Does it will help to know that you are not alone in the bankruptcy arena?

The Chicago Cubs (the league’s most lovable losers) have filed for Chapter 11 bankruptcy protection as the team, Wrigley Field (the greatest Major League ballpark and largest summertime beer-fest) and related properties are being sold to the Joe Ricketts family. With the filing, Joe Ricketts, billionaire founder of Omaha, Nebraska-based TD Ameritrade, and his family should be protected from any potential claims by Tribune creditors. The Tribune Company, which owns The Chicago Tribune and the LA Times, had previously filed for bankruptcy protection in December 2008; that filing, however, did not include the Cubs.

The Tribune Corporation, which bought the team in 1981 for $20.5 million from the Wm. Wrigley Jr. Company, planned to sell the franchise in 2007, when the failing economy got in the way. It has since agreed to sell a 95% stake in a deal that tops the former record of $660 million paid for the Boston Red Sox in 2002. The Tribune Company will be retaining the remaining 5%.

The Seattle Pilots’ owners, brothers Dewey and Max Soriano, filed for bankruptcy following the 1969 season, ostensibly for being millions of dollars in debt. Although most of the losses were just “on paper” with the actual losses much lower, the franchise faced other, complicated woes. The team changed its name to the Brewers following their relocating to the beer-centric city of Milwaukee. The Pilots were the first MLB team to file for bankruptcy protection.

And talk about the “icing” on the cake. The NHL Phoenix Coyotes, a franchise that has yet to make a profit since moving from Winnipeg, Manitoba in 1996, filed for Chapter 11 protection in May 2009. On September 30, U.S. Bankruptcy Court Judge Redfield T. Baum rejected bids by the National Hockey League and Canadian businessman Jim Balsillie to buy the franchise, saying it could not succeed because he could not properly satisfy the NHL's rights regarding relocation. Balsillie wanted to move the team from Winnipeg to Hamilton, Ontario.

If you find yourself needing to file for Chapter 7 or Chapter 13 bankruptcy, call a Legal Helper attorney for experience that you can trust. Call toll-free 800-260-1402 to speak with a knowledgeable and compassionate bankruptcy lawyer.

Scenario: You are in your 70’s, with enough savings to last you another 20 years, with supplementary social security and if you’re lucky, possibly even a hard-won pension to boot.  Still, your rising health coverage is an issue that you may struggle with due to rising property taxes for your home.

If you think modern retirement is a struggle, you’re certainly not the only one: bankruptcy among those 65 and older rose 150% between 1992 and 2007.  For many mature Americans, bankruptcy is the only recourse to a secure, debt-free retirement.

Can a bankruptcy late in life benefit you? It most certainly can. If you don’t want to jeopardize your retirement with elevating credit card charges, or encumber your children with toppling credit card debt that will be passed down to them after you die.  However, you also don’t want to burden them with funeral and burial costs, which even the most basic life insurance plan should cover since the minimal total costs of the average funeral hang high at $9,000. 

When you file for bankruptcy, federal regulation dictates that only $10,075 in un-matured life insurance is exempt for single individuals and double that amount for covered married couples. Since this is a federal regulation, individual states can overrule and alter the amount of this exemption.  Regardless of geography, bankruptcy trustees can potentially dip into varying amounts of un-matured life insurance to repay your debts in the event of a bankruptcy.

If you have yet to secure a life insurance policy and haven’t emerged discharged from your bankruptcy, you can be denied life insurance.  Many insurance companies can state their reason for rejection as bankruptcy.  Consequently, it’s ideal to secure a life insurance policy before you file for bankruptcy.

Have any more questions about what kind of bankruptcy you’re eligible for as a retired member of society?  Call one of our representatives for a free initial consultation at 1-800-260-1402.  We have the expertise to tackle your complex bankruptcy issues, and can keep your most valuable assets—your security—exempt from debt reorganization.  Call Legal Helpers for bankruptcy help today!

Crossing State Borders with Bankruptcy Filings

“Allowed” verbiage is often used in reference to “allowing” same-sex marriage.  But how often do you fight to be “allowed” to face consequences for offenses you haven’t committed? Joint filing for bankruptcy is hardly something one would rally to be “allowed” to do.  Most spouses fearfully ask if they’ll be “forced” to jointly file in a bankruptcy, which is almost always the case in consumer bankruptcies.  While same sex couples rally state by state for their “better or for worse” rights, they take along with it the responsibility of being forced to jointly file bankruptcy for a debt they didn’t personally accumulate.

However, same-sex couples face the complication of inter-state filing for bankruptcy.  Gay or lesbian married couples are only recognized as married in the state they were married in: cannot file taxes as married in other states or even have a subsequent divorce recognized. So, if a couple married in Vermont or Iowa owns an extravagant home and car in Iowa or Vermont but files for bankruptcy in Texas, Kentucky, Alabama, or any other non-recognizing state, do they jointly file?  The current Defense of Marriage Act rules that states that don’t have legal same-sex marriage don’t have to recognize it at all…for better or for worse.

Consider this fact: the minimum state residency requirement is usually 90 days, and the transferring of major property can occur 4 year before filing for Chapter 7 or Chapter 13 personal bankruptcy.  A same sex couple could easily state an out of state home or car as “exempt assets” in a bankruptcy and put those items in their spouse’s name, even temporarily.  Same sex couples are equally susceptible to abuse of marriage rights, such as moving out of state and failing to recognize alimony or child support in their state of marriage.

U.S. Bankruptcy Trustees are appointed by the U.S. Attorney General, and are administrated by and Executive Office of U.S. Trustees in D.C.  They are a federal entity, yet their jurisdiction often collides with state laws in state-sensitive issues like this.  At the crossroads of state and federal laws, 2009’s new proposed bill the Respect of Marriage Act which could clearly delineate a couple as married regardless of where they live after obtaining that marriage license.  This would greatly clarify marital status inter-state tax filing, bankruptcy, and divorce. 

For complicated bankruptcy questions answered, turn to the pros at Legal Helpers.  Our attorneys are well versed in Bankruptcy Law and can help you obtain the debt restructuring and debt forgiveness bankruptcy plans you so desperately need.  For a free initial debt consultation, call Legal Helpers at 1-800-260-1402