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American Airlines seeks to leave bankruptcy protection, merger possible

airplane mergerBankruptcy and the pilots

American Airlines, whose parent group is AMR, has been under Chapter 11 bankruptcy protection since 2011, according to a December 7, 2012 Thomson Reuters News & Insight article. The company filed for bankruptcy because it needed to cut costs, namely $1 billion per year, mostly in labor costs. The AMR pilots union, Allied Pilots’ Association, has agreed to, after extensive and trying negotiations, a new contract. This contract not only gives fair and standard pay, but also 13.5% equity in AMR.

One problem that has arisen, though, through lengthy negotiations, is that the pilots have little confidence in AMR’s management, which includes CEO Tom Horton.

Is a merger in sight?

U.S. Airways Group Inc has, after some speculation, given a merger proposal to AMR. This would help AMR get out of bankruptcy, so the company is now making two plans—one to leave bankruptcy protection alone and is also working on details of a merger. While U.S. Airways would like to see a company that is split 70-30, in terms of AMR creditors holding 70% of the stock and U.S. Airways shareholders holding 30%. Some from AMR say that the 70% number might need to be close to 80%. If the two companies merged, the resulting company would be worth about $8.5 billion, just as much as Delta Air Lines Inc. Not all AMR creditors are onboard with a merger, though. It remains to be seen how and when American Airlines will emerge out of bankruptcy and whether or not the two airlines will merge.

Mathematical methods given the green light by judge

There are currently 15 cases involving banks, including Credit Suisse and Bank of America that deal with mortgages. These cases have been consolidated as the Federal Housing Finance Agency (FHFA) is the plaintiff and the banks are the defendants. The FHFA oversees US government giants Fannie Mae and Freddie Mac. In this lawsuit, which began…Continue Reading

Bronx bankruptcy attorney discusses overdue accounts for credit cards increased in September

Credit card companies celebrated too soon for having low delinquencies accounts, as reported by LowCards in an October 16th, 2012 news article. Earlier this fall the five major credit card companies reported near-historical lows in the amount of delinquent accounts they had. However September revised all of that celebration by showing reports of increases in…Continue Reading

Checking bank account statements regularly better protects consumers against fraudulent spending

Being aware of even small charges can help save a person from credit card fraud. A local news Channel 8 article published on October 22, 2012 reported that keeping track of small purchases helps protect a credit card consumer from major credit damages. Statistics show that roughly 10% of Americans are affected by credit card…Continue Reading

Failure to file bankruptcy petition in time leads to sale of couple’s house in foreclosure

New York Judge rules to uphold the sale of a New York couple’s home even though the couple filed for bankruptcy relief and protection. The New York Law Journal reported in an October 12th, 2012 article that the couple filed for bankruptcy only hours after their home was foreclosed upon, yet the court would not…Continue Reading

Bronx bankruptcy attorney comments on company’s inability to remove stay on New York couple

A 2007 judgment allowed Beach Lane Management Inc. a judgment against a New York couple. According to an October 3rd, 2012 New York Law Journal article the court further granted the Beach Company the right to seek compliance from the couple. In 2011 the Beach Company sought compliance from the couple through a contempt order.…Continue Reading

Bank of America still finds themselves in the courtroom for their 2008 actions

Withholding important information from their shareholders results in Bank of American Corporation paying a high monetary settlement, as reported by Reuters in an online article published September 28th, 2012. Bank of America will be paying $2.43 million to shareholders who bought shares of the investment bank Merrill Lynch & Co. as a settlement for holding…Continue Reading

New York takes Chase to Court for Stearns’ actions

New York is seeking fraud actions against JPMorgan Chase & Co., as reported by Reuters on October 1st, 2012. New York Attorney General, Eric Schneiderman, filed a civil suit against Chase early October for the mortgage-backed securities that were packaged and sold by Bear Stearns. Chase bought Bear Stearns in early 2008. Chase stated that…Continue Reading

Radio station may be playing their last tune after filing for bankruptcy

Pembrook Pines Mass Media a New York media company may be able to keep their radio station assets according to an October 2, 2012 New York Law Journal article. Back in 2009 a default judgment was entered against Pembrook Pines Mass Media and Pfuntner for defaulting on their loans. Along with the judgment a forbearance…Continue Reading

State court better suited for foreclosure proceeding

Foreclosure proceedings were commenced and one of the residents of the building made a motion to remove the case to federal court as reported by the New York Law Journal in a July 23rd, 2012 news article. However, the District Court remanded the case because the removal to federal court was improper as the Defendant…Continue Reading

Failure to provide all of the information leads the court to deny New York woman’s bankruptcy

A New York Bankruptcy judge denied a woman’s petition for bankruptcy after finding that there were numerous inaccuracies in the application, as reported by the New York Law Journal in a September 17th, 2012 article. The woman sought relief through a Chapter 7 bankruptcy but the court found that she failed to list all of…Continue Reading

Consumer use of credit cards declines significantly

In a September 10th, 2012 Reuters’ online article it was reported that the consumer credit debt fell for the first time in nearly a year. Many experts believe that Americans are attempting to reduce their credit card use and debt while the economy remains rocky. The consumer’s credit shrank remarkably in July, nearly lowering roughly…Continue Reading

Bronx bankruptcy attorney comments on small American town filing for bankruptcy.

