In a bill that is suppose to address the current health care issues facing the country there are a few surprises for debtors struggling under the weight of student loans. As of July 2010, all new federal student loans will be issued directly from the U.S. Department of Education, cutting out banks as middle-men. This [...]
It's been seven years since credit bureaus have been required by law to provide Americans with annual access to their credit reports, at no charge; but the the AnnualCreditReport.com web site created to manage the process has been overshadowed by a variety of companies claiming they can offer "free" credit health reports leaving many consumers confused [...]
After the Tribune Company filed its fifth request for an extension to file a bankruptcy reorganization plan without interference, some of the company's biggest creditors complained that it was unfair to be given only three business days to object to the company's extension request. Citing "serious concerns" about the extension, the lenders said Tribune was [...]
General Growth Properties Inc., announced that it has reached an agreement with Brookfield Asset Management Inc., Pershing Square Capital Management LP and Fairholme Capital Management LLC, to reorganize the second largest U.S. mall owner by infusing $6.55 billion into the company. Brookfield, Pershing Square and Fairholme will commit $6.55 billion of new equity capital at [...]
Unsecured Creditors and Chapter 11 Bankruptcy Traditionally, Chapter 11 bankruptcy left unsecured creditors with at least some equity in the reorganized company or part of the proceeds of a sale if nothing else. However, due to the recession and the massive amounts of losses hitting debtor companies and creditors alike, many unsecured creditors are being [...]
While most debtor-companies in Chapter 11 bankruptcy depend on financing from banks to fund their bankruptcy exits, there is an increase in the number of companies turning to high-yield bonds (junk bonds) to fund their bankruptcy exit. Junk bond sales have surged to records every month since December as companies contend with "wall of maturity" [...]
There seems to be an upsurge of anti-bankruptcy rhetoric aimed at indebted Americans to make them feel guilty about their financial circumstances which force them into bankruptcy. Since the critics can't honestly say that bankruptcy is not an effective way to discharge debt and get a fresh financial start, now many are saying that bankruptcy [...]
Many analyst watching Texas unemployment had shown a glimmer of hope when job gains were posted in January. However, a loss of 13,000 jobs in February erased January's meager gains. Currently, many of Texas' employers are implementing job losses and Texas' unemployment rate remains stagnant at 8.2 percent as of February. "The Texas unemployment rate [...]
In a report issued by Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, the Obama administration is measuring the performance of the foreclosure prevention program by a questionable standard. At the program's launch in February 2009, Obama officials said it would help 3 million to 4 million homeowners. But with only [...]
President Obama has signed the landmark $875 billion health care reform bill into law at the White House. In our previous blog we discussed changes that could take effect immediately. Below are some changes that could take effect by 2016: • New health insurance subsidies would be provided to families of four making up to [...]