Phoenix Bankruptcy Law News

May 2012 Archives

Jensen Farms, the company responsible for a 2011 listeria outbreak, filed for Chapter 11 bankruptcy on Friday, The Wall Street Journal reports.

Last year, Jensen Farms' contaminated cantaloupes caused an outbreak of listeria food posioning across the country. With 30 reported deaths, the listeriosis outbreak was the second deadliest outbreak of foodborne illness the country has seen. Arizona was among the 25 states that received shipments of the contaminated cantaloupes.

Bad news for Arizona homeowners: more than half of the $98 million settlement the state received from five of the nation’s biggest banks may not be going to homeowners.

Many states, including Arizona, accused the banks of committing mortgage fraud. The settlement was originally intended to help homeowners struggling with their mortgages. Now, however, state officials want to put $50 million of the settlement into Arizona’s general fund, allowing the state to use the money as it sees fit, reports.

Hostess’ impending bankruptcy is making many of its employees anxious, and for good reason.

According to the Phoenix Business Journal, 130 jobs would be cut in Arizona, should Hostess Brands Inc. be forced to close its operations in the state. This month, the company announced possible closures and job cuts in Arizona.

Phoenix-area bankruptcies fell 27 percent in April from the same month last year, The Arizona Republic reports. The decline continues a two-year trend.

According to the U.S. Bankruptcy Court in Phoenix, there were 1,999 bankruptcy filings last month. That’s a marked improvement from the 2,748 filings made in April 2011. Last month’s figures are also a 4 percent drop from the number of filings in March.

Last year, outstanding student loans exceeded $1 trillion, beating out the total amount of credit card debt in the country, USA Today reports.

With defaults on the rise, student loan debt is clearly a problem. But how can it be solved? Below, we’ve included five proposals that USA Today recently outlined to help put an end to the student loan crisis and give borrowers some relief.

On Thursday, the U.S. Postal Service announced that it will begin acting on its plan to close hundreds of processing centers around the country, The Washington Post reports.

The service is facing bankruptcy and has stated that it cannot wait for Congress to pass legislation to help rehabilitate it. According to officials, around 13,000 postal workers will be laid off as a result of the closures.

“Octomom” Nadya Suleman’s bankruptcy case has been thrown out, the Los Angeles Times reports.

Suleman filed for Chapter 7 bankruptcy protection on April 30, claiming to be in more than $1 million of debt. Her case was stopped dead in its tracks, however, when Suleman missed her deadlines.

Nearly everyone has some idea of what Chapter 7 bankruptcy protection entails. Yet, for whatever reason, bankruptcy protection is often shrouded in myth and rumor. In addition, the people who file for bankruptcy are often stigmatized as irresponsible deadbeats.

Below, we’ve broken down five of the most pervasive myths about bankruptcy, according to U.S. News & World Report.

On a recent episode of Dr. Phil, former NFL wide receiver Terrell Owens opened up to the good doctor about his impending bankruptcy, the Toronto Sun reports.

T.O. reportedly broke into tears as he described how he’d blown nearly the entire fortune he earned during his 14-year career in the NFL.

A homeowner in Houston, Texas has filed a suit claiming a debt collection agency found out that her house was on fire, showed up, and seized the her possessions as the fire blazed, Courthouse News Service reports.

According to the filings, a residential fire broke out at Mara Kafarela’s property, damaging the structure and its contents. Blackmon Mooring, a debt collection agency hired by one of Kafarela’s creditors, “somehow learned” of the fire and decided to strike while the iron was hot, according to Kafarela.

According to a recent study, anywhere from 200,000 to one million Americans are expected to be too broke to file for bankruptcy this year, reports.

The average cost of filing for Chapter 7 bankruptcy protection is over $1,500. While $300 of that is attributable to court filing fees, the remainder goes to the bankruptcy lawyers.

Millions of graduates are currently struggling to pay off their student loans debts. Since student loans cannot be discharged in bankruptcy, many graduates find themselves sinking further and further into student loan debt without any way out.

So what happens when you default on your student loan? Below, we’ve included some of the means the Department of Education has at its disposable to collect on defaulted student loans.

“Octomom” Nadya Suleman filed for bankruptcy on Monday in California, The Associated Press reports. According to the filings, she is $1 million in debt.

The mother of 14 said that she wants a fresh start and believes that bankruptcy protection is what’s best for her children. “I have had to make some very difficult decisions this year, and filing Chapter 7 was one of them,” Suleman said.