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GM Finds Solace in Bankruptcy- So Can You!

Friday, 24 July 2009 14:20
Well, GM has exited its bankruptcy protection. YAY!! Oh, wait. It’s not really that great news since the federal government owns 61% of GM stock. BOO! Oh, wait. It’s really not that bad. GM is promising to change their stodgy, clunky, brand-heavy company into a sleek, stream-lined business, ready to go “to infinity and beyond” (credit Buzz Lightyear).

Of the Detroit-based company’s many brands, only four have survived bankruptcy restructuring: Buick, Cadillac, Chevrolet and GMC. The company has also divested itself of such unprofitable brands as Saab, Hummer, Pontiac and Saturn.

According to Fritz Henderson, GM’s CEO, the company will repay its loans to the U.S. government far earlier than the 2015 deadline. He also said that the auto giant is set to launch 10 new products in this country over the next 18 months and 17 more in countries “across the pond”. In addition, GM is assessing whether it will need all of the $50 billion that the federal government has committed to keep the company operating, according to company CFO Ray Young.

A GM spokesperson stated that the company is ready to "get back to the business of building great cars and trucks" and better serving customers. Does anyone but me see the intrinsic problem with this? Such as… there are fewer and fewer Americans with the funds to buy a General Motors automobile or any other car maker’s products, for that matter. Especially for main-stream, Main Street Americans living in the highly industrialized states of Michigan, Ohio, Tennessee, Virginia, Indiana and Delaware, buying a new car right now is most likely not top priority.

Many of the folk in those states have already filed for or are on the brink of filing for bankruptcy protection under Chapters 7 or 13. Paying for food, clothing, education, insurance and shelter is much higher on the list of ‘must-haves’ than buying a new car for most Americans in 2009 (and most likely into 2010).

OK-so GM is saying that their company is coming back strong, but who is helping YOU bounce back from the verge of financial ruin? Let a bankruptcy focused Legal Helpers attorney go over some of your options with you for getting out of debt. It’s very possible that filing bankruptcy is the solution you’ve been waiting for. Contact us today.

CIT May Be The Christmas Grinch

Thursday, 23 July 2009 22:35
CIT Group, Inc., the New York-based giant finance company, disclosed to federal regulators that it is experiencing major monetary difficulties. Just as U.S. retailers are starting to recover from a dismal 2008-2009 holiday season, CIT hammered still another nail into the retail coffin. The finance company is one of the country’s largest providers of factoring services, the business practice that keeps consumer goods flowing from factories to retailers.

CIT, which the Wall Street Journal reports has hired a bankruptcy attorney and is considering filing for bankruptcy, has already received $2.33 billion from the Treasury’s Troubled Asset Relief Program (TARP) in December 2008. It is now also considering the option of participating in the FDIC (Federal Deposit Insurance Corporation) temporary liquidity guarantee program. This program lets cash-strapped companies issue government-backed bonds in order to raise capital at lower cost.

As one of the nation’s largest factoring services, CIT is a major player in ensuring that retail orders get paid for and delivered to retailers. Without these factoring services, consumer goods bound for retail establishments could bring the 2009-2010 holiday shopping season to its knees for the second consecutive year; definitely a bleak prospect for an already bleak retail picture. Financial agents like CIT affect such retail mammoths as Wal-Mart and Target as well as smaller, independent stores.

So … what does this all have to do with YOU? Think about it for a minute. If your favorite stores and shops don’t have the merchandise that you want and can afford to purchase, you’ll stop shopping there. They will have to close, letting their salespeople go and eventually closing their doors…which means more people on unemployment and more Americans seeking the protection of chapter 7 or 13 bankruptcy.

If you have questions concerns about your own personal bankruptcy, get in touch with one of our attorneys that focus in bankruptcy cases every day. Get your free legal evaluation today and don’t let the Grinch ruin your holiday season.

(source: Chicago Tribune, July 15 2009: CIT Woes an Ill Wind for Holidays)

Mets Star Lenny Dykstra Seeks Bankruptcy Protection

Wednesday, 22 July 2009 14:08
No one seems to be safe from our troubled economy these days. Even seemingly wealthy celebrities are falling deep into debt and are unable to deal with their financial burden without help. A prime example of this is former center fielder for the New York Mets Lenny Dykstra filing for Chapter 11 bankruptcy this month.

We know things have gotten bad when our hero’s start feeling the effects of the recession too. According to the U.S. Bankruptcy courts in California, the left-handed player has an estimated $30 million worth of liabilities. This is very bad news for him, since he currently only has less than a hundred thousand in assets.

But how could this happen to a former Baseball super star? Like many other Americans, Dykstra started his own businesses after he retired from playing. These businesses included the production of a professional athletes magazine called “Player’s Club” as well as a Jet charter company. Unfortunately, these businesses have fallen on hard times. Due to several devastating lawsuits and other financial difficulties, Dykstra’s fortune appears to be waning. Filing for bankruptcy turned out to be his only salvation from the massive debt he’d accumulated.

It’s troubling to witness someone with previously so much money lose everything. It makes us wonder what kind of chance the rest of us have when it comes to dealing with our financial difficulties. We’d like to think we can make it on our own, but in these uncertain economic times, outside assistance may be the best solution.

If your finances are spinning out of control, there is help available. Contact a Legal Helpers attorney who focuses in bankruptcy right now and get a fresh financial start you deserve right now.

Oscient Filing for Bankruptcy: What Happens to Laid Off Employees?

Wednesday, 22 July 2009 14:06
It’s been announced recently that Oscient Pharmaceuticals Corp. has filed for Chapter 11 Bankruptcy. Oscient, (located in Waltham, Massachusetts) was responsible for producing the “Factive” product, which is an antibiotic used for fighting bronchitis and pneumonia. The company plans to sell its drugs for $5 million, but they still owe unsecured creditors many times that amount, (estimated tens of millions).

While filing bankruptcy may prove an adequate solution for the failing company, what of its many employees that will lose their jobs as result? Lay off’s are expected, but it’s important to point out that not all Oscient employees will lose their jobs right away. The point of Chapter 11 bankruptcy is to re-organize a company and give it a chance to get back on its feet. So technically, Oscient will still be functioning, albeit under strict observation of the bankruptcy court.

As we all know, our economy is approaching a “2nd Great Depression” status. It’s a terrible time to suddenly find yourself out of work. Sometimes, to avoid a bankruptcy status a company will lay off employees to cut back expenses, and this has been happening all over the United States. Chances are even YOU have been affected by the recession in some way.

If you have recently been laid off or are suffering other kinds of economic issues, there is a solution to help get you back on track. Contact one of our Legal Helpers attorneys for a free legal evaluation and start getting your life back right now.

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ABOUT THIS BLOG:

Richard K. Gustafson, II is an attorney with LegalHelpers.com writing on topics related to bankruptcy from the consumer's perspective. To send comments to Rick, email Blog@LegalHelpers.com.


The Bankruptcy Blog from LegalHelpers.com is produced from the law firm of Macey & Aleman, one of the nation's largest bankruptcy firms. A blog does not create an attorney-client relationship and is not a substitute for specific legal advice from an attorney analyzing your specific set of facts. If you are interested in obtaining information about bankruptcy, you are encouraged to call our law firm at 888-743-5787 or complete our online evaluation for a confidential, risk-free analysis!

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