Phoenix Bankruptcy Law News

April 2011 Archives

The History of Donald Trump's Bankruptcy Filings

Billionaire Donald Trump has been in the media's spotlight ever since he expressed interest in becoming a candidate for the Republican Party in the 2012 presidential election. The CEO constantly rests on the laurels of his business empire, but did you know that some of Trump's companies have actually declared bankruptcy?

ABC News reports that Trump businesses have actually gone through Chapter 11 bankruptcy four times - in 1991, 1992, 2004 and most recently in 2009. So like many other companies, Trump's businesses have had their ups and downs over the past couple decades.

Which Employers Added Jobs in 2010?

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Almost everybody can agree that the year 2010 was a tough year for businesses. Many companies suffered financially and as a result had to lay off some of their employees or even had to file for bankruptcy. Yet The Arizona Republic reports that some big employers have actually added to their staffs rather than reduced them over the past 12 months.

Companies in the health care sector have perhaps seen the most job gains in the Phoenix metro area. The Mayo Clinic and Catholic Healthcare West are two medical companies that have added employees and who are looking for more workers this year. Financial institutions, such as banks, have also reported a growth in the number of their employees. Some banks that have seen job gains include Bank of America, JPMorgan Chase, American Express, Vanguard Group and Discover Financial Services.

Maricopa County Has Sixth Highest Total Personal Income

It looks like individual residents in the Phoenix region are raking in a lot of cash -- or at least together they're making more money than people in other parts of the country. Among the 100 largest counties in the country, Maricopa County residents actually have the sixth-highest total personal income.

The Phoenix Business Journal reports that the total personal income in the county is at $142.01 billion, based on newly released figures from the U.S. Bureau of Economic Analysis. The total personal income index is based on the income received by all people from all sources in a given year, including income earned from employment wages, Social Security, and welfare payments.

Average Credit Score in Arizona is 666

During tough economic times across the Grand Canyon state, many consumers are continuing to struggle with unemployment, debt, and foreclosure. However, Arizona residents have somehow managed to keep their credit scores just above the national average score of 665.

The Phoenix Business Journal reports that the average credit score for the Arizona consumer was at the magic number of 666 during the first quarter of 2011. The overall improvement among credit scores was due to many consumers lowering their credit card debt during this time.

Thousands in Arizona Could Lose Unemployment Benefits

Many people across the state of Arizona are struggling to find work and the state’s jobless citizens are likely to be in even more financial trouble than they already are after this month. This is because the state legislature might not be extending unemployment benefits.

The Arizona Republic reports that the Democratic lawmakers are pushing to pass legislation that would extend unemployment benefits to a full 99 weeks. Yet Republican leaders seem to be unhappy with this plan because they believe cutting off unemployment benefits will encourage unemployed Arizonians to go back to work at quicker rates.

Arizona's Statute of Limitations on Credit Card Debt Collection

The statute of limitations regarding the collection of credit card debt in Arizona has been somewhat of a gray area over the past several years, as there has been a great deal of ambiguity regarding when the statute of limitations should apply. However, state lawmakers are now advancing legislation to clarify the statute of limitations for collection agencies.

The Arizona Republic reports that House Bill 2412 specifies that all credit-card debts remain collectible for six years. When debts become more than six-years-old, collectors can no longer pursue people who do not pay off the debt. The law can be seen as both beneficial to consumers and debt collectors because there is now better clarification of what the rights and responsibilities are for each side.

More Moms Financially Supporting Adult Children

During tough economic times, many Phoenix parents may have unexpected expenses that they’re dealing with. One of these expenses can be the financial support of adult children. After all, mothers and fathers don’t always plan to be paying for their child’s expenses after their child reaches the age of adulthood.

While there is no legal obligation to support a child beyond the age of 18, most parents will do whatever is necessary to help their children into adulthood. According to Reuters, more than half of mothers of the baby boom generation are supporting their adult children financially and 60 percent of these mothers are the person that their offspring go to when they encounter problems. This information is based on an online survey conducted by The Kitchens Group, a public opinion research firm.

Doubletree Hotel in Tucson Hit With Foreclosure

The Doubletree Hotel Tucson can now be added to the long list of Arizona hotels that are facing foreclosure proceedings. While an auction of the property in Reid Park has been scheduled for July 7, hotel operations are still set to continue as they normally do.

Doubletree remains a popular venue for community banquets and events. Let's just hope that foreclosure proceedings don't have a negative effect on business. The Arizona Daily Star reports that documents that were filed with the Pima County Recorder's Office show that the Doubletree hotel is delinquent on about $31 million in loans.

Phoenix Gas Prices Continue to Climb

High gas prices might just drive Arizona consumers into debt if the price of oil continues to soar up. According to Associated Press, gas prices reached a 30-month high last week in Arizona with gas averaging $3.59 a gallon at the pumps for the unleaded regular gasoline.

Last week, national average gas prices were at $3.72 per gallon, which was an increase of nearly 12 cents a gallon from the week before. Yet even with below average gas prices in the state Arizona, state residents are taking on new efforts to save money and reduce their number of trips to the gas station.

Phoenix Sees Decline in Bankruptcy Filings

There are currently some promising signs that the Phoenix economy is improving. Employment hirings are up, more consumers are staying on top of their debts while increasing their borrowing, and the number of bankruptcy filings in the area has decreased.

The Arizona Republic reports that there were a total of 2,813 bankruptcy filings in the the Phoenix metro area. This is an increase from the 1,819 bankruptcy filings in February, but March is typically a busier month for bankruptcy petitioners. Last month's bankruptcy filings were significantly lower than the 3,063 filings in March 2010.

Blockbuster Bankruptcy: Dish Network Wins Bankruptcy Auction

The satellite TV provider Dish Network made the highest bid at Blockbuster's bankruptcy auction this week, offering more than $320.6 million for the company. Reuters reported that the bid was higher than the bids being offered by liquidators at the auction, who would have shut down Blockbuster and sold off the company's assets.

So, it looks like Blockbuster has officially been saved from liquidation. Dish Network's money will now go toward paying off the Blockbuster creditors, which include activist investor Carl Icahn, movie studios and other bondholders. As the auction winner, the satellite TV provider is now in charge of running the video chain with 1,700 store locations. And with new leadership, it's likely that operational changes will take place within the company.

Mesa Man Arrested After Debt Collection Scam

Joshua Thomas Pryor, who used to work for a Utah debt collection company, has been accused of fraudulently offering several victims the elimination of credit card debt for only 10 percent of what they owed. Pryor is also accused of selling debts to collectors, which he said would allow them to make large returns. Yet Pryor allegedly sold victims the same bad debt that he had already given to others and only purchased the preview copies that contained legal title to the debt.

It looks like Pryor, who resides in Mesa, won’t necessarily be able to get away with this scam. The Salt Lake Tribune reported that the suspect has been charged with 12 felonies for allegedly taking at least $200,000 from victims after falsely claiming that he owned a wealthy debt collection agency.

Why Phoenix is Ranked as the Most Miserable City in America

What's wrong with Phoenix? The city has good weather, many popular tourist attractions and is home to several professional sports franchises. Yet Dow Jones and the Wall Street Journal have put together a misery index of the largest metro areas in the U.S. and have placed Phoenix at the top of their list.

The Phoenix Business Journal reported that the misery index is based on several economic factors that include unemployment rates, gas prices, and home values. These factors determine how unhappy people are on the misery index. Phoenix gas prices are reportedly at the highest that they've been at in 29 months, with gas now averaging to be about $3.53 per gallon. Arizona's unemployment rate is at an unhappy 9.6 percent, far above the national average of 8.8 percent.