Filings Passing the One Million Mark-No Relief in Sight

According to the American Bankruptcy Institute (ABI), consumer bankruptcies totaled 1,046,449 for the first nine months of 2009. This dubious milestone marks the first time that filings have run roughshod past the 1 million mark during the first three quarters of a calendar year since the 2005 bankruptcy overhaul took effect. This data comes from the National Bankruptcy Research Center.

These bankruptcy filings from the first three quarters of the year are the highest since the 1,350,360 consumer filings through the first nine months of 2005. Filings for the month of September 2009 reached 124,790, which represents a 41% increase over the same month in 2008, where the number of filings was 88,663.

The September 2009 consumer bankruptcy filings also represent a four percent increase over the 119,874 personal bankruptcy filings of just one month earlier and are the fourth highest single month since the 2005 change in the laws. 

Chapter 13 bankruptcy filings comprised 28% of all consumer cases in September 2009, the same as the August 2009 rate.

If you find yourself needing to file for consumer bankruptcy, call a Legal Helper attorney for experience and knowledge that you can trust. Call toll-free 800-260-1402 today for a free evaluation.

Chrysler’s Chrysalis Incomplete

Any American with a passing interest in business or the future of our country’s automakers has a stake in Chrysler’s success. Since its Chapter 11 bankruptcy April 30, Chrysler sold 20% of its assets to Italian automaker Fiat, 67% to United Auto Workers, and about 13% to both U.S. and Canadian governments.  Their assets have lost $12.1 billion in the past three months. Speculators predicted that Italy’s devastated economy makes it an odd choice for an international merger, no matter how desperate Chrysler was: the majority of that $12.1 billion loss is traced to June, when the logistics of the bankruptcy sale saw some complications.

Part of that $12.1 billion debt is owed to the U.S. government, who covered 2 billion of Chrysler’s debt to the Old Carco (or Old Chrysler).  Met with wide criticism for supposedly “writing a blank check” to car companies, the U.S. government bought part of Chrysler under the condition they would repay the $3.8 billion they lent to cover fiscal expenditures by June 30^th.

“Old Chrysler’s” Chapter 11 bankruptcy hasn’t resulted in a full-on business chrysalis transformation, but they still have time.  Their risky international merge doesn’t have everything to do with their financial problems, but it has potential to decimate the company.  For advice on smart rebuilding after bankruptcy, look no further than the expertise offered by Legal Helpers.  We offer a free initial consultation 6 days a week; call one of our attorneys today at 1-800-260-1402.   

Real Estate Tycoon Defaults on Loans

New York City real estate tycoon Kent Swig borrowed too much money and now cannot pay it back. Sound familiar? Although the debt amount is somewhat larger than that of the average American (!), Mr. Swig still faces the same basic problem as millions of his fellow Americans.

Apparently, the (former) fabulously wealthy Swig made the all-too-common mistake of personally signing for loans to finance his latest real estate projects, placing the lion’s share of his net worth hanging in the balance on the highly leveraged deals.  According to an article in The New York Post, "… Kent Swig is close to filing personal bankruptcy because he can't afford to pay a recent $28 million judgment on his defaulted Sheffield57 condo conversion project in Midtown."

Filing Chapter 13 Bankruptcy

Chapter 13 bankruptcy is an interest-free debt repayment plan through which you consolidate debts and make payment on your debt over a three to five-year period. While in a Chapter 13 debt repayment plan, your creditors cannot collect from you and are required by a Federal Court order to adhere to the terms of the plan. In a Chapter 13 bankruptcy, you must be working or have a consistent source of income for your repayment plan to be approved by the court. Not only must you be able to pay for your monthly living expenses, but you must also be able to make a payment to the court to consolidate your debts. Debts that are generally consolidated in a Chapter 13 bankruptcy are mortgage arrears, balances on vehicle loans, credit card debts and other unsecured debts. All outstanding debts must be included in the Chapter 13 bankruptcy consolidation.

And Now, Back to Kent Swig

In addition to his present financial difficulties, Swig has also been accused of misrepresenting his assets to secure loans, and sources have told The Post that he could face prosecution. According to a biography on the website of one of his companies, "Prior to his current positions, Mr. Swig served as Executive Vice President of The Macklowe Organization".

Apparently, Harry Macklowe suffered from his own massive financial problems with the collapse of the New York real estate market. It seems that Mr. Macklowe has taught Mr. Swig how to fund deals with excessive leverage at inflated prices, while putting his own personal assets on the line.

If you find yourself in massive debt that you can’t repay on your own, filing for bankruptcy might be the best solution. Speak with a skilled, bankruptcy-focused attorney today, and decide if a chapter 7 or chapter 13 bankruptcy might work best for you. Don’t wait till your debt approaches $28 million. Start getting your life back today.