Another American city slowly resolves their financial troubles. Central Falls the smallest city in Rhode Island has their officials working hard to emerge from bankruptcy, as cited by Reuters on September 3rd, 2012. The small city had been facing financial issues for several years, which became one large financial issue. Before filing for bankruptcy the…Continue Reading

The Deep South finds itself in deep financial troubles

Alabama is working diligently to formulate a favorable plan to get Jefferson County’s financial woes under control, as reported by Reuters in an August 30, 2012 article. The state’s government is hopeful that a settlement plan will be established by the end of this year. Jefferson County filed for a Chapter 9 bankruptcy last year…Continue Reading

Bronx bankruptcy lawyer comments on New York business filing for bankruptcy

Another private New York business has filed for bankruptcy as reported by Reuters on August 29th, 2012. Bain Capital LLC filed a bankruptcy petition seeking a Chapter 11 protection for its small cable-box repair company. Although the company repairs roughly 2 million cable boxes yearly, they have found themselves in severe debt. The company listed…Continue Reading

Students start to lose interest in higher education due to high interest rates on student loans

U.S. lawmakers, educators and policymakers are working together to find a solution to the large amount of debt students are taking on, as reported by a May 8th, 2012 Reuters news article. The average American  student who seeks an undergraduate degree leaves college with roughly $29,000 in student loans, which over time rise because of…Continue Reading

Student loan debt does not only affect the student but the school as well

High student loan debt may have a greater effect on the U.S. economy, as reported by Reuters in an online article published August 20th, 2012. Experts claim that colleges and universities throughout the nation have continued to increase their tuition, and now younger generations have to decide whether the high debt is worth the higher…Continue Reading

Bank of America eliminates credit card protection services after a lawsuit settlement

A $20 million settlement has resulted in the Bank of America Corporation to stop offering and selling credit protection services to their consumers, as reported in an August 21st, 2012 Reuters online article. The settlement was the result of a class action suit filed against the Corporation, which had allegedly changed the credit protection terms…Continue Reading

Advantages of Chapter 13 bankruptcy filing

There are several advantages to filing for a Chapter 13 bankruptcy rather than a Chapter 7. One of the main advantages is for those individuals whose property is close to foreclosure.  Filing for a Chapter 13 bankruptcy helps save the property from being foreclosed, however, mortgage payments must still be paid. Another significant advantage to…Continue Reading

Lawsuit against Capital One dismissed on grounds they were not properly informed

A lawsuit against Capital One for allowing unauthorized withdrawals through ATM machines has been dismissed, as reported by the New York Law Journal in an article published on April 20th, 2012. Royal Arcanum sought damages against Capital One and its ex-vice president, Herrnkind, for Capital One’s failure to have two officers sign off on each…Continue Reading

Student loan debt does not only affect the student but the school as well

High student loan debt may have a greater effect on the U.S.’s economy, as reported by Reuters in an online article published August 20th, 2012. Experts claim that the colleges and universities throughout the nation have continued to increase their tuition, and now younger generations now have to decide whether the high debt is worth…Continue Reading

Bankruptcy judge rules that company may not give large bonuses to their executives.

A federal bankruptcy judge denied Hawker Beechcraft Inc. its request to pay its top eight executives massive bonuses, as reported in an August 24th, 2012 online Reuters article. The company claimed that the bonuses were to be a reward to the executives for staying on with the company. However, the judge found that a $5.33…Continue Reading

Bankruptcy case was transferred out of New York for not being debtor’s primary residences

Judge Gerber, a Southern District Bankruptcy Court Judge which is located in New York, found that a textbook publisher’s bankruptcy will not be heard in a New York even though all parties involved agreed to such venue, as reported by the New York Law Journal in a June 26th, 2012 article. The judge found that…Continue Reading

Kodak’s financial struggle leads to the company having to sell part of its corporation

Eastman Kodak Company’s bankruptcy filing is finally coming to an end but it leaves the company having to sell pieces of their corporation off, as reported in an August 23rd, 2012 Reuters online article. Kodak announced in late August that they plan to sell a majority of their consumer imaging business to pay down their…Continue Reading

Bronx bankruptcy attorney comments on corporation defaulting on second major loan

Integrated Sensors Inc. defaulted on two major secure loans, causing their director to seek a Chapter 7 bankruptcy, as reported by a New York Law Journal article published August 13th, 2012. The secure loans were held by Economic Development Growth Enterprises Corp. (EDGE) and Utica Industrial Development Corp. (UIDC), both of the loan holders sought…Continue Reading

Chapter 7 assets general guidelines of what is allowed and not allowed to be liquated

Federal laws govern the process and procedures of all bankruptcies, however many states provide their own exemptions. For example in New York bankruptcy petitions, the debtor may decide in Chapter 7 petitions whether to follow state or federal asset exemption guidelines. Many individuals are unaware of the laws surrounding their assets when they file for…Continue Reading

The role of a Trustee in a Chapter 7 bankruptcy

A Trustees play a very important role in Chapter 7 bankruptcies, they essential act as judges for bankruptcy petitions. Once a bankruptcy is filed a Trustee is assigned to the case to review the terms filed.  Trustee must uphold all of the federal bankruptcy laws while reviewing each individual debtor’s case. Their main duty is…Continue Reading

Filing a Chapter 7 bankruptcy

The filing for a Chapter 7 bankruptcy may appear scary or intimating to some individuals. That’s why it is so important for a person to fully under the process. After the debtor’s attorney has collected all the required documents from the debtor and the debtor has completed a mandatory pre-filing educational class, then the debtor’s…Continue Reading

Bankruptcy lawyer discusses some general information regarding a Chapter 7 bankruptcy

Many individuals file for Chapter 7 bankruptcy. This type of bankruptcy is creates a fresh start for the debtor by discharging their all of their debt through liquidation. Upon filing for a Chapter 7 bankruptcy a bankruptcy court reviews the individual’s finances. The bankruptcy trustee then compares the debtor’s assets and income to their liabilities.…Continue Reading

