Posts Tagged ‘Personal Bankruptcy’

Spirito, Bourey defend People Express loan to Newport News City Council

Spirito said the the leadership of People Express and its proposed destinations seemed strong enough to help fill the gap that AirTran left when it stopped flying out of Newport News in 2012.

The airport commission decided in a closed meeting in 2014 to guarantee a line of credit for People Express, which already was more than $1 million in debt. At the time, the airline also was being sued in Newport News Circuit Court for $50,000 of unpaid credit card bills. The airlines founder, Michael Morisi, had filed for personal bankruptcy five years earlier.

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Spice Modern Steakhouse files for bankruptcy — for the fourth time

Spice Modern Steakhouse and parent company Level 1 Inc. claimed $419,865 in liabilities and $76,464 in assets.

But much of the debts are tied up with owner Manuel and Brea Tato, who filed a personal bankruptcy claim Tuesday with $6.4 million in debts.

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How will a late or skipped payment affect your mortgage?

Once you purchase a home, you get into the familiar habit of writing out a check for the mortgage each month. This can be a comforting ritual, as each payment to the lender gives you more ownership of the property. But there can be times when you dread the payments approaching due date.

Perhaps it has been a tough month for your bank account and you need to wait until your next paycheck arrives in the middle of the month. Maybe you have suffered a job loss and are unable or unwilling to cut such a large check each month while seeking employment. It could be that the payment simply slipped your mind and you sent it out later than expected.

Thankfully, lenders are often forgiving if your payment comes in later than expected. And if your budget is strained enough that you are having trouble paying your mortgage, there are several options for relief available.

Paying late

Mortgage payments are due on the first of the month, and homeowners are encouraged to have the check ready for this date. But lenders are typically more flexible about what they consider an on-time payment.

For example, a payment mailed out on the first of the month will likely not be considered late if it arrives a few days later. Kevin Graham, writing for the retail mortgage lender Quicken Loans, says lenders often extend this grace period through the first 15 days of the month. Your loan paperwork will stipulate the acceptable range for payments.

If your payment arrives outside the grace period, youll have to expect a penalty. MC Postins, writing for SFGate, says the lender often charges a late fee of 5 to 10 percent of the principal and interest portion of the mortgage. Youll need to include this fee on the next mortgage check in order to stay current on your payments.

On the bright side, a late fee wont have any effect on your credit standing. The National Association of Realtors says that while lenders will report a missed payment to the credit bureaus, theyll stay mum on late payments.

Check with your lender to see what method they use to determine a late payment. Some may decide that a payment is on time if the postmark shows that it was sent within the grace period, but others will decide that it is late if it arrives outside this timeframe.

Missing a payment

There are more worrying consequences if you are late on your payment by more than 30 days. At this point, the lender considers that you have skipped a payment.

Some homeowners in a financial crunch have deliberately withheld mortgage payments to get a lenders attention. Marcie Geffner, writing for the financial site Bankrate, says this action is intended to convince the lender to modify their loan. However, the negative effects are sure to outweigh any benefits from a revised mortgage.

While a lender may be willing to work with you to make your monthly payments more affordable, youll still have to pay the skipped payment along with any penalties. This added expense can put a greater burden on your budget in the upcoming months, increasing the risk that youll be late on a payment or miss it entirely.

Graham says lenders will report a missed payment to the credit bureaus, which will lower your credit score. If you previously had a good credit record, a missed payment can knock your score down by 100 points or more. A single late payment can be quickly forgiven if you resume a schedule of on-time payments, but will stay on your credit record for seven years.

A reduction in credit score can affect you in many ways. Geffner says youll have more trouble qualifying for a credit card, vehicle purchase, or mortgage refinance. You may also be required to make cash deposits before starting a utility, cable TV, or other service.

Depending on your contract, a late payment can establish more punitive conditions. The National Association of Realtors says some lenders may increase your interest rate or limit the line of credit you can take out against the homes equity.

A lender is unlikely to start foreclosure proceedings against you if you miss one payment. However, they will likely start this process if three months pass and they have not received any payments.

Relief

If you know you are going to be having trouble making your next mortgage payment, contacting the lender is often the best course of action. Elizabeth Weiss, writing for the real estate site Zillow, says informing the lender of your difficulties in writing is a good first step toward resolving the situation. Send this letter in advance instead of waiting until your payment is overdue.

You may be able to negotiate an agreement with the lender. If you expect that your financial troubles will be temporary, the Federal Trade Commission says you can offer to make up the late payment with penalties by a certain date. You might also work out a plan to add a missed payment in installments to your future checks.

Some buyers will qualify for forbearance, a modified payment schedule to help them through a temporary rough patch. In this situation, the lender will reduce or suspend the payments for a certain number of months. After that point, the buyer will have to resume regular payments and make up the missed contributions with a lump sum or regular additions to the mortgage check.

Lenders may agree to a loan modification for homeowners who are anticipating a longer financial hardship. The lender may give you more time to pay off the loan or lower your interest rate. They may also forgive some of your debt or even lower the amount of principal left on the property.

The National Association of Realtors says buyers may want to consider missing a payment on a separate bill instead of forgoing a mortgage payment. While this option will still hurt your credit score, the impact may not be as bad as a skipped mortgage payment.

You can also consider getting a home equity line of credit to reduce your debt in other areas, such as car payments or credit card bills. This strategy will make it easier for you to meet your monthly payments, although you may have to work to limit your spending to keep a stable budget.

If you are looking to move out of your home, you might consider selling it to move to a more affordable property. The Federal Trade Commission says you may have to settle for a short sale or deed in lieu of foreclosure; you wont see any profit in these transactions, but you wont be saddled with a mortgage debt you are unable to pay.

