September 2012 Archives

Credit card debt is one of the main reasons people file for bankruptcy. With many struggling during the economic downturn, more and more people are relying on credit cards to get by. Fortunately, credit card debt is one type of debt that is usually discharged in bankruptcy, meaning it's erased once your bankruptcy is complete.

However, there are downsides to filing for bankruptcy to get rid of your credit card debt. Below, we've included a few things to keep in mind if you're considering filing for bankruptcy to wipe out your credit card debt.

In May, Warren Sapp joined the countless ex-NFL players who have filed for bankruptcy.

Sapp, however, tackled his debt like a champ and has emerged from bankruptcy. On Monday, a Florida bankruptcy judge gave Sapp his debt discharge, meaning most of the former defensive tackle's debts are now erased, The Inquistr reports.

Less than two weeks after receiving approval for an unprecedented quick sale timeline, James Cameron's Digital Domain Media Group has found two buyers.

The company behind "hologram Tupac" and the special effects in "Titanic" will be sold to Reliance MediaWorks and China-based Galloping Horse America for $30.2 million, The Wall Street Journal reports. Although the speedy sale was a success, Judge Brendan Shannon voiced concern that extremely short sale timelines could create problems for bankruptcy courts.

According to a recent decision by the Ninth Circuit Court of Appeals, Arizona debtors may be able to protect more of their assets from creditors than debtors in other states.

Although most of a debtor's property is liquidated in a Chapter 7 bankruptcy, certain types of assets are exempt. According to the Ninth Circuit's recent decision in Tober v. Lang, the cash surrender value of a life insurance policy may now be exempt in a new range of cases.

Last month, we wrote about the financial sacrifices that come with training for the Olympics, but what about going bankrupt after winning the gold?

Wrestler Rulon Gardner won the gold medal at the 2000 Sydney Olympics, but now he's filing for bankruptcy. Gardner is in $3 million of debt, according to The Daily Caller.

Last month, Hostess gave its workers' labor unions an ultimatum: accept wage and benefits cuts or find another job. If the unions didn't accept the offer, the company planned to liquidate.

On Friday, the largest union involved, the Teamsters, accepted the new collective bargaining agreement by a narrow vote, Fortune reports. On the other hand, Hostess' bakers' union rejected the offer. However, it doesn't look like CEO Greg Rayburn is going to act just yet on his threat to liquidate the company.

Bankrupt Eastman Kodak has been counting on a patent auction to give the company a much-needed cash infusion.

Last month, the auction for Kodak's 1,100 patents was held, but the bids left much to be desired, NBC News reports. Now the company says that it may call off the sale and instead license its patents to others.

For the 19th month in a row, Phoenix bankruptcies have continued to fall compared to the same period a year ago.

According to the U.S. Bankruptcy Court in Phoenix, there were 1,809 filings in the metro Phoenix area last month, compared to 2,431 filings in August 2011, The Arizona Republic reports. That's a 26 percent drop.

Soft rock crooner John Mayer has been targeted in a Ponzi-scheme bankruptcy case, The Wall Street Journal reports.

Mayer fans can rest easy. The singer wasn't involved in the scheme. He was just allegedly paid with Ponzi scheme money for a performance at a corporate event.

The company behind the special effects in the "Transformers" films and "Titanic" as well as the mind-blowing "hologram Tupac" may be heading towards bankruptcy after hitting a record low this week, Bloomberg reports.

Digital Domain Media Group Inc. saw its stock plunge 39 percent to 60 cents on Friday, bringing the stock to its lowest price since the company's IPO last year. The company will now begin a restructuring that may lead to a bankruptcy filing.

American Airlines is one step closer to emerging from bankruptcy.

On Tuesday, a federal judge threw out its pilots' union contract, allowing American to negotiate new cost-cutting contracts with the union, The Associated Press reports. The company has already negotiated cuts with its maintenance workers, flight attendants, and other unions.