Ritz Camera & Image files Chapter 11 bankruptcy protection

Ritz Camera & Image filed for Chapter 11 bankruptcy protection in June 2012. Ritz Camera is the largest specialty camera store chain in the U.S. Chapter The retailer faced liquidity problems and also had unprofitable stores. Under Chapter 11 bankruptcy, a corporation is protected for creditors and must reorganize its business. For Ritz Camera, that…Continue Reading

Madoff bankruptcy trustee tries to take legal action to block hedge fund manager’s settlement

In 2009, Bernard Madoff pleaded guilty to conducting an illegal Ponzi scheme. He is currently in federal prison, serving a 150-year sentence. Now, Irving Picard, the trustee for the case, has asked a judge to stop a $410 million settlement. This settlement will clear the case of a hedge fund manager who supposedly invested in…Continue Reading

Electronic mortgage registry settles with Delaware

System designed for simplicity causes damages MERS stands for the Mortgage Electronic Registration System. This system is designed to facilitate the transfer and recording of mortgages with ease because it is used throughout the nation. On July 13, 2012, Thomson Reuters wrote that MERS settled a case with the State of Delaware. According to the…Continue Reading

Judge tolls interest and fees on a loan and prevents foreclosure

A plaintiff in a foreclosure case, the mortgagee, wanted to foreclosure the defendant’s property according to a January 23, 2012 New York Law Journal Article. The defendant countered this, asking for dismissal. The defendant also wanted to toll, or delay the imposition of, the loan’s interest and fees from December 2009 to the present. This…Continue Reading

Auto loans: a new subprime lending area?

In recent years, auto loans have proved to be the safest for creditors. According to the Washington Post in an article from July 6, 2012, for example, Americans faced a rocky mortgage market during the same time. It seems that Americans are more likely to walk away from the home than to default on their…Continue Reading

County and its unsecured creditors want more time under bankruptcy protection

Jefferson County, Alabama, home of Birmingham, is currently under Chapter 9 bankruptcy protection. According to a Thomson Reuters August 1, 2012 article, it has been under bankruptcy protection since November 9, 2011. On September 28, 2012, it is supposed to present a plan to the court outlining its new financial plan, but the county would…Continue Reading

Olympic bankruptcy

At least two families of Olympic athletes are filing for bankruptcy, according to the New York Times in an August 8, 2012 article. Studies show that the biggest predictors of bankruptcy are medical problems and unemployment. Contrary to popular belief, it is not overspending. Gymnast Gabby Douglas’ mother has recently filled bankruptcy. She is a…Continue Reading

Large bankrupt New York law firm asks ex-partners for $104 million

A July 11, 2012 Thomson Reuters article discussed the reasons and conditions for the $103.6 million request by bankrupt law firm Dewey & LeBoeuf. The firm is the largest U.S. law firm to declare bankruptcy. It also had offices worldwide. In May, it filed for Chapter 11 bankruptcy. The chief restructuring officer held a meeting…Continue Reading

Proposed legislation will better regulate medical debt collection

Banks often hire debt collection agencies to collect long outstanding debts that borrowers owe. The Fair Debt Collection Protections Act (FDCPA) was enacted to regulate the ways in which debt collectors may interact with the borrowers. The regulations provide for penalties to the debt collectors who break rules and harass those in debt. Senator Al…Continue Reading

A lobbyist fighting against the banks

Lobbyists are very influential in Washington. They sway policymakers on all types of issues. Banks have a group of powerful lobbyists. Consumers are at a slight disadvantage, but one lobby highlighted in the May 31, 2012 edition of the New York Times lobbies for strict bank regulations, on the side of the consumers. The Times…Continue Reading

Libor scandal affects consumers too writes a Bronx bankruptcy attorney

After information regarding Libor manipulation surfaced, investigations began and fines were imposed on both sides of the Atlantic. Libor stands for London Interbank Offer Rate. This rate is calculated every weekday based on bank-supplied information and is one of the world’s most important numbers in finance. It determines how expensive it is for banks to…Continue Reading

Large New York law firm wants to award $700,000 in bonuses to employees that help it ‘wind down’ and finish the firm’s bankruptcy

The New York law firm Dewey and LeBoeuf, LLP went bankrupt for several reasons. One of the most prevalent reasons was its large guaranteed compensation packages and according to a July 5, 2012 Wall Street Journal article, the firm wants to keep it that way. The firm has 52 employees right now. Many attorneys and…Continue Reading

U.S. commonwealth’s bankruptcy request for public pension fund denied

United States bankruptcy law says that commonwealths and states cannot file for bankruptcy. Recently, municipalities have done so. A June 5, 2012 NPR article discusses a commonwealth—the Commonwealth of the Northern Mariana Islands—whose pension fund wishes to file for bankruptcy. The impact of this decision could be enormous. The case rests on the issue of…Continue Reading

For American Airlines, layoffs, reduced benefits and greater productivity are not enough–retiree benefits are on the line

Since 2001, AMR, American Airlines parent company, has lost $10 billion while other airlines became profitable—at least for the past few years. Last November, the carrier filed for Chapter 11 bankruptcy protection. Now, AMR is suing to stop providing healthcare and life insurance benefits for its retired employees, according to a July 6, 2012 Washington…Continue Reading

What do bank downgrades mean for consumers?

