Phoenix Bankruptcy Law News

January 2012 Archives

World Economic Forum: Gap Between Rich and Poor a Serious Issue

In a chalet in Davos, Switzerland, the world’s business and political leaders gathered for the World Economic Forum and reached a conclusion that many already knew: the widening financial inequality gap is a problem, reports the Associated Press.

Along with the unsurprising conclusion came the additional realizations that economic growth must include the poor, job creation is critical, and affordable food, housing, health care, and education need to be part of the solution, according to the Associated Press.

Glendale's Credit Worthiness Checked By Phoenix Coyotes' Debt

Glendale's financial health is still being affected by the Phoenix Coyotes recent bankruptcy filing.

While trying to keep the hockey franchise afloat, Glendale has dug itself into its own financial hole, eroding its credit worthiness, reports The Arizona Republic.

Moody's Investor Service recently downgraded the city's bond rating on $680 million of its debt by one notch. Its scale runs from a high of AAA to a low of C, and indicates the level of risk investors can expect to take on the bonds.

Number of Valley Foreclosures Ranked Among Highest in Nation

A new CNN Money study conducted by Realty Trac revealed what many Phoenix area residents already know: there were a lot of Valley foreclosures last year.

There were so many foreclosures, in fact, that five of the 100 Zip codes with the most foreclosures in the nation were in the Valley alone, reports CNN Money. Fifteen of the ZIP codes were in Arizona.

Better Business Bureau Releases Top Financial Scams of 2011

With the New Year comes new resolutions to recharge your financial health. Along with adopting new goals and habits to secure your financial future, it’s also a time to learn from the previous year’s financial mistakes.

Luckily, the Better Business Bureau has provided a list of the top 10 scams of 2011, which includes a few financial scams, according to ABC15 News. Learning from the mistakes of others will help ensure you don’t repeat those mistakes in 2012.

A few of the financial scams that made the list include:

Federal Bankruptcy Courts Report Decreased Filings in 2011

The number of bankruptcy petition filings was down eight percent last year for the first time since 2007, reports the United States Courts.

In the 2011 Year-End Report on the Federal Judiciary, filings of bankruptcy petitions declined to 1,467,221. It is reportedly the first reduction since 2007, which is when the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect. In 2010, during a spike in the financial crisis, bankruptcy petitions reportedly climbed 14 percent.

APA Survey: Money is Biggest Source of Stress for Americans

We all know stress isn't good for you, but try keeping it away in a down economy.

For 75 percent of the respondents in the American Psychological Association's 2011 Stress in America survey, money was a source of stress in their lives, reports financial education website Learnvest.com.

Work and the economy rounded out the top three sources of stress, but the survey's results show that money is far and away the biggest worry on our minds. The results aren't too surprising, however, since it's been that way for the past five years.

Western National Bank Fails, Will Reopen as Washington Federal

It seems that Phoenix consumers were not the only ones who were hurt by the failed real estate market.

Western National Bank was closed on Friday by regulators, and its demise was reportedly assisted by non-performing commercial real estate loans, reports the Phoenix Business Journal.

The Office of the Comptroller of the Currency closed the doors of Phoenix-based Western National Bank and turned the keys over to the Federal Deposit Insurance Corp. Seattle-based Washington Federal acquired the company and will open Western’s doors on Monday under its name.

'Jerry Maguire' Sports Agent, Leigh Steinberg, Files Bankruptcy

It looks like famed sports agent Leigh Steinberg has had a hard time showing creditors the money.

Steinberg, who inspired the title character in the movie “Jerry Maguire,” filed for Chapter 7 bankruptcy protection on Thursday, reports ABC News.

Steinberg, who has guided the multi-million dollar careers of such NFL stars as Troy Aikman, Steve Young and Ben Roethlisberger, has reportedly lost his own financial way thanks to his children’s health problems, an unauthorized business transaction by one of his employees, and a history with alcoholism, according to ABC.

Twinkies in Trouble? Hostess Prepares for Chapter 11 Filing

Hostess - the creator of the ubiquitous, yellow snack cake “the Twinkie” and childhood favorite “Wonder Bread” - is preparing to file for Chapter 11 bankruptcy protection, reports The Wall Street Journal.

The Texas company has been facing financial troubles due to high labor costs and rising prices for sugar, flour and other ingredients that you always wondered were in a Twinkie's yellow cake and white cream filling. In addition, sales have taken a slight hit thanks to more consumer focus on whole-grains and healthier foods.

Kodak Chapter 11 Bankruptcy About to Develop?

Bad news may be developing for Kodak, a name synonymous with the birth of photography. The Eastman Kodak Co. may be preparing to file for Chapter 11 bankruptcy protection if it cannot make some much-needed profit off of sales of some of its digital patents, reports The Wall Street Journal.

The 131-year-old company has hit a rough patch since its days as an industry titan and the headquarters of breakthrough photographic technology. Unable to find a viable replacement to its film business, Kodak has been unable to maintain the same level of financial stability to support its empire.

ABI: Bankruptcy Reform Law Made Process More Complicated, Costly

A new study released by the American Bankruptcy Institute claims the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) made the bankruptcy system even more complicated and costly than ever.

The bankruptcy reform law has affected both debtors and bankruptcy professionals, the study reported.

Breaking down the data to specific bankruptcy types, the cost of Chapter 7 cases with no assets went up 51 percent, and Chapter 7 cases with assets increased by 37 percent. The average cost of attorneys' fees for chapter 7 asset cases increased by 30 percent to $1,072.