Declaring personal bankruptcy may allow you to set up a more affordable repayment plan or cancel your debt, but it should also be considered a last resort. This action can severely affect your credit score, and will remain on your record for 10 years.

Homeowners who are facing difficulty with their mortgage can also attend free or low cost counseling to help with their situation. This service is offered by the Department of Housing and Urban Development and nonprofit organizations such as the Homeownership Preservation Foundation.

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Politics: How The Election Educated Voters on Business Economics

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The Impact of the Growing National Debt

It is undeniable that if its left unchecked, the rising Federal debt will have a negative impact on corporate America. Just like the situation when youre dealing with your household finances, you cannot outspend your income indefinitely without it having negative consequences on you personally, as well as others that you interact with.

In an extreme example, if your household spending were left unchecked, you might have to file personal bankruptcy. Obviously, that negatively affects you and your family, but it also affects a variety of people and businesses that you deal with. That could include a bank where you have to negotiate a debt restructuring or forgiveness. You may forgo vacations for several years, purchase fewer discretionary goods, donate less to charities, and so on.

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Get those creditors off your back! Call Richard P. Busse Attorney at Law and see how bankruptcy might help!

If you are facing difficulty meeting your personal obligations, filing for protection under Chapter 7 or Chapter 13 of the federal bankruptcy laws may be all you need to get a fresh start.

A personal bankruptcy petition will immediately put a stop to threatening calls, letters or other actions.

You want an attorney who can carefully examine your situation to determine whether bankruptcy is the right solution for you.

At the office of Richard P. Busse, Attorney at Law, in Valparaiso, I work with clients throughout Northwest Indiana who are considering filing for bankruptcy.

I dont run a bankruptcy mill. I take the time to learn as much as I can about your situation so that I can give you an honest assessment of whether bankruptcy is in your best interests.

I emphasize personal service and attention, working directly with you throughout the process, from the initial filing to the final disposition of your bankruptcy.

Richard P. Busse Attorney At Law

7 Napoleon St.

Valparaiso, IN 46383

(219)531-2859

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Court OKs Suit Against Gawker for Defamatory Comment

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New senator Rodriquez faces residency challenge

Berry, who also works on on the campaign for Senate candidate Janelle Sarauw, said her challenge is based on court documents available online from the US Bankruptcy Court, Middle District of Tennessee, which show a Kevin Rodriquez filed for personal bankruptcy there on Jan. 25. The case was dismissed on July 13.

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The New UAE Bankruptcy Law

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Take dispute to trial, judge tells Turner, Benton grain dealer

A trial will be necessary to settle a financial dispute between bankrupt Turner Grain Merchandising and a Benton grain seller, a judge said Thursday.

US Bankruptcy Judge Phyllis Jones will set a trial date after the first of the year.

Turner Grain Merchandising in Brinkley filed for bankruptcy protection in October 2014, about two months after it was closed down by federal grain inspectors who found no grain in bins that were certified as being full. The company listed liabilities of $24.8 million against assets of $13.8 million.

The dispute between Turner Grain Merchandising and KBX Inc. of Benton is an offshoot of a financial collapse that left farmers being owed millions of dollars for grain that Turner never paid for.

Turner and KBX this spring had attempted to reach a settlement in their dispute as part of the overall Turner Merchandising Chapter 7 bankruptcy proceedings. When that deal fell apart on March 3, Turner filed its own lawsuit a couple of weeks later.

During settlement attempts this summer, KBX said it owed Turner $887,806.04 for grain it purchased from Turner but also was due a setoff of $532,923.19 for corn that Turner bought from KBX but paid for with a hot check. That left a balance of $354,882.85.

Josh Silverstein, who specializes in bankruptcy law at the University of Arkansas at Little Rocks WH Bowen School of Law, said trials in such disputes are common. The trial — its really more of a hearing — is another way to make sure all creditors or shareholders are treated fairly, Silverstein said. Its a way to ensure that one creditor isnt favored over any others.

The same reasoning is behind a flurry of clawback lawsuits filed this summer against farmers who received Turner payments within 90 days of its filing for bankruptcy.

As part of the lawsuit that brought the two sides into the Little Rock courtroom Thursday, KBX in various court filings said Turner Merchandising Inc. shouldnt be allowed to enforce any of its contracts because KBXs dealings were with Turner Grain Inc., an entity that was not registered with the secretary of states office to do business in the state.

Turner Grain Merchandising argued that it never conducted business under fictitious entities.

Turner Grain Merchandising Inc. has been registered with the secretary of state for years; Turner Grain Inc. wasnt registered until Aug. 2.

In addition to the federal bankruptcy proceedings for Turner, the personal bankruptcy case of one of its top officials, Dale Bartlett of Marvell, continues to wind its way through court.

Two other lawsuits are pending in state courts. A group of farmers filed one suit in Lonoke County Circuit Court. In Poinsett County, Southern Rice and Cotton LLC filed in a similar suit in Harrisburg.

Both contend Turner Merchandising and its several business entities, including Turner Grain Inc., ran a Ponzi scheme of luring farmers with higher-than-market price offers for their grain, selling the grain to KBX and other dealers and then failing to pay many of the farmers and other businesses across Arkansas and into Mississippi and Missouri. Both lawsuits have trial dates set for next year.

Lawyers in those state cases — Kendel Grooms for the Lonoke County farmers and Lyndsey Dilks for Southern — have long challenged the Turner-KBX relationship, claiming KBX knew, or should have known, what Turner was doing and should have sounded an alarm. KBX is a defendant in those two lawsuits.

No criminal charges have been filed. The FBI has declined comment.

Business on 11/18/2016

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