Over the past few years, the banking and financial industry has had its reputation tarnished. Every few weeks, in part to sovereign debt crises and shaky markets, banks have had their ratings downgraded. A June 22, 2012 NPR (via AP) article explains what this means for those besides governments and large corporations—consumers. The Federal Deposits…Continue Reading

Monroe College receives recognition for debt reduction and financial literacy initiatives

Monroe College, with campuses in the Bronx and Westchester, New York, as well as Syracuse University and Shaw University in Raleigh, North Carolina, each received recognition and a $10,000 grant from USA funds. The three colleges had outstanding programs for financial literacy and debt reduction according to a June 21, 2012 Daily News article. Monroe,…Continue Reading

Large New York-based multinational law firm tried to end its leases after it filed bankruptcy

Recently, the bankrupt law firm Dewey and LeBoeuf tried to terminate 25 leases. Fourteen of these leases were throughout the United States and the rest were in other countries according to a June 20, 2012 Thomson Reuters article. As the company shuts down, it has realized that it had no use for the office space,…Continue Reading

Mortgage rates stay at all time low for second week

More people bought previously occupied homes in May. That equaled the fastest growth in two years. A June 28, 2012 NPR article explains why low mortgages rates are beneficial for the current economy. Thirty-year loans stayed at 3.66%, a record low. That is an incentive for some to take out new mortgages. The interest rate…Continue Reading

Proposed law seeks to limit debt collectors in nonprofit hospitals

Patients in nonprofit hospitals have been reporting recently that they have been questioned and harassed by debt collectors. Often, this occurs even before treatment and debt collectors even solicit patients in the emergency room according to NPR’s June 27, 2012 article. Tore solve this issue, there have been congressional hearings called for by Senator Al…Continue Reading

Report says reverse mortgages are on the rise

A reverse mortgage is when a homeowner takes out a loan against their home. Reverse mortgages are available to people of age 62 and older and this type of loan is on the rise, according to a New York Times article published June 28, 2012. Over four times as many people aged exactly 62 took…Continue Reading

Bankruptcy does not prevent airline crash suit, judge rules

Air carriers Pinnacle Airlines Corp. and Colgan Air, filed for bankruptcy. The companies provided services for Continental Connection. A May 15, 2012 New York Law Journal article discussed a Continental Connection/Colgan flight that had crashed before the bankruptcy, near the Buffalo Niagara International Airport . The Chapter 11 bankruptcy was designed for airline reorganization. A…Continue Reading

In hopes of a management-union deal at American Airlines, judge delays ruling on union contracts

American Airlines, under Chapter 11 bankruptcy protection since November, is trying to save $1.25 billion in labor costs. According to a Thomson Reuters June 22, 2012 article, other airlines have gone through this process before and it made them more competitive. The labor cutting measures targets pilots, flight attendants and some ground crew. American Airlines…Continue Reading

Federal agency takes over pensions from large New York law firm during its bankruptcy

The Manhattan law firm Dewey & LeBoeuf recently filed for bankruptcy. Unfortunately, its pensions were underfunded by $80 million, according to a June 18, 2012 New York Law Journal article. The Pension Benefit Guaranty Corporation (PBGC) is the federal agency taking over Dewey and LeBoeuf pensions. The PBGC will provide benefits to Dewey and LeBoeuf…Continue Reading

Lower interest rates do not necessarily mean higher consumer borrowing

Recently, interest rates in have fallen.  Even though low interest rates mean that borrowing costs are low, businesses have used these low borrowing costs to their advantage much more than consumers according to a June 9, 2012 New York Times article. Consequently, during the first quarter 1 of 2012, businesses were borrowing more than ever…Continue Reading

A turnaround for American Airlines

Bankruptcy plans and American Airlines labor relations challenges were discussed in a past post, but a June 15, 2012 US News article discussed positive strives the carrier is making. While under Chapter 11 bankruptcy protection, the airline, a large company, is shielded from creditors while it restructures its business. Revenue from American’s Latin America flights…Continue Reading

Lenders obligated to provide credit score reports to rejected applicants

A policy began in July of 2011 requiring lenders to notify applicants if are rejecting a free copy of the credit score used to make the decision as mentioned in a July 9, 2011 New York Times article.  Additionally, applicants that are adversely approved, that is approved, but not at the best possible rates, must…Continue Reading

Labor and union contracts holding American Airlines from exiting bankruptcy

American Airline’s parent company, AMR, recently filed for Chapter 11 bankruptcy protection. Articles have reported on the idea of a merger with US Airways, but after years of talk between labor groups and management, that idea seems to be out of the picture, putting pressure on AMR to resolve the nation’s third-largest airline’s finances by…Continue Reading

Local New York bank faces charges on mortgage fraud

  Arrests! Conspiracy! Grand larceny! 25-year prison sentences! Mortgage fraud! These are not the terms that you want to hear with regards to your bank and its former employees, but Abacus Federal Savings Bank is now facing allegations related to mortgage fraud, according to a June 1st, 2012 New York Times article. Abacus, a bank…Continue Reading

Bankruptcy discharges student loan debt in unique case

Federal bankruptcy law states that student loan debt cannot be discharged with bankruptcy except through rare circumstances under the “undue burden” standard. A May 25th, 2012 New York Law Journal profiled a case that involved an individual with a diagnosis of Asperger Syndrome, a form of autism. The U.S. Bankruptcy Court of the District of…Continue Reading

New York court rules in favor of bank in foreclosure case

A New York court ruled against a homeowner on his motion for a summary judgment to dismiss his mortgage foreclosure action, as reported by the New York Law Journal in an April 11th, 2012 article. The homeowner’s mortgage loan was modified in accordance with the guidelines established by the Home Affordable Modification Program. The homeowner…Continue Reading

Mortgage servicers follow new guidelines

According to a New York Times news article published April 10th, 2012 the Consumer Financial Protection Bureau outlined a preliminary plan to address a lack of clearness and accountability among mortgage servicers. “For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to homeowners in…Continue Reading

Bronx bankruptcy attorney discusses New York rehabilitation agency’s bankruptcy

  Daytop Village, one of New York’s oldest and largest drug rehabilitations agencies announced that they filed for a Chapter 11 bankruptcy protection, as reported by the New York Times in an April 6th, 2012 news article. In a statement released to the media, Daytop stated that they filed because of “extreme financial pressure from…Continue Reading

