A rise in interest rates forced more concessions, which were announced last month. The plan also imposes several years worth of rate increases on sewer users. New Financing After Bennett issues a written ruling, the county can close on about $1.8 billion in new financing on Dec. 3 that will be used to pay creditors. With the closing, the active part of the case will end, leaving only minor legal issues to be addressed, Patrick Darby, an attorney for the county, said in an interview. Within minutes of Bennetts decision, protesters opposed to the sewer rate increases were outside the courtroom heckling County Commission President David Carrington, who led the voting bloc that backed the bankruptcy.
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As to the obligation to pay child support and/or alimony, this is not dischargeable in a typical bankruptcy proceeding. In fact, the bankruptcy code states that this debt or obligation cannot be eliminated and the spouse who receives the support usually will not have to present anything to secure this position in a court of bankruptcy. Next, equitable distribution is where the divorcing couple value and distribute their assets such as money and property as well as their marital debt accumulated through the course of their marriage. A debtor spouse may or may not be able to discharge marital debt depending on the type of bankruptcy petition that is filed as well as the specific facts of their situation. As a result, this may pose problems, especially when only one ex-spouse files for bankruptcy. This is seen quite often in the area of joint credit cards, where one spouse bargains to be held responsible over the other. In a typical situation, the spouse discharges the credit card in bankruptcy, only to have the credit card company go after the debt from the non-bankruptcy spouse.
For the original version including any supplementary images or video, visit http://www.nj.com/south-jersey-voices/index.ssf/2013/11/your_legal_corner_equitable_di.html
US Justice Dept objects to LightSquared bankruptcy exit plans
Until Detroit s July filing, Jefferson County was the nations largest municipal bankruptcy. Negotiating Deals U.S. Bankruptcy Judge Thomas Bennett dismissed objections to the countys debt-reduction plan based on Whites analysis. The willingness of Alabamas most populous county to enter bankruptcy, along with the losses imposed on creditors, may make bondholders of other distressed municipalities more willing to negotiate outside of court. Taxpayer groups will look at Jefferson County and see that bankruptcy wont wipe away their obligations, Fabian said. It does take the thunder out of taxpayer groups who are looking to get into bankruptcy just to shed debt, because it shows that those taxpayers could also be put on the hook to contribute in the future, Fabian said. Some hedge funds benefited by purchasing defaulted bonds for about 65 cents to 70 cents on the dollar from banks that dumped the debt and received about 80 cents on the dollar as part of the bankruptcy plan, according to a person familiar with the purchases who asked for anonymity to discuss the matter.
For the original version including any supplementary images or video, visit http://www.bloomberg.com/news/2013-11-22/jefferson-county-s-bankruptcy-left-few-winners-as-debt-forgiven.html
How Bankruptcy Affects College, Grad School Financing
“This decision disrupts the judicial recovery process, allowing some lenders to seek debt payments in Brazil and Austria,” Costa said. “Those funds were raised abroad to be used in Brazil. The judge didn’t take that into consideration.” OGX has two foreign subsidiaries, OGX Internacional and OGX Austria. The judge denied the request for those units on the grounds that bankruptcy protection should be decided in the countries where they are based, according to a copy of the judge’s decision. For the Brazilian operations, the judge’s decision gives OGX 60 days to come up with a restructuring plan. OGX creditors including California-based bond fund Pacific Investment Management Co (PIMCO) and New York-based investment fund BlackRock Inc will then have 30 days to endorse or reject the plan. OGX’s sister company shipbuilder OSX Brasil SA filed for bankruptcy protection on Nov 11. The company is expected to get court protection from creditors. Batista, 56, a dealmaker who once boasted he would become the world’s richest man, has seen his personal fortune plunge by more than $30 billion in the last 18 months as investors punished the share price of his listed companies.
