On behalf of Mahaffey & Associates, LLC posted in Chapter 7 Bankruptcy on Thursday, May 17, 2012
The unknown can be scary to people, and many people make assumptions about bankruptcy that simply are not true. Here are a just a few of the most common bankruptcy myths.
• "Filing for bankruptcy will ruin my credit score forever." This isn't true. Many consumers are often surprised when they get offers for secure credit cards (which require a bank deposit) within a month or so after the discharge of debt. Within a year after that, it's often possible to acquire mainstream credit cards. Making timely and regular payments will help you rebuild your credit.
On behalf of Mahaffey & Associates, LLC posted in Business & Commercial Bankruptcy on Thursday, May 10, 2012
The president of the Fremont Hospitality Group, which owns the Clairon Inn on Ohio 53 near Fremont, received a notice of foreclosure action against the hotel recently. However, those proceedings were halted when the group filed for bankruptcy protection with the U.S. Bankruptcy Court in the Northern District of Ohio.
The hotel has been having financial problems since the death of its original owner in a plane crash in 2009. It has a long list of creditors and reportedly owes approximately $324,000 in back taxes, interest and assessments. The value of the hotel's land and improvements was recently assessed at around $2 million. The last property tax payment received by the county treasurer, however, was apparently back in 2009. She says no one at the hotel ever initiated a payment plan after its financial difficulties came to light.
On behalf of Mahaffey & Associates, LLC posted in Chapter 7 Bankruptcy on Friday, May 4, 2012
Her family situation may be unique, but her financial burdens are not. Nadya Suleman, dubbed the "octomom" by the media after the birth of her octuplets, filed for chapter 7 bankruptcy earlier this week after amassing an enormous debt.
Suleman was having financial problems even before the birth of the octuplets, and her debt is magnified now. She has a total of 14 children, and supports some of them with food stamps and Social Security disability payments. She's unemployed and sometimes relies on photo spreads in tabloids for some extra income.
On behalf of Mahaffey & Associates, LLC posted in Business & Commercial Bankruptcy on Wednesday, April 25, 2012
A real estate developer whose projects included approximately five million square feet of residential and commercial property in Las Vegas since 2006 has recently filed for Chapter 7 business bankruptcy protection. Just as in Ohio, the real estate bubble and the foreclosure crisis have hit Las Vegas hard, and real estate developers have felt the pinch in their profits.
This particular developer had a number of projects in various stages of completion, including both residential and commercial land development deals as well as office and retail space. Unfortunately, the projects were either never completed or failed to find the necessary buyers and tenants. This left the developer with millions of dollars in unpaid debts with no corresponding income. At this point, it is estimated that his liabilities in fact exceed $100 million, while he only has approximately $50,000 in assets.
On behalf of Mahaffey & Associates, LLC posted in Chapter 7 Bankruptcy on Friday, April 20, 2012
Ohio homeowners who purchased property before the real estate market crash and downturn in the economy may fault themselves for not having seen the troubles coming. However, even knowledgeable experts have become victims as well. Many real estate professionals and real estate investors purchased homes with hopes of big profits, and now are unable to sell these underwater homes.
One such man is a real estate agent who filed for Chapter 7 bankruptcy. He had been the top-selling agent for his brokerage firm back before the housing crash in 2004. Around that time, he, like many other real estate investors, saw the potential for developing land.
On behalf of Mahaffey & Associates, LLC posted in Chapter 7 Bankruptcy on Thursday, April 12, 2012
According to an article in Sports Illustrated, the majority of professional football and basketball players file for bankruptcy within two years of retiring from their sport. This information may seem particularly surprising considering that these athletes make millions during their professional careers.
So how can we explain this phenomenon? Does a lack of financial planning and an inability to earn a living post-professional sports play some role in these athletes inability to manage their finances once they stop playing? Perhaps. But what about players who manage to bank on their celebrity status, and earn a living by other means?
On behalf of Mahaffey & Associates, LLC posted in Chapter 7 Bankruptcy on Sunday, April 8, 2012
Are debt collectors harassing you about credit card bills you can't afford to pay? You may want to check your own records to verify their claims and/or ask the collectors to provide documentation proving that you actually owe the debt. You may also want to consider filing a Chapter 7 bankruptcy petition to eliminate unsecured credit card debts completely and stop creditor harassment.
According to American Banker, big banks have apparently been using the same kind of highly questionable and illegal tactics to collect credit card debts that they also used on many Ohio homeowners during the foreclosure crisis. While the five largest banks recently agreed to a $26 billion settlement for their shameful foreclosure practices, banks have yet to be held similarly accountable for their abuses with respect to credit card collections.
On behalf of Mahaffey & Associates, LLC posted in Foreclosure on Thursday, March 29, 2012
In a sign of the improving economy, Ohio foreclosures dropped for the second straight year in 2011, after 14 years of increases. Over 71,500 foreclosures were filed in the state last year, a 16.3 percent drop from the year before.
The drop can be attributed to a few factors, economists say. One is simply that the economy really is improving. Jobs have been added, and more Ohioans are able to make their mortgage payments.
On behalf of Mahaffey & Associates, LLC posted in Chapter 7 Bankruptcy on Thursday, March 22, 2012
A company that specializes in gene therapies for medical disorders filed for chapter 7 bankruptcy protection under the liquidation provision of the U.S. Bankruptcy Code. Neurologix made the move last week, which will allow the company to be protected from creditors as its assets are liquidated.
According to Business Week, the company listed debt of $12.9 million as of early this month, while assets were worth $1.2 million. It has had a rather tumultuous few months. The chief executive officer and the president both resigned late last year, and the chief financial officer reportedly resigned earlier this year. At that point the company hired another firm, Global Resource Partners Inc., to provide financial advice and consulting.
On behalf of Mahaffey & Associates, LLC posted in Business & Commercial Bankruptcy on Wednesday, March 14, 2012
Over the years it may have been common to hear someone say, "I'm going to the A&P." But the grocery chain has struggled with weak sales and big debts in recent years. The company that operates the chain, the Great Atlantic & Pacific Tea Company Inc., entered bankruptcy protection in 2010 and is just now emerging from it.
The company, which was founded in 1859 and operated one of the nation's first grocery store chains, still has more than 300 grocery stores operating in six different states under varying names, including A&P, Superfresh and the Food Emporium. It has about 34,000 employees.