Credit card interest rates on the rise

Interest rates on credit cards have increased in the last three months of this year, as reported by a New York Times news article published on April 10th, 2012. In the last year the average annual interest rate has increased roughly 4 percent, making the current interest rate average 12.46 percent. The credit-card industry has…Continue Reading

Bronx bankruptcy attorney comments on the number of bankruptcies dropping

Records have shown that bankruptcies filed in 2011 dropped from previously years, as reported by the New York Times in a January 12th, 2012 news article. According to the Credit Slips blog by Robert Lawless, a bankruptcy law professor at the University of Illinois College of Law, reported that roughly 1.4 million bankruptcies were filed…Continue Reading

Federal loan limit increases

The New York Times reported in a January 26th, 2012 news article that the Senate approved for to raise the federal debt limit. This will allow President Obama to borrow $1.2 trillion in an effort to keep the government operating at the current level. The debt increase was approved in a close vote 52-to-44 with…Continue Reading

New bureau created to help trouble borrowers

  The Consumer Financial Protection Bureau, (CFPB)  is now accepting complaints, questions and concerns from mortgage lenders. In a January 27th New York Times article it was reported that the bureau which originally started in 2010 was recently reformed to better protect and inform consumers on risky loans. In addition the bureau’s goal is to…Continue Reading

Consumer’s confidence leads to a stronger economy

Analysts are reporting that consumers appear to be gaining more confidence in the economy, as reported by The New York Times in a January 9th, 2012 news article. People borrowing money increased significantly in November, reaching the largest amount in the past decade. More consumers were obtaining loans and using their credit cards. Analysts explain…Continue Reading

Major American bus company files for bankruptcy

Numerous airlines have filed for bankruptcy and now the same troubles have reached ground transportation. In a January 3rd, 2012 New York Times article it was reported that Coach America filed for bankruptcy protection. The company, which is one of the country’s biggest bus operators, filed for a Chapter 11 protection in a Delaware bankruptcy…Continue Reading

Bronx bankruptcy lawyer comments on Lee Enterprises filing for bankruptcy

Bronx bankruptcy lawyer comments on Lee Enterprises filing for bankruptcy Bankruptcy protection hits the news. The New York Times reports in a December 12th, 2011 article that Lee Enterprises filed for Chapter 11 bankruptcy. Lee Enterprises the third-largest newspaper publisher, publishing 48 daily newspaper sought for the court’s protection to refinance nearly $1 billion in…Continue Reading

Mets bring in another player for financial support

New York Mets bring in another player for financial support The New York Mets baseball team announced that they have enlisted the help of CRG Partners, a company that assists in “special talents financial advisory work, restructuring and reorganization, and turnaround management.” The New York baseball team openly admitted that they were in need of…Continue Reading

Bronx bankruptcy lawyer comments on New York jurisdiction in Federal Housing cases

  An October 13th, 2011 New York Law Journal article reported that the Federal Housing Finance Agency filed 13 of their lawsuits against some of the world’s largest financial institutions in the New York federal court . The agency additionally filed four in the New York state court and one in the Connecticut court system.…Continue Reading

Pennsylvania’s state capital heads to bankruptcy court

  Harrisburg, the capital of Pennsylvania filed for bankruptcy against the wishes of both the mayor and Governor Tom Corbett, as reported by The New York Times in an October 12th, 2011 news article. Harrisburg’s City Council apparently held a meeting discussing whether or not to declare the city bankrupt and after a 4-to-3 vote,…Continue Reading

Bankruptcy court appoints new leader for solar energy company

  After filing for bankruptcy the California energy company, Solyndra, struggles to restructure itself, as reported in an October 13th, 2011 New York Times article. In an effort to help the company with its financial struggles the bankruptcy court handling the case approved the hiring of a new officer, R. Todd Neilson. Mr. Neilson previously…Continue Reading

Citibank Vice President pleads guilty to embezzlement

Citigroup’s vice president pleaded guilty to embezzlement charges as reported by the New York Law Journal in a September 7th, 2011 news article. The Vice President admitted to embezzling over $22 million and agreed to turn over majority of his estate which includes real estate in Brooklyn, Manhattan, and New Jersey, and numerous luxury cars.…Continue Reading

The New York Times criticizes President Obama for not nominating Elizabeth Warren as director of the new Consumer Financial Protection Bureau

The New York Times published an editorial criticizing President Barack Obama for passing over Elizabeth Warren as director of the newly created Consumer Financial Protection Bureau. “Consumers vs. Banks,” The New York Times, Sunday, July 24, 2011. Elizabeth Warren is a Harvard law professor and the main person behind the creation of the new Consumer…Continue Reading

Legislation Pending for Student Debtors

The rising cost of higher-level education in the U.S. has forced thousands of current and would be college students to take out loans to help pay for their education. According to a “New York Times” Op-Ed article published on August, 27 2011, many schools have pushed students into private loans to help alleviate the rising…Continue Reading

NYU Professors Suggest Changes to Housing Finance System

Recent concern over the mortgage crisis has send hundreds of economists scrambling to find solutions to the financial crisis, in particular the housing finance system. While many argue for the continuation of direct assistance to those struggling with their mortgages, three professors at NYU Stern have suggested an alternative approach. According to an August 30,…Continue Reading

Bank of America Accused of Reneging on Mortgage Agreement

  The attorney general of Nevada, Catherine Cortez Masto, is accusing Bank of America of going back on a broad loan modification agreement agreed upon in October 2008, says “The New York Times” in an August 31, 2011 publication. The settlement came at the height of investigations into the predatory loan practices of several large…Continue Reading

