruptcy for a financial fresh start. Scottish debtors have the option of liquidation or a repayment trust, the equivalent of a Chapter 7 and Chapter 13 bankruptcy. As of April 2014 78 people, including noted soccer player Craig Beattie, have declared bankruptcy in Dundee. The debtors cover a...Read More
In April 2014, Detroit’s emergency manager stated that he hoped the city would emerge from bankruptcy later this year. Detroit Bankruptcy In July 2013, the City of Detroit filed for bankruptcy protection under Chapter 9; it was the largest such filing in the country’s history. Although emergency manager Kevin Orr had hoped that the process...Read More
