Phoenix Bankruptcy Law News

September 2011 Archives

Arizona Economy Slams Young Adults, the 'Lost Generation'

They’ve been called the Millennials, Generation Y and the Echo Boomers. But given recently-released data from the 2010 census, you may as well call the 20 and 30-somethings growing up in today’s Arizona economy the lost generation, reports the Associated Press.

Census data reveals that 1 in 5 young adults are at risk of living in poverty and are suffering from the highest rate of unemployment - 55.3 percent - since World War II. An option 5.9 million 25 to 34-year-olds are taking to get away from the impact of the economy? Moving back in with their parents.

How Solyndra Bankruptcy Could Affect Arizona Energy Projects

The Solyndra bankruptcy debacle may be soon hitting close to home, reports the East Valley Tribune. The solar-energy firm's collapse has placed two power line projects in Arizona in jeopardy, which will have significant effects on Arizona solar companies.

A bill proposed in the U.S. House of Representatives would prevent the Western Area Power Administration (WAPA) from borrowing from $3.25 billion provided by the American Recover and Reinvestment Act. This prohibition could, in turn, make two major Arizona power projects - the Centennial West Clean Line and Sonoran-Mojave Renewable Transmission - ineligible for millions of dollars in loans. Representatives from the Clean Line project have stated that it could create thousands of jobs in Arizona alone, including 5,000 sorely-needed construction jobs, the Tribune reported.

MLB Cites Phoenix Coyotes Bankruptcy to Force Sale of Dodgers

Major League Baseball is taking on Frank McCourt and the Los Angeles Dodgers in a bid to force the sale of the team when it emerges from Chapter 11 bankruptcy protection, reports the Los Angeles Times.

Under Chapter 11 bankruptcy protection, a company is allowed to reorganize under a court-approved repayment plan in order to become profitable again. McCourt has stated that the bankruptcy filing was made "to protect the franchise financially and provide a path what will enable the Club to consummate a media transaction and capitalize the team." McCourt had proposed auctioning off the Dodgers' media rights in order to pay off its debts, but MLB filed to block the sale and terminate McCourt's ownership of the team last Friday.

Census Bureau Statistics: Phx Area Job Loss Rate Third Highest

The Valley topped another list that big cities don’t want to be a part of. Recently-released Census Bureau statistics show that the Phoenix area suffered the third highest job loss rate among the nation’s 50 largest metropolitan areas from 2008 to 2010, reports The Arizona Republic.

The percentage of working-age Phoenix area residents holding jobs dropped 6.8 percent in the past two years. Only Charlotte, N.C. and Las Vegas, NV had worse numbers. Census Bureau statistics averaged jobless rates across the Valley, however, with percentages ranging from a 19 percent drop in Peoria to a 7 percent drop in Gilbert.

Betting the House: Reality TV Show Spotlights Phoenix Foreclosures

Reality television isn't just for catty housewives, desperate bachelors/bachelorettes, and D-list celebrities anymore. Discovery Channel is planning to air a reality TV show that will spotlight the competitive, heart-racing thrill of bidding on Phoenix foreclosures, reports The Arizona Republic.

"Betting the House" will focus on three veteran bidders at auctions for Phoenix foreclosures: Doug Hopkins of Posted Properties, John Ray of Bid AZ Foreclosures and Lou Amoroso of Easy Investments. The three agents identify foreclosed properties for their clients and go through an intense bidding process to get their clients the lowest-priced homes.

Youngtown in Danger of Municipal Bankruptcy?

Youngtown, a small city in Maricopa County and the nation's oldest retirement community, is in danger of municipal bankruptcy if it doesn't take drastic action, reports Fox 10 News.

Some of the drastic options town leaders are considering are merging with nearby cities, shutting down its police force, or instituting its first property tax in 51 years.

The latter option has not been sitting well with the town's large retiree population, many of whom are already struggling to pay the bills.

Census Bureau Statistics: Arizona 6th Poorest State in Nation

In a nation struggling with economic troubles, Arizona's residents are among those struggling the hardest, according to Census Bureau statistics.

Arizona is reportedly the sixth poorest state in the nation, with 1 out of 5 Arizonans living in poverty and 1 in 4 Arizona children dealing with hunger, reports azfamily.com. The Census Bureau statistic translates into 1.2 million people living in poverty in Arizona.