New York Attorney General declines to agree with large banks

  Large banks in New York are eager to reach a settlement agreement with Eric T. Schneiderman, New York’s Attorney General, as reported in an August 21st, 2011 New York Times article. Mr. Schneiderman, on the other hand, is dragging his feet in discussing the matter. Along with other state attorney generals, Mr. Schneiderman is…Continue Reading

Medical debt outranks other debt in bankruptcy survey

A new study has found that medical debt is the biggest contributing factor to people filing for a personal bankruptcy, as reported in an August 18th, 2011 New York Times article. The study reported that approximately 20% of people who filed for bankruptcy cited medical debt as the primary cause of their debt. This percentage…Continue Reading

Alabama County avoids bankruptcy but barely

  Alabama finally struck an agreement on how to deal with one of their county’s substantial debt, reported the New York Times in a September 16th, 2011 news article. The county’s debt was so high that if a bankruptcy would have been filed it would have gone down in American history as the biggest municipal…Continue Reading

Bronx bankruptcy attorney gives tips on freelancers applying for a mortgage

  With the job market still is not on stable ground many Americans have turned to freelance jobs to help pay the household bills. Unfortunately, income from freelance jobs can have a grave effect on a person getting or modifying their home mortgage, as reported in an August 26th 2011 article. For those freelancers looking…Continue Reading

Opting in to high debit card fees

Recently, the Consumer Federation of America made it a requirement for banks to give their patrons the choice to “opt in” or “opt out” of being able to overdraft their debit card transactions. If they “opt it” the bank will allow their debit card to still be processed even if there is not a sufficient…Continue Reading

New York Court Ruled that Collecting Agency Cannot Compel Arbitration on Behalf of Verizon & AT&T

A recent ruling, published in the New York Law Journal on September 9, 2011, has determined that the collection agency, Collecto, had no right to force arbitration on collection claims from AT&T and Verizon on former customers who failed to pay their bills. Judge Spatt declared that under the Fair Debt Collection Practices Act, the…Continue Reading

Financial Concerns for Recently Widowed

Losing one’s spouse comes with additional financial woes on top of the emotional. According to a New York Times article published September 3, 2011, the recently widowed may be more prone to falling into financial pitfalls. The death of a spouse can leave many financial issues left unattended, and women often take on these concerns.…Continue Reading

The Fifteen Year Mortgage

New mortgage plans are emerging that may save borrowers money and entice some to take out these loan plans. In recent years, 15-year mortgages have become more popular. These shorter plans save money in the long run for many consumers but have their own risks. In an August 21, 2011 article in the New York…Continue Reading

Federal Government to Sue Seventeen Mortgage Institutions

A September 3, 2011 New York Times article reported that the U.S. government is preparing to file suit against several  financial institutions that sold around $200 billion in mortgage-backed securities to Fannie Mae and Freddie Mac that later fell apart. These new lawsuits are the most recent legal action being taken against banks that are…Continue Reading

Bank of America Restructures Top Management

Following a steady decline in stock values over the past few years, Bank of America is letting go of two top executives. According to the September 7, 2011 “New York Times,” Sallie Krawcheck and Joseph Price are both being relieved from their top management level positions. Bank of America has struggled since the financial crisis…Continue Reading

Picking up the financial pieces after losing a spouse

Losing a spouse is an extremely gut wrenching event that completely changes a person’s life, especially their financial situation. A New York Times article published September 2nd, 2011 discussed the money challenges many widows face today. One challenge is many widows receive a large sum of money from an insurance settlement but many spend their…Continue Reading

Supporting your child after you are gone

Parents always want the best for their children they encourage them to achieve greatness. But sometimes being over involved in a child’s life can lead to a child never being able to be an independent mature adult. Of course then the next issue that a parent has to deal with is, who is going to…Continue Reading

Massachusetts Port Authority dismissed from 9/11 lawsuit

In the last lawsuit related to the events of September 11, 2011, a federal judge dismissed the claim against the Massachusetts Port Authority, the Associated Press reports. “NY judge releases Mass. Agency from 9/11 lawsuit,” Associated Press, Wednesday, July 27, 2011. Mark Bavis, 31, died when he was aboard United Airlines Flight 175, the second…Continue Reading

Bronx Lawyer Discusses New Refinancing Plan

The White House may have plans to refinance loans owned by government-controlled mortgage companies Fannie Mae and Freddie Mac. These plans may help homeowners who are having difficulty paying high-interest rate mortgages. According to “A Lifeline for Homeowners”, published in the New York Times on August 26, 2011, a refinancing plan will seek to lower…Continue Reading

The housing market in the Miami area is showing signs of improvement

The very depressed housing market in the Miami area is showing signs of improvement, The New York Times reports. “Affluent Buyers Reviving Market for Miami Homes,” The New York Times, Tuesday, July 26, 2011. The housing market in South Florida has been in real bad shape in recent years. In Miami-Dade County, one out of…Continue Reading

The Consumer Financial Protection Bureau is overseeing the terms of mortgages

The recently created Consumer Financial Protection Bureau is starting to oversee the terms of mortgages and looking for ways to make them better for borrowers, The New York Times reports. “Sorting Through Lending Costs,” The New York Times, Sunday, July 24, 2011. The Consumer Financial Protection Bureau (C.F.P.B.) is legally required by July 2012 to work…Continue Reading

New Fees for Debit Card Use

  The use of debit cards has become pervasive throughout everyday life for many of us. Their ease of use and safety features provides us with convenience when purchasing goods and services. However, their widespread use may become slightly less common. According an article published on August, 27 2011 in the New York Times, some…Continue Reading

