On December 27, 2020, President Trump approved the Consolidated Appropriations Act, 2021. This is a $2.3 trillion bill that combines the $900 billion stimulus relief for the COVID-19 pandemic in the United States with a $1.4 trillion spending bill that prevents a government shutdown. The bill will provide stimulus payments of $600 for individuals and…

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According to an article in CPA Practice Adviser, 79% of U.S. adults are experiencing stress from financial instability during Covid-19. However, it’s good to know your home is safe during this time. On March 19, 2020, Governor Murphy announced  Executive Order No. 106 which prohibits removing individuals from their homes pursuant to an eviction or…

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On December 9th 2020, US Senator Elizabeth Warren and House Judiciary Committee Chairman Jerrold Nadler announced the possibility of a new bill called the Consumer Bankruptcy Reform Act of 2020. The Act will replace chapter 7 and 13 bankruptcy with a single system available to all consumers which would reduce filing fees and create a…

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PG&E (Pacific Gas and Energy) is struggling to come up with a plan to avoid filing for bankruptcy in the midst of constant blackouts and wildfires that have ravaged California. As California’s largest utility, the state is threatening to take over due to a lack of an agreement between the company, fire victims and its…

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On Friday, Oct 11, CNN Business reported that Murray Energy owned by Robert Murray, the “king of coal”, is slipping into “financial collapse”, thus marking another coal business plummeting into bankruptcy.  For coal miners and those in the coal industry, this means that the industry will likely become obsolete within the next few years among…

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The New York Attorney General’s office is trying to block the approval of a bankruptcy plan for the mortgage company Ditech. The New York AG office released a statement that objected to the sale of the company as a part of its bankruptcy deal that would release Ditech from any obligation to pay the $1…

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More bankruptcy judges are realizing that student loan debt decisions must be made in favor of the debtor. Student loan debt is the second highest consumer debt in America, but it is the hardest to reduce in court. The average student loan debt for a Bachelor’s degree is over $37,000 and does not include the debt adults accumulate…

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Elizabeth Warren, along with David Himmelstein, Deborah Thorne and Steffie Woolhandler, continue to face controversy over their paper published in the journal Health Affairs in 2005 and updated in 2009. This paper, based on surveys and testimonies from 1,800 Americans, estimated that 62% of bankruptcy cases are caused by medical bills. Warren’s paper opened a…

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Over 50% of Americans shop online or at discount stores such as Wal-Mart. Could this be a reason why Toys ‘R’ Us is preparing for bankruptcy? Toys ‘R’ Us is $5 billion dollars in debt. They are currently working on a loan to fund its potential bankruptcy. This is assumed to come before the holiday…

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BIG tax cuts! That is the anthem of Trump’s mortgage plan for affordable housing. His appointed Secretary of Treasury Steven Mnuchin announced a cap on mortgage interest deductions that will overall benefit the wealthy more than the intended middle class. Ironically, this plan will cost the United States $96 million, paid for by foregone taxes.…

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The Supreme Court faces a decision that could change Chapter 11 bankruptcy indefinitely.  In 2006, the Jevic Transportation Company was buyed out for $77.4 million by the private equity firm Sun Capital Partners.  Two years later, Jevic had to file for Chapter 11 bankruptcy because of too much debt. The bankruptcy put 1,785 drivers and…

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On April 28, 2016 Judge Lizabeth Gonzalez of the State of New York, denied Wells Fargo the right to foreclose against home owner Wakelyn Phillips. The denial basically means that the bank cannot demand payments from the homeowners for the mortgage. The judge made this decision based on a simple and basic premise that to…

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Award winning American rapper, singer, entrepreneur, investor and actor Curtis James Jackson III A.K.A. 50 Cent filed for chapter 11 bankruptcy. 50 Cent noted that he filed for bankruptcy as a means of reorganizing his finances.      Chapter 11 is a  repayment and restructuring of debt. If a person meets the income requirement to file for chapter…

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