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Bankruptcy Law Blog
Medical Bills The Leading Cause Of U.S. Consumer Bankruptcies
According to a recent study by NerdWallet Health, the leading cause of consumer bankruptcy filings in the U.S. is not credit card debt or mortgages, but rather health care bills. In fact, an estimated two million people in the U.S. will file [...]
‘Walk On By’ My Paycheck Processor, Chapter 7 Court, Says Warwick
As you may have heard, legendary singer Dionne Warwick filed for Chapter 7 bankruptcy in March, claiming only about $25,000 in assets but owing more than $10 million in California and IRS tax debt. According to reports, nearly $7 million of that [...]
Supreme Court Finally Defines 1841 Bankruptcy Term ‘Defalcation’
Did you know that you can be prohibited from filing for bankruptcy if you’re found to have committed defalcation? It’s true — although the term had never actually been defined until now. On Monday, the U.S. Supreme Court took up [...]
Report: Payday Loans Triggered $169 Million In Chapter 13 Filings
Using public data from the Consumer Financial Protection Bureau, a recent report by the Insight Center for Community Economic Development determined that the high fees and harsh contract terms for payday loans pushed so many people into Chapter 13 bankruptcy in 2011 [...]
American-US Airways Bankruptcy Merger Approved, $20 Mln Bonus Not
American Airlines’ parent company AMR Corporation filed for Chapter 11 bankruptcy in late 2011 in the hopes of reorganizing its debts, ditching some obligations, and putting itself in a strong position for future profitability. Last year, US Airways Group, Inc., [...]
U.S. Trustees Forced To Stop Auditing Personal Bankruptcy Cases
The Great Recession, or perhaps the federal sequester, has forced the U.S. Trustee Program to indefinitely suspend the audits it is required to perform on Chapter 7 and Chapter 13 personal bankruptcy cases. The audits are required by the 2005 bankruptcy reform [...]