How people are reacting to the foreclosure crisis in Spain

  In a country considered by many to have the harshest foreclosure laws in Europe, protesters in Spain are blocking evictions, The New York Times reports. “Foreclosure Protesters in Spain’s Cities Now Go Door to Door,” The New York Times, Saturday, July 16, 2011. In Spain the borrower is in absolute deep trouble if he or…Continue Reading

How Bank of America is dealing with Countrywide Home Loans’ settlement

  Bank of America faced difficult challenges after acquiring in 2008 Countrywide Home Loans because this acquired bank was in trouble with the Federal Trade Commission for overcharging borrowers, The New York Times reports. “Countrywide to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011. According to the Federal Trade Comission…Continue Reading

The $108 million Countrywide settlement will be distributed

  Countrywide Home Loans, who has agreed to pay $108 million in a settlement for allegedly charging excessive fees, will finally get to distribute the money to affected borrowers, The New York Times reports. “Countrywide to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011. The Federal Trade Commission (F.T.C.) charged…Continue Reading

Appaloosa Management sold off a good part of its holdings in Bank of America

Appaloosa Management, one of Bank of America’s most outspoken supporters, has apparently sold a significant amount of its stake in Bank of America, the New York Times reports. “Bank of America Shares Fall to Lowest Point in 2 Years,” The New York Times, Tuesday, August 9, 2011. Appaloosa Management is the big hedge fund run…Continue Reading

More people are getting adjustable-rate mortgages

  More people are becoming interested in adjustable-rate mortgages, The New York Times reports. “In Mortgages, ARM Is Back,” The New York Times, Saturday June 25, 2011. An adjustable-rate mortgage (ARM) is a loan in which the interest rate is fixed for a fixed period of time and adjusts annually after that. And according to…Continue Reading

Bank of America’s stock has been downgraded to underperform from outperform

  Mike Mayo, a well-regarded banking analyst, downgraded Bank’s of America’s stock to underperform from outperform, the New York Times reports. “Bank of America Shares Fall to Lowest Point in 2 Years,” The New York Times, Tuesday, August 9, 2011. Bank of America is facing a lot of setbacks recently. Shares in Bank of America…Continue Reading

Fourteen people, including four lawyers, are charged in mortgage fraud

  Fourteen people, including four lawyers, were indicted for allegedly mortgage fraud, the New York Law Journal reports, “Four Lawyers Charged in Mortgage Fraud,” New York Law Journal, Friday, August 5, 2011. All fourteen are being accused of conspiracy to commit bank and wire fraud. According to the accusations, they used straw buyers and false…Continue Reading

The New York Times supports a strong an independent Consumer Financial Protection Bureau

The New York Times published an editorial calling for a strong and independent Consumer Financial Protection Bureau. “Consumers vs. Banks,” The New York Times, Sunday, July 24, 2011. Congress created the new Consumer Financial Protection Bureau (C.F.P.B.) when it approved the Dodd-Frank law to overhaul financial regulations after the credit crisis. The editorial reminds readers…Continue Reading

Advising against illegal practices involving the collection of decedent’s debts

  If a debt collector is going to communicate with the debtor’s spouse, parent (in case of a minor), guardian, executor, administrator, or someone with the authority to pay the decedent’s debts, the Fair Debt Collection Practices Act (FDCPA), as well as related case law, prohibits the creditor from several practices, the New York Law…Continue Reading

How Countrywide Home Loans incurred in abusive practices against borrowers

According to the Federal Trade Comission, Countrywide Home Loans overcharged borrowers for default-related services, gave borrowers incorrect information about how much they owed and on their mortgages, or added fees and escrow charges without notice, The New York Times reports. “Country to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011.…Continue Reading

The decision not to nominate Elizabeth Warren as director of the Consumer Financial Protection Bureau

    Many people expected Elizabeth Warren, a Harvard law professor and the main person behind the creation of the new Consumer Financial Protection Bureau, to be nominated the new director of this agency. But that did not happen, as President Barack Obama nominated Richard Cordray, former Attorney General of Ohio, to lead this bureau.…Continue Reading

Concerns about the foreclosure crisis in Spain

  In Spain, people are looking for ways to deal with a foreclosure crisis affecting this country, The New York Times reports. “Foreclosure Protesters in Spain’s Cities Now Go Door to Door,” The New York Times, Saturday, July 16, 2011. Many people consider Spain to have the harshest foreclosure laws in Europe. The borrower does…Continue Reading

AIG is suing Bank of America for $10 billion over allegedly overvalued mortgages

    American International Group Inc. (AIG) filed a lawsuit against Bank of America Corp. for more than $10 billion dollars, claiming the bank sold residential mortgage-backed securities that were overvalued, the New York Law Journal reports. “AIG Sues Bank of America For $10 Billion Over Mortgages,” New York Law Journal, Tuesday, August 9, 2011.…Continue Reading

A class action has been filed against Cooley Law School for allegedly inflating job statistics

    Students and graduates filed a class action against Thomas M. Cooley Law School alleging fraudulent inflation of post-employment graduation and salary statistics to lure prospective students, the New York Law Journal reports. “Suits Accuse New York Law School, Thomas Cooley of Job Statistics Fraud,” New York Law Journal, Thursday, August 11, 2011. According…Continue Reading

Warnings about co-signing a mortgage

  People should be very careful when they are being asked to co-sign a mortgage, advises a columnist from the New York Times. “Co-Signing on the Dotted Line,” The New York Times, Sunday, August 7, 2011. Many people fall into the trap of what it seems to be just another step to help out a…Continue Reading

A class action has been filed against New York Law School for allegedly inflating job statistics

