bankruptcy
Biden’s Covid-19 Relief Plan Proposal
On February 5th, 2021, President Biden proposed his Covid-19 relief plan. His plan aims to ease financial struggle. In this 1.9 trillion relief package he introduced a $1,400 stimulus check restricted to people with lower incomes. If an individual makes $75,000 or below (couples who make $150,000 or below) they are entitled to receive full…
Read MoreNavient ordered to return $22 M
On February 9th, the New York Times reported that the government student loan provider Navient overcharged the government $22 million in student loan subsidies. This began from a 2009 investigation by the Department of Education inspector general during the George W. Bush administration. A whistleblower in the Education Department discovered this massive amount owed to…
Read MoreConsolidated Appropriations Act
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…
Read MoreProtecting your home through the Cares Act
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…
Read MoreThe talk of New Bankruptcy Provisions
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…
Read MorePG&E Struggles to Remain Out of Bankruptcy Amid Victim Claims
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…
Read MoreIs the Coal Industry Slipping into Obsoletion?
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…
Read MoreDitech bankruptcy could leave homeowners in foreclosure
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…
Read MoreChicago city officials corrupt impounding of cars from bankruptcy filers
The 7th US Circuit Court of Appeals ruled against Chicago city official’s practice of keeping impounded cars from debtors after they’ve filed for bankruptcy. A report from ProPublica in Illinois helped discover that thousands of debtors, mostly black and low-income, were forced into a Chapter 13 bankruptcy filing. Most of the debt the judges discovered,…
Read MoreJudges Considering Student Loan Bankruptcy
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…
Read MoreDo Medical Bills Correlate with Bankruptcy Filings?
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…
Read MoreNew Jersey Higher Education Student Assistance Authority ruled for a partial discharge
Last week, Hon. John Sherwood ruled a partial discharge for debtor Sarah Hunter against NJ HESSA (New Jersey Higher Education Student Assistance Authority). NJ HESSA says they are a “state agency” on their website but they are not run by the state of New Jersey. The loan company is privately owned, receiving their $1.9 billion…
Read MoreToys R Us – Bankruptcy on the horizon?
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…
Read MorePresident Trump on Mortgages
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.…
Read MoreSupreme Court and Bankruptcy News
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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