Phoenix Bankruptcy Law News

July 2012 Archives

Doug Parker, CEO of Tempe-based US Airways, hasn’t been shy in expressing his intent to merge his company with bankrupt American Airlines. This week, however, American’s CEO Tom Horton came out and said that the merger was actually his idea and that it may no longer be on the horizon, The Associated Press reports.

In November, American’s parent company, AMR, filed for Chapter 11 bankruptcy. Ever since the filing, rumors of a possible merger with US Airways have been in the air. After Horton’s recent statements, however, the chances of a merger seem slim.

Are you considering filing for bankruptcy? Maybe your mortgage is underwater or you’ve racked up a frightening amount of credit card debt. While filing for Chapter 7 bankruptcy can help you alleviate your debt burden, it’s no walk in the park.

Before you take the leap, it’s important to know what you’re getting into. That’s why we’ve put together the FindLaw Guide to Chapter 7 Bankruptcy. The guide covers both the advantages and the consequences of filing for bankruptcy. And, best of all, it’s free. Below, we’ve outlined just a few of the areas covered in the guide.

These days, the deck is stacked against graduates. With the economic recovery stalled and job growth inching along, college grads have it worse than ever. On top of that, many graduates are forever tied to their student loan debt, since student loans are one type of debt that can’t be discharged in bankruptcy.

The White House wants to change that, at least in part. The Obama administration has urged Congress to make things easier for people saddled with student loan debt by modifying a 2005 law that prohibits private student loans from being discharged in bankruptcy, The Wall Street Journal reports. While the majority of student loans are federal, an increasing number of students now rely on private student loans to cover their expenses.

Cocopah Nurseries of Arizona, Inc., which grows palm and citrus trees, has filed for bankruptcy, Bloomberg reports.

The company reportedly took a hit when the demand for landscaping on construction projects dried up. Now, the company hopes to use bankruptcy protection to stay afloat while reorganizing its business.

Former pro baseball player and financial guru Lenny Dykstra seems to have a hard time staying on the right side of the law. He’s currently serving a three-year prison sentence for grand theft auto.

Now, the three-time Major League all-star outfielder is back in the headlines for charges stemming from his recent bankruptcy. On Friday, Dykstra pleaded guilty to felony counts of bankruptcy fraud, concealment of assets, and money laundering, CNN reports.

US Airways’ courtship of American Airlines continues. On Thursday, US Airways announced that it had purchased “a small amount of debt” of AMR, American Airway’s bankrupt parent company, USA Today reports.

Tempe-based US Airways has repeatedly expressed its desire for a merger with American Airlines. Its recent debt purchase makes the company one of AMR’s creditors, giving it a voice in AMR’s bankruptcy. AMR representatives have dismissed the purchase as a publicity stunt.

Kodak’s recent bankruptcy filing may not stop the company’s top executives from receiving bonuses this year, USA Today reports.

On Wednesday, Kodak filed a motion in U.S. Bankruptcy Court requesting approval for up to $17.6 million in bonuses for 15 executives. While bonuses may seem like an excess now that the company is going through a bankruptcy, Kodak insists that the bonuses are necessary to keep its top execs on board during the grueling reorganization process.

Last week, we noted that national bankruptcy filings were on the decline. Fortunately, the Phoenix area is no exception to the national trend.

In June, metro Phoenix bankruptcy filings fell another 27 percent, The Arizona Republic reports. Last month saw 1,770 bankruptcy filings in the Phoenix area, bringing the total for the first half of the year to 10,867.

Good news for the economy. Bad news for bankruptcy lawyers: The number of bankruptcies is declining and could reach pre-recession levels by the end of the year, Reuters reports.

The number of bankruptcies fell 14 percent in the first half of 2012. If it continues to fall, 2012 could end with the lowest number of bankruptcies since before the 2008 financial crisis, experts say.

Being saddled with debt is already stressful enough without having to deal with an aggressive debt collector. Fortunately, the Fair Debt Collection Practices Act prohibits debt collectors from harassing debtors in many different circumstances.

Under the FDCPA, debt collectors are prohibited from calling at unreasonable hours, repeatedly and continuously calling, threatening legal action, using abusive language, showing up at the debtor’s workplace, or deceiving the debtor. Below, we’ve included a few ways to combat aggressive debt collectors, should you find yourself the victim of illegal debt collection practices.

Developer Rick Burton, co-founder of Rightpath Limited Development Group, has filed a massive personal bankruptcy, The Arizona Republic reports.

Burton and his business partners helped develop a corporate luxury jet hub and a resort complex in Glendale. After making a few business blunders, however, Burton is now reportedly in $310 million of debt. He filed for Chapter 7 bankruptcy in Las Vegas.