Phoenix Bankruptcy Law News

December 2011 Archives

Danny's Family Cos., Danny Hendon Emerge from Ch. 11 Bankruptcy

The owners of Danny's Family Cos. will get to start the New Year with a court-approved plan to keep the business financially solvent. The company, which owns popular Valley chain Danny's Family Car Wash, emerged from Chapter 11 bankruptcy protection, reports the Phoenix Business Journal.

Filing for Chapter 11 bankruptcy allows businesses with heavy debt burdens to restructure their business and renegotiate with creditors in order to become profitable again. The reorganization plan must be voted on by creditors and approved by a U.S. Bankruptcy court.

Top 5 Financial New Year's Resolutions for 2012

Another year, another set of mistakes made and lessons learned concerning your finances. This year was a tough one financially for Phoenix residents, but the start of the New Year always promises a fresh start for your financial health.

Here are our top 5 suggestions for financial New Year's resolutions to get you back on track:

Tackling the Fine Print: The Key to Hassle-Free Online Shopping

Iconic folk singer Pete Seeger is reputed to have once said: “Education is when you read the fine print; experience is what you get when you don’t.”

As attorneys, we are programmed to read the fine print. If the print’s that tiny, it usually means it contains important information, and it will come back to haunt us if we ignore it.

However, we’re not surprised to find that a lot of online shoppers prefer to skip the fine print. A new FindLaw survey revealed that more than half of the people surveyed pay little or no attention to legal agreements when shopping online.

Holiday Sales Expected to Reach Record, But Watch Out For Debt

Holiday shoppers are expected to ring up record sales numbers this season based on a strong Black Friday weekend and strong sales reports in October and November, reports the Phoenix Business Journal.

The National Retail Federation expects retail sales to rise 3.8 percent in November and December from last year, which translates roughly into $469.1 billion of spending, according to The Journal. It had previously predicted retail sales to rise only 2.8 percent.

Although retailers are reported to be cautiously optimistic, they also aren’t counting their chickens before they hatch.

False Scottie Pippen Bankruptcy Reports: ASU Blog Liable?

Don’t mess with the financial reputation of an NBA star. At least, not unless you can back it up.

Scottie Pippen, the Robin to Michael Jordan’s Batman, wants you to know that he’s not in danger of filing for bankruptcy, and he’ll sue anyone who says otherwise.

Pippen is reportedly suing several online media outlets, including an Arizona State University blog, because they falsely reported he was broke, reports ABC15 News.

Virginia RoomStore NOT Arizona RoomStore Filing for Bankruptcy

With stores closing left and right due to financial difficulties, it can be hard to keep track of which ones are still standing and which ones have bit the dust. This becomes even harder when one financially healthy business shares the same name with a financially struggling one.

Luckily for fans of volume furniture stores, it was Virginia's The RoomStore Inc. that filed for Chapter 11 bankruptcy protection and not Arizona's The RoomStore, reports the Phoenix Business Journal.

Arizona's version, which is locally owned and locally operated, has 10 stores in the Phoenix area. It is particularly well-known to Phoenicians for its commercials - whether it be its catchy jingle or guest appearances by local sports stars like Kevin Kolb, according to the Journal.

Specter of Bankruptcy Spooks U.S. Postal Service into Cutting Service

In nearly 220 years of service, the United States Postal Service has delivered mail despite snow, rain, heat, or gloom of night.

The gloom of bankruptcy, however, is a different story. The agency announced Monday that it will close 252 mail processing centers and pretty much eliminate next-day delivery in response to budget difficulties, reports the Associated Press.

All in all, the agency hopes to reduce at least $3 billion in order to avert the possibility of bankruptcy. This month alone, the post office faces imminent default on a $5.5 billion annual payment to the Treasury for retiree health benefits, according to the AP.

Next year, it is predicted to lose $14.1 billion.

Publisher Lee Enterprises Files for Chapter 11 Bankruptcy Protection

The writing has been on the wall for months. Facing $1 billion in debt, publisher Lee Enterprises has finally succumbed to the possibility of not being able to pay off its loans and will file for Chapter 11 bankruptcy protection, reports the TucsonSentinel.com.

Lee Enterprises, the parent company of dozens of newspapers across the country including Arizona’s own Daily Star, has been facing a slow demise since 2009. Although it had convinced creditors to extend the due date on $864 million in loans, it still needed to refinance $175 million more.

Arizona Women Still Earn Less Than Men, But Gap is Decreasing

Despite (or perhaps because of) the women’s liberation movement, women are still earning less than men although the gap is decreasing. Arizona women, especially, have narrowed the disparity compared to the national average, reports the Phoenix Business Journal.

On average, Arizona women earned 87 percent of what men made on a weekly basis in 2010, increasing 11 percent from 2009. That equates to $667 per week for women compared to $767 per week for men, according to statistics recently released by the U.S. Bureau of Labor Statistics.

Freddie Mac and Fannie Mae Suspend Evictions for the Holidays

The holiday season always seems to bring out feelings of generosity and compassion in people, and it looks like the same can even be said for mortgage lending giants.

Fannie Mae and Freddie Mac announced on Thursday that they would suspend evictions of families from foreclosed properties during the holidays, reports the Phoenix Business Journal.

“The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure,” said Fannie Mae Executive Vice President Terry Edwards. “No family should have to give up their home during this holiday season.”

Youngtown May Shut Down Police Force Due to Financial Struggles

The cash-strapped city of Youngtown announced they may have to disband their 50-year-old police department due to financial woes, reports The Arizona Republic.

Youngtown, a small city in Maricopa County and the nation’s oldest retirement community, has been beleaguered by the current economic crisis and additional costs handed down by the state legislature. Town leaders have been considering several options to deal with the town’s financial crisis, including merging with nearby cities, instituting its first property tax in 51 years, and shutting down the police force.

Since residents have vehemently opposed establishing a property tax to support the police although they’d like to keep the department, officials say they had no choice but to recommend disbanding the seven-member force at a council meeting on Wednesday, according to The Republic.