Illinois Bankruptcy Lawyer Blog

The old saying is that you can't escape death and taxes. This is especially true in terms of bankruptcy. In this case the Debtor's mother passed away and the Debtor failed to disclose his inheritance to the Trustee. During the Debtor's 341 meeting, the typical question of whether or not the Debtor expected any inheritances came up. The Debtor told the Trustee that his mother was very ill. The Trustee told him that he was under an obligation to report any inheritance within the next 6 months. The mother dies 2 days after the 341 meeting. The Debtor disclaimed some of the inheritance, took some of it, and received 'gifts' from his brother. During the subsequent investigation, it was found that the Debtor also failed to list a few bank accounts in addition to failing to notify the Trustee of the inheritance. Not surprisingly, the Debtor and his brother were charged with and found guilty of bankruptcy fraud.

According to this press release from the American Bankruptcy Institute, total consumer bankruptcy filings in the first 9 months of 2011 totaled 1,044,722: a 10% decrease from the 1,165,172 filings recorded during the same period a year ago. The statistic is based on data from the National Bankruptcy Research Center (NBKRC).

September consumer bankruptcies decreased 17% from September 2010. Data showed that consumer filings in September reached 108,517 - down from the 130,329 recorded in September 2010.

"The trend of declining filings has been consistent with consumers continuing to reign in their spending, household debt, and an overall pull back in consumer credit," said ABI Executive Director Samuel J. Gerdano. "Total consumer filings for 2011 will be less than 2010."

The September 2011 filings also represented a 4 percent decrease from the August 2011 consumer bankruptcy total of 113,432 filings, a slight change that could be the result of one less day in the month. The percentage of chapter 13 filings for September was 30 percent, a one percent increase from August.

I harbor no love for The New York Times, which I consider to be arrogant, liberal, and self-satisfied. But I have to give credit where credit is due. The Old Grey lady has managed to capture the dramatic story of America's post-war economic rise and fall in these chilling graphics.

 I would have thought the Wall Street Journal or The Economist might have done it instead, but there you go. 

And the numbers tell us we've gotten ourselves into a real mess. Although naturally the Baby Boomers - America's spoiled children - rode the fat part of the curve in the 50's and 60's,  leaving ensuing generations to foot the bill. How typical.

Welcome to the 21st century's Lost Generation.

Follow this link to see the interactive Job Loss Heat Map pictured below that chronicles the state of U.S. employment from 2004 to the Present. Prepare to be disappointed and maybe a bit shocked. I know I was.

The Orlando Sentinel reports that personal bankruptcy are down 13% this year. Interestingly the article mentions a potential cause being the slow down in foreclosures. This seems to agree with the previous blog posting, which also mentions the pace of foreclosures as a bankruptcy factor.

According to a NY Times article, bankruptcy filings are down. There are projected to be between 5 and 10% few filings this year. There are a number of factors cited: access to credit, amount of consumer debt, and economic factors (unemployment and foreclosures).

Jefferson County Alabama is struggling under $4.2 Billion in debt and is contemplating filing Bankruptcy under Chapter 9. A large part in the debt is due to bonds issued on a $2 Billion sewer project than the county has had difficulties refinancing. Kenneth Klee is currently working with the county to help them explore their potential options. Klee has worked many large bankruptcies, including Orange County CA. Original articles found here and here.

Ultimate Electronics was recently forced into bankruptcy. Now they are seeking $420,00 back from Apple as preferential transfers. Those reading this blog are probably all too familiar with preferences. No creditor wants to have to give back money, especially after they have probably lost money to the debtor. Original article can be found here.

Borders announced it was closing its remaining stores and would not emerge from bankruptcy. This probably doesn't come as much of a surprise. I didn't realize Borders was still around. Full article here.

At issue is a loan to the Dodgers. Dodger's owner, Frank McCourt, has managed to negotiate a lower interest rate which has satisfied the creditors; however, MLB is offering a loan at a lower interest rate. McCourt believes that the MLB is trying to force him out as owner. Full articles can be found here and here.

Eva Longoria's company Beso LLC is not in desperate shape contrary to a filing by a creditor's group. A Las Vegas bankruptcy judge denied an emergency request to give control of the company to the trustee. The original articles can be found here and here.

Article in the Hollywood reporter about David Bergstein. Bergstein is a money guy for financing movies. Improper actions by the Trustee are alleged. Usually its the Debtor doing something wrong. This is an interesting turnabout.

To bankrupt or not to bankrupt... Yes, it is a little cliché, but that was the question faced by CEO of Edison International, John Bryson, during the California electricity debacle. Now Bryson, has been nominated for the Secretary of Commerce. The full LA Times article can be found here.

Interesting, short article about the fees in the Texas Rangers baseball team bankruptcy. The team was sold for $593 million. $6.3 million is sought in fees - $159,000 is just for photocopying.