Phoenix Bankruptcy Law News

August 2011 Archives

Median Phoenix Home Prices May Drop Below $100,000

The median for Phoenix home prices are one of the lowest in the country and are in danger of dropping below $100,000, reports the Phoenix Business Journal.

The potential for the drop was garnered from data taken from the S&P/Case-Shiller Home Price Index’s report. The only cities with median home prices below $100,00 are Detroit ($65,420) and Las Vegas ($95,670).

Can't Bite the Bankruptcy Bullet? Top 3 Alternatives to Bankruptcy

If you are struggling under a mountain of debt and don't see a way to climb out of it, bankruptcy may have crossed your mind. In fact, 3,589 Phoenicians and companies in April decided to file for bankruptcy. But the decision to declare bankruptcy is a big one, potentially affecting your personal life, your property and your credit score.

If you aren't ready to bite the bullet of bankruptcy yet, here are our top 3 alternatives to bankruptcy:

Arizona Borders Store Location Leases Sold at Liquidation Auction

Have a couple hundred thousand dollars lying around and looking for some property to lease? You could be the proud holder of a lease for a Borders store location by the end of the week.

Borders Group, the bankrupt national bookseller, is auctioning off leases for five Borders store locations in New York on Friday, reports the Phoenix Business Journal.

The locations range from a 26,878 square-foot plot in Tucson’s Park Place to a 1,429 square-foot location in the Phoenix Sky Harbor International Airport. Prices per square feet vary from $10.91 to $153.95, depending on the location. Other leases are located in Glendale’s Arrowhead Marketplace, Mesa’s Superstition Springs Center, and Phoenix’s Fountain Square. The majority of the leases will expire in the next decade.

Child Well-Being Reflects Arizona Economy; Worse than Most States

Looking at the casualties of an economic recession, children, a nation's most innocent population, often get hit the hardest and the longest. It is no different for children suffering through the financial crisis' impact on the Arizona economy. A national study on child well-being found that the state's children are faring worse than most, reports The Arizona Republic.

Arizona placed 37th among states, typically ranking near the bottom in most of the 10 key indicators used by the study, according to the Annie E. Casey Foundation's annual Kids Count Data Book. Indicators included child poverty, children impacted by foreclosure, and the percentage of those without health insurance.

Food Research and Action Center: Phoenix Food Hardships Among Worst

Do you ever find it hard to buy food or necessities? Phoenix was named one of the worst metro areas for food hardships in 2010, reports the Phoenix Business Journal.

When asked if finances make it hard to buy food and groceries, 1 in 4 Phoenix-area households said yes, the Association of Arizona Food Banks and the Food Research and Action Center study reports.

Phoenix ranks No. 20 among metro U.S. areas with the worst food hardships.

Is a Phoenix Coyotes Sale to Canadians Looming?

Rumors have leaked that a Canadian-led ownership group is formulating a bid for the Phoenix Coyotes, reports the Phoenix Business Journal. The announcement came on the heels of the release of a Journal study stating that insufficient Phoenix income makes it one of the most overextended sports markets in the country.

The Journal reports that a Phoenix Coyotes source and a local sports radio show have confirmed that a serious bid is being put together. A minority owner in another undisclosed NHL franchise is also reportedly involved.

The Coyotes have been looking for a new owner since the NHL bought the team for $140 million after former owner Jerry Moyes filed for Chapter 11 bankruptcy in 2009 on behalf of the Coyotes.

Las Vegas Hooters Casino Goes Bust: Files Chapter 11 Bankruptcy

Having the “largest group of Hooters Girls in any one place on the planet” wasn’t enough to keep the Las Vegas Hooters Casino Hotel from a Chapter 11 bankruptcy filing last Monday, but chicken wing and cleavage lovers will still be able to find the busty waitresses at local joints, reports The Wall Street Journal.

“This action in no way affects the operation of the more than 430 Hooters Restaurants in 44 states and 27 countries,” hotel and casino owner 155 East Tropicana LLC released in a statement on Monday.

The restaurant chain, famous for its orange-and-white clad servers and chicken wings, currently has seven locations operating in Arizona, including three in Phoenix alone.

Chapter 11 Bankruptcy Protection for Bill Johnson's Big Apple Restaurant

Has Bill Johnson’s Big Apple restaurant bit the big one by filing for Chapter 11 bankruptcy protection?

Not to worry, Phoenix barbecue lovers, the move will allow “Arizona’s Original Steakhouse” to reorganize amidst the economic downturn, and no layoffs or closures to any of its five restaurants are expected, according to CEO Sherry Cameron.

“This allows us to restructure our debt in a market of declining sales and falling real estate values,” Cameron told the Phoenix Business Journal.

American Bankruptcy Institute: Consumer Bankruptcy Down Again

Consumer bankruptcy filings in the United States fell for the seventh month in a row, declining 18 percent in July compared to last year, according to the American Bankruptcy Institute.

However, the decline may not represent a sign that the economy is improving or that consumers are finally able to get a better grasp on their debt.

"The decline is further evidence that consumers are deleveraging, as if they were on strike, and are worried about their economic futures," ABI Executive Director Samuel Gerdano told Reuters.

Real Mex Restaurants Undergoes Financial Restructuring

Real Mex Restaurants Inc. - owners of the popular Chevys Fresh Mex restaurant chain and the largest full-service, casual dining Mexican restaurant company in the United States - has barely squeaked by from defaulting on one of its loans, foreshadowing the need for financial restructuring, reports The Wall Street Journal.

Real Mex, which has two Chevys restaurants in Phoenix and Mesa, has already missed a $9.1 million interest payment, which it eventually paid with the assistance of an affiliate of Sun Capital Partners, and reached an agreement with its lenders to amend the terms of its debt, including $130 million owed to Wells Fargo Bank, $40 million owed to General Electric Capital Corp., and approximately $25 million owed to Credit Suisse, with its lenders.

Chapter 11 Bankruptcy Filing for Danny Hendon of Car Wash Fame

As the funk band Rose Royce once preached, "you might not ever get rich" working at a car wash. Unfortunately for debt-ridden Daniel L. "Danny" Hendon of Danny's Family Car Wash, it may be even worse financially to own one.

The Phoenix Business Journal has reported another bankruptcy filing by Hendon; this time, however, it's personal.

The personal Danny Hendon Chapter 11 bankruptcy filing is similar to corporate Chapter 11 bankruptcy but is extremely rare. According to FindLaw, only 0.1 percent of consumer bankruptcies filed in 2009 were Chapter 11. The route is only available to individuals who still have substantial personal earning potential, but whose debts exceed the limits for Chapter 7 and Chapter 13 bankruptcy.

Phoenix Housing Market Spotlighted as Epitome of Market Crisis

Strolling down the streets of Phoenix, residents can see the writing on the wall - shuttered businesses, empty homes, and increased rental prices. It comes as no surprise, then, that the Phoenix housing market has been spotlighted as the epicenter of the housing market crisis, according to MarketWatch.com.

The housing market has reportedly eclipsed the crises of the ’80s and ’90s, according to experts; citing such depressing statistics as approximately two-thirds of residential mortgages underwater (200,000 of which are 50% larger than the property’s current market value), median home prices decreasing by 53% since 2006, and distressed properties accounting for 64% of sales.