For the original version including any supplementary images or video, visit http://news.yahoo.com/judge-partially-accepts-ogx-bankruptcy-protection-filing-lawyer-205527321–finance.html
American faces yet another crucial hearing in merger battle
Nearly 1.2 million people filed for bankruptcy in 2012, according to reports by the Administrative Office of the U.S. Courts. That figure is down from a peak of more than 1.5 million in 2010. Filing for bankruptcy comes with consequences, though, including difficulty securing loans. The fallout can, in some cases, affect college financing. “Parents are ineligible to borrow from the PLUS loan program for five years after their discharge of debts in bankruptcy,” says Shane McClelland, an attorney based in Columbus, Ohio.
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Bankruptcy filing ‘very positive’ for Aaron Carter, publicist says
Bankruptcy Court in Manhattan, the DOJ’s U.S. Trustee Program said the plans would provide third parties with overly broad releases from potential legal claims. LightSquared, in bankruptcy since 2012, is fighting to keep control of its valuable spectrum amid a takeover push by Dish Network Corp. Three creditor groups have proposed plans that contemplate an auction for the assets, and Dish has already made a baseline bid of $2.2 billion. A fourth plan, proposed by LightSquared’s majority owner, Phil Falcone’s Harbinger Capital Partners, would restructure the company without an auction, with Harbinger maintaining control. LightSquared, which had planned a massive wireless network, filed for Chapter 11 protection after the Federal Communications Commission blocked it from using its spectrum amid interference concerns from the GPS industry.
For the original version including any supplementary images or video, visit http://www.reuters.com/article/2013/11/22/lightsquared-bankruptcy-idUSL2N0J720T20131122?type=companyNews&feedType=RSS
Fisker Karma fate goes from worse to worst with bankruptcy
Eastern Virginia District A quick way to catch up on the weeks news through our favorite photos. Alexandria Division Fairfax Skin Care Center Inc. 9735 St. Andrews Dr., Fairfax, Va. 22030 Type of filing: Chapter 7 liquidation Case number: 13-15188 Attorney: Joseph Michael Langone, 703-391-1161 Assets: Zero to $50,000 Largest unsecured creditor: Chase, $14,000 In-Home Support Services Inc. P.O. Box 1122, Culpeper, Va. 22701 Type of filing: Chapter 7 liquidation Case number: 13-15164-RGM Attorney: John C.
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The couple owed $1.7 million in back taxes from 2008 and 2009. Sharon Osbourne initially blamed an accountant but later took personal responsibility. Rapper Jeffrey Atkins, also known as Ja Rule, was sentenced to 28 months in prison in July 2011 for failing to file tax returns with the IRS. Atkins admitted that he did not file his taxes for five years.
For the original version including any supplementary images or video, visit http://www.cnn.com/2013/11/21/showbiz/aaron-carter-bankruptcy/index.html
Area bankruptcy filings for week of Nov. 25
The company originally set out to make green cars sexy, but it has been floundering for the better part of two years due to car fires , faulty batteries, design flaws, missed milestones set by the US government, a terrible Consumer Reports Review, and Hurricane Sandy . See, no luck. In 2009, the US Department of Energy (DOE) had agreed to loan Fisker $529 million for the Karma as part of an Obama administration vehicle development program. The Karma started rolling out in Jul. 2011, but by Feb.
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Judge denies bankruptcy protection for OGX foreign units
12 settlement with the U.S. Department of Justice didnt significantly change their plan of reorganization. As a result, they argued in a filing last week, theres no reason to ask creditors and stock holders to vote again on the plan. The settlement, if approved, will allow the debtors to promptly consummate their plan, close the merger, and emerge from their 2-year-long Chapter 11 case as a financially stable, fully competitive and viable business enterprise, the filing stated. American, AMR and various subsidiaries filed for bankruptcy on Nov. 29, 2011. If the judge approves their request Monday, theyre shooting for a Dec. 9 exit from bankruptcy and merger with US Airways.
For the original version including any supplementary images or video, visit http://www.dallasnews.com/business/airline-industry/20131124-american-faces-yet-another-crucial-hearing-in-merger-battle.ece