Only the residents of Mississippi, Louisiana, the District of Columbia, Georgia and New Mexico are feeling it worse. New Hampshire, on the other hand, was ranked as the least impoverished state.

Harry & David Bankruptcy: Company Emerges from Chapter 11

Business for iconic gourmet gifts and food purveyor Harry & David Holdings Inc. may be as sweet as its fruit baskets once again. The company announced Wednesday that it has successfully emerged from its Chapter 11 bankruptcy restructuring, reports the Portland Business Journal.

The 101-year-old, Oregon-based specialty goods store had filed for Chapter 11 bankruptcy after company sales and profits tanked due to the recession. Before filing in March, Harry & David had already closed all of its locations in Arizona, including its stores at the Chandler Fashion Center and the Scottsdale Fashion Square Mall. One recent CEO, Steven Heyer, stated that "there are few brands with this kind of brand power that have underperformed to this degree."

Manpower Survey: Phoenix Hiring on the Rise

Phoenix workers, whether unemployed or struggling with the fear of being laid off, may see a reprieve in the fourth quarter of 2011. A recent Manpower Employment Outlook Survey predicts that Phoenix hiring will be healthy and a majority of employers expect to maintain their current workforce levels, reports the Phoenix Business Journal.

The Manpower survey measured the intentions of 18,000 employers nationwide to grow or cut their workforce. Notably, Phoenix’s employment outlook was the strongest in the state and ranked fifth among the nation’s top 100 metro areas. The survey derived its net employment outlook figures by taking the percentages of employers anticipating an increase and decrease in hiring.

Four Receive Federal Indictment in Tucson Mortgage Fraud Case

Four Tucson suspects have received a federal indictment from a grand jury for their involvement in a mortgage fraud case, reports the Associated Press.

Two Tucson developers, an escrow officer, and a real estate agent are accused of fraudulently obtaining loans for 19 properties in Pima County in 2006 and 2007. The properties ultimately went into foreclosure.

The four real estate-related defendants are developers William Michael Naponelli and Walter Scott Fruit, escrow officer Sandra Jackson and real estate agent Brian Atwood. The defendants allegedly scammed lenders out of approximately $5.8 million, according to federal prosecutors.

AZ Homeowners Beware of Fake Mortgage Lawsuits

As if the current housing crisis hasn't been enough of a traumatic experience for struggling Arizona homeowners, scam artists have been targeting them with the offer of wiping out their loans through fake mortgage lawsuits, reports AB15 News.

Arizona Attorney General Tom Horne issued a warning regarding the fake mortgage lawsuits which promise "complete forgiveness" of home loans to Arizona homeowners facing foreclosure if they join a class-action lawsuit. However, they are first asked to pay fees related to a forensic audit of their loan documents to check their eligibility for the class-action suit.

Chapter 11 Bankruptcy Filing for Eating-Disorder Clinic Mirasol

The clients of Tucson-based eating-disorder clinic Mirasol Inc. are anxiously awaiting their refunds after the treatment facility announced it was undergoing a Chapter 11 bankruptcy filing, reports the Arizona Daily Star.

The clinic filed for Chapter 11 bankruptcy protection in early August due to millions of dollars of debt. It reportedly owes several of its clients, with some claims exceeding $10,000. The clients had paid up-front for a specific length of treatment but had been released earlier than expected and promised a refund.

Increase in Child Abuse Reports Linked to Phoenix Economy?

Typically, it's the adults that feel the brunt of a down economy. However, some experts say that it's the Valley's children that are feeling the literal backlash by the depressed Phoenix economy in looking at the increased amount of child abuse reports in the area, azfamily.com stated.

The brutal stories of child abuse allegations in the news, such as the deaths of ten-year-old Ame Deal and six-year-old Jacob Gibson, have caught the Valley's attention. Although both cases are still under investigation, recent studies from Child Protective Services (CPS) and law enforcement have reinforced nationwide reports showing a direct link between parents with financial struggles and child abuse, according to azfamily.com.

Back-to-School, Not Back-to-Broke: Top Ways to Avoid Student Debt

With the back-to-school season comes the thrill of back-to-school shopping. Add on tuition and housing costs, and students at Arizona colleges and universities may find the money quickly falling out of their pockets like last year's lessons fell out of their brains over the summer.

Never fear, for we have the top ways you can avoid student debt for the new school year. With all the money you can potentially save, you may find yourself with a nice little nest egg for next year's summer vacation trip!