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One of the primary reasons that people are filing for bankruptcy these days is to let go of and truly walk away from real estate that is significantly underwater or in foreclosure. Bankruptcy is in nearly all cases a vastly more cost-effective and time-efficient means of walking away from a home than is a short sale in which homeowners must negotiate with and often pay off lenders to get their agreement on the sale (not to mention the tax liability that short sales can leave them with!), and it is certainly more effective than simply letting a house go to foreclosure, which, particularly here in Michigan, can result in potentially huge deficiency debts to the mortgage-holding bank.

However, the surrender of a home in bankruptcy, which requires no negotiation with creditors or banks, incurs no tax liability, and leaves you free from worry over collections for deficiencies owed, unlike short sales, does not instantly immunize a homeowner from all costs associated with the property.

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Tags: Bankruptcy, Home Bankruptcy

Jefferson County officials say the county is moving closer and closer towards filing for bankruptcy.  Commissioner Jimmy Stevens stated, “Bankruptcy has been on the stove, possibly moved to the front burner.”

This week, a bill that would allow the county to raise taxes to make up for their removal of occupational taxes.  Currently, county officials believe that if they do not declare bankruptcy, they will have to lay off hundreds of county workers.  Officials estimate the layoffs would account for about 40 percent of people employed by the county.

So far, the county has already made $30 million in budget cuts and expects to have to cut around $73 million more from their annual budget.

Contact the Birmingham personal bankruptcy lawyers of Greenway Law, LLC at 205-324-4000 today, if you or someone you know is considering filing for bankruptcy in Birmingham.

Tags: Bankruptcy, Jefferson County

In Chapter 7 or Chapter 13 bankruptcy, debts are classified according to certain categorizations established by the Federal Bankruptcy Code: administrative, secured, priority unsecured, and unsecured. These classifications are especially important in Chapter 13 bankruptcies, in which the class of a debt determines in what order and to what extent the debt is paid by the Chapter 13 Trustee through the Chapter 13 payment Plan.

Priority unsecured debts are paid second-to-last in a Chapter 13 Plan, and, in either a Chapter 7 or a Chapter 13 bankruptcy, a priority classifications generally means that the debt is non-dischargeable.

Income taxes, along with child-support and spousal support payment deficiencies, intentional tort lawsuit damage awards, unpaid wages owed to employees, contributions to employee benefit plans, certain claims of farmers or fishermen, and others, are, generally, priority unsecured debts that are not dischargeable.

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Tags: Bankruptcy

Lehman Brothers Holdings Inc. on Tuesday officially emerged from Chapter 11 bankruptcy protection after nearly 3 1/2 years and said creditors of the investment bank will start getting paid next month. Read the Daily Bankruptcy Review article via The Wall Street Journal.

Financier R. Allen Stanford was found guilty of orchestrating a $7.1 billion Ponzi scheme, WSJ reports.

Former MF Global Holdings Ltd. Chief Executive Jon Corzine’s family talks to Vanity Fair.

Bloomberg reports that the New York Mets might only have to pay $30 million following a ruling against them, a small amount of the $386 million Bernard Madoff trustee Irving Picard first sought.

A judge denied efforts from an American Airlines pilots union to form its own committee in its parent’s bankruptcy, Reuters reports.

Also according to Reuters, the number of “Chapter 22” bankruptcies has jumped in the beginning of 2012.

Credit Slips discusses Greece’s resemblance to a normal restructuring.

Bank of China and other Proview Technology Shenzhen Co. creditors

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Tags: Bankruptcy

The Jefferson County commissioner has announced that the county has an 80 percent chance of filing for bankruptcy.

The commissioner made this announcement after a day full of meetings with bankruptcy lawyers. She is now the first democrat that supports the plan for the county to file for bankruptcy. This option is looking like more and more of a possibility if a settlement is not reached with creditors.

Creditors have yet to respond to a settlement that was submitted last week that will increase sewer costs in order to erase $1.3 billion of a $3.14 billion sewer debt that has been around since 2008. A discussion with creditors was hoped to be reached by this week, but it has not occurred at this time.

If you or a loved one has been considering bankruptcy, you need experienced representation on your side. Contact the bankruptcy lawyers in Birmingham of Greenway Law, LLC, by calling 205-324-4000 today.

Tags: Bankruptcy, Jefferson County