When people with debt problems reach the conclusion it’s time to file for bankruptcy, many find it hard to justify the expense of hiring a bankruptcy lawyer. Even though bankruptcy services are generally quite affordable, taking on any new expense can feel like a mistake.
Earl Simmons, the rapper known as DMX, filed for Chapter 11 reorganization in July, but he’s not getting much relief -- and it’s not the first time. The performer tried filing for bankruptcy in 2009, but that case was dismissed by the bankruptcy court after it found DMX had “unreasonably delayed” the case to the detriment of his creditors.
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., indicated it was interested in merging with American, which would have to be approved by the bankruptcy court.
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 law called the Bankruptcy Abuse Prevention and Consumer Protection Act, but apparently even bankruptcy trustees can't keep things going without money.
In January Casey Anthony, the woman who was charged and then acquitted of killing her 2-year-old child, filed for Chapter 7 bankruptcy. She owes some $500,000 in legal fees, along with other debts that bring her total liabilities to about $792,000. She claims $1,100 in assets.