Students and graduates filed a class action against New York Law School alleging fraudulent inflation of post-employment graduation and salary statistics to lure prospective students, the New York Law Journal reports. “Suits Accuse New York Law School, Thomas Cooley of Job Statistics Fraud,” New York Law Journal, Thursday, August 11, 2011. According to the lawsuit,…Continue Reading

Concerns about the success of efforts to protect consumers

Efforts in Washington to protect consumers are finding resistance. The most recent sign of resistance is the opposition from Republicans in Congress to the nomination of Richard Cordray as director of the newly created Consumer Financial Protection Bureau, The New York Times reports, “Former Ohio Attorney General to Head New Consumer Agency,” The New York…Continue Reading

A possible default and government downgrade will not significantly affect home loans nor credit cards

A possible government debt downgrade will not significantly affect home loans nor credit cards, The New York Times reports, “How a Debt Downgrade May affect Consumers,” The New York Times, Monday, July 26, 2011. Many are concerned that in Washington there will not be an agreement in time to avoid a possible default and debt…Continue Reading

The nomination of a new director for the Consumer Financial Protection Bureau

President Barack Obama announced that he would nominate Richard Cordray, former Attorney General of Ohio, to lead the new Consumer Financial Protection Bureau, The New York Times reports. “Former Ohio Attorney General to Head New Consumer Agency,” The New York Times, Sunday July 17, 2011. As Attorney General, Mr. Cordray aggressively investigated mortgage foreclosure practices.…Continue Reading

A new Web site to help people decide when to collect Social Security is available

There is a new Web site that helps people decide when to collect Social Security, The New York Times reports. “When to Collect Social Security? A New Calculator,” The New York Times, Tuesday, July 26, 2011. For two years retired economics professor Russell Settle and his partner Jeffrey Miller worked on a new program to…Continue Reading

The pros and cons of reverse mortgages

Despite the recent problems with reverse mortgages, they are still seen as an option, The New York Times reports, “Reverse Mortgages Are Here to Stay,” The New York Times, Saturday, June 25, 2011. In a reverse mortgage, the lender pays the homeowner instead of the other way around. Then the lender gets the money back…Continue Reading

Recent Statement of Policy clarifies communications involving collection of decedents’ debts

  In many cases, in a debtor-creditor relationship the financial institution may contact third parties such as the spouse, parent of a minor debtor, guardian, executor, administrator, or someone with the authority to pay the decedent’s debts. However, there is a fine line between what the creditor is or is not allowed to do when…Continue Reading

Bronx bankruptcy lawyer explains the Consumer Financial Protection Bureau

It is useful to understand in detail what is it what the recently created Consumer Financial Protection Bureau does and what it means for consumers. “Communications Involving Collection of Decedents’ Debts,” New York Law Journal, Thursday, August 11, 2011. On July 21, 2011 the Consumer Financial Protection Bureau opened after the signing of the Dodd-Frank…Continue Reading

The involvement of lawyers in collection efforts from creditors

Creditors usually get involved in many abusive practices to collect debt from consumers. Many collectors even get to the point of misleading debtors into believing that they may be facing legal action. That is why there are laws and cases that regulate the involvement of lawyers in collection efforts from creditors, the New York Law…Continue Reading

Bronx foreclosure defense law firm informs that Wells Fargo has agreed to pay $85 million over mortgages

Wells Fargo & Company, under fire for allegedly falsyfying loan documents and approving subprime mortgages with higher interest rates, agreed to pay a fine of $85 million imposed by the Federal Reserve, The New York Times reports. “Wells Fargo Agrees to Pay 85 Million Over Loans,” Thursday, July 21, 2011. According to the Federal Reserve,…Continue Reading

Bronx bankruptcy lawyer comments on new discrimination affecting the unemployed

The unemployed face bigger troubles in finding a job. The New York Times reported on July 26th, 2011 that employers looking to hire are less likely to hire those who are currently unemployed. After reviewing many of the job placement websites it was found that many hiring employers are advertising that they “strongly prefer” or…Continue Reading

Bronx bankruptcy attorney discusses recession’s impact on the Hispanic community

A new study shows that the Hispanic population has been hit the hardest by the recession. A study conducted by the Pew Foundation and using data collected by the Census Bureau reported, that the average Hispanic household wealth has decreased the most during the recession then any other racial group. According to a July 26th,…Continue Reading

Bronx bankruptcy law firm concerned about how investors and consumers will react to a possible government debt downgrade

Financial advisers are concerned that the talk in Washington of a federal budget crisis and possible default will make people overreact to these current problems. But at the same time, they warn investors and consumers to act very carefully. The New York Times reports. “How a Debt Downgrade May affect Consumers,” The New York Times,…Continue Reading

Bronx bankruptcy law firm advises people with stocks and bonds worried about a possible government debt downgrade

People who have stocks and bond investments, especially retirees and pre-retirees, are getting anxious about talks in Washington of a federal budget crisis and possible default. Financial advisors are recommending a cautious approach to deal with stocks and bond investments, The New York Times reports. “How a Debt Downgrade May affect Consumers,” The New York…Continue Reading

Bronx bankruptcy law firm informs that a possible default and government downgrade will not significantly affect money market funds

A possible government debt downgrade will not significantly affect the money market funds, The New York Times reports, “How a Debt Downgrade May affect Consumers,” The New York Times, Monday, July 26, 2011. Many are concerned that in Washington there will not be an agreement in time to avoid a possible default and debt downgrade.…Continue Reading

Bronx bankruptcy lawyer discusses settlement between credit card companies and government

Two major credit card companies have reached a settlement with the federal government in regards to a case filed against the companies back in October. The New York Law Journal reported in a July 21st, 2011, article that an Eastern District Judge had approved the settlement agreement reached between the federal government and Visa and…Continue Reading