Lanigan & Lanigan, P.L.
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Bankruptcy
Alabama Files Largest Chapter 9 Bankruptcy Jefferson County, Alabama files largest Chapter 9 bankruptcy making it the biggest Chapter 9 filing in municipal bankruptcy history in the U.S. Alabama’s most populous county (658,000) filed after the commission and receiver entered into a comprehensive term sheet setting forth a framework for the resolution of the sewer system crisis which put the county more than $4 billion into debt by an alleged corruption-riddled sewer project. The chapter of the U.S. Bankruptcy Code providing for reorganization of municipalities was enacted in 1934 during the Great Depression. Since then, there have been fewer than 500 municipal bankruptcy petitions filed. Interesting in the process was the fact that the county’s biggest creditor, JPMorgan Chase, had wanted to avoid bankruptcy, according to company spokeswoman Jennifer Zuccarelli who said that they “offered very substantial financial concessions to make the deal happen.” Alabama Chapter 9 Bankruptcy This is a Chapter 9 bankruptcy which provides the municipality protection from creditors. Meanwhile it develops and negotiates a plan for adjusting its debts. That reorganization is usually achieved by extending debt maturities, reducing the amount of principal or interest, or refinancing the debt by obtaining a new loan. Since 1981, 37 cities, towns, villages and counties nationwide have filed for Chapter 9 bankruptcy. That includes six in Alabama now that Jefferson County has filed. Jefferson County, with a population of about 660,000, has some of the richest neighborhoods in the country as well as pockets of urban poverty and...
Bankruptcy
There are many Florida bankruptcy options and it is a good idea to talk through those options with an experienced bankruptcy attorney. Bankruptcy laws were enacted to help someone who is in a great amount of debt to be released from personal liability for specific debts. The debtor is no longer legally required to pay the debts that the court rules as discharged. The U.S. is experiencing a challenging economic situation. Bankruptcy and Florida Bankruptcy Options Every day, you see more friends, family, neighbors losing their jobs, falling behind on their mortgages, and drowning in debt that they never imagined. A few years ago, most never believed that they’d be in this situation, but as the economy drops and unemployment increases, people are losing their homes, their cars, and their way of life. Thankfully, there is bankruptcy for times like this. In the U.S., bankruptcy is governed by a federal law adopted in 1898 and amended many times, such as with the Bankruptcy Reform Act of 1978 and in the spring of 2005. In 1934, the Supreme Court wrote about the purpose of the bankruptcy law: “It gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.” Once a judge declares a bankruptcy discharged and you are released from debt, you’ll feel relief from harassing creditors and debt collectors because the discharge is in fact a statement to your creditors to expect less money from you in repayment. The fundamental goal of the federal bankruptcy laws is to give debtors a financial “fresh...
Bankruptcy
When filing Chapter 13 Bankruptcy in Florida, you may be required to make other court appearances in addition to your confirmation hearing. If your Chapter 13 bankruptcy plan is drafted properly, your confirmation hearing will probably be the only time you have to appear in front of a bankruptcy judge, however there may be additional appearances required. Reasons for Chapter 13 Court Appearances: Confirm your repayment plan if you later amend it Value an asset if your plan proposes to pay less for a car or other property than the creditor thinks it’s worth — which could happen if you try to diminish the item’s value Respond to requests by a creditor or the trustee to dismiss your case or amend your plan Respond to a creditor who opposes your right to discharge a debt (if claiming you incurred the debt through fraud) Discharge a type of debt that can be discharged only if the judge decides that it should be (i.e., student loan due to hardship) Eliminate a lien on your property that will survive your Chapter 13 bankruptcy unless the judge removes it Reaffirm a debt that would otherwise not survive your bankruptcy Consult with Florida Bankruptcy Attorney Eric Lanigan You really need to talk to a lawyer for the best possible outcome if by chance any of these court appearances are required. There will be judges and trustees who seem to be helpful, but many will also make every attempt to make your life difficult. They may bully you until you go and hire an attorney so do it before there are problems. Consult with experienced Orlando...
Bankruptcy
How does a city function under the threat of bankruptcy and what happens when cities file bankruptcy? What Happens When Cities File Bankruptcy? Vallejo, Calif., Central Falls, R.I.; Harrisburg, Pa.; Boise County, Idaho, and Jefferson County, Ala., have all filed bankruptcy or will declare bankruptcy soon. In their situations, budget cuts happen first closing fire houses and thinning the ranks of police. Abandoned and foreclosed homes pockmarked neighborhoods force businesses to leave. Next taxpayers go and the prostitutes and drug-sellers move in. This is what happened in Vallejo, California. Few cities get so desperate as to seek bankruptcy protection. Since 1937, when Chapter 9 bankruptcy filings first became an option for municipalities, there have been only 625 filings according to ABC News. Only five communities this year have filed for bankruptcy. Six filed in 2010. Jefferson County, Alabama, was hit hard too. The county can’t afford to make repairs to its aging bridges so for safety, school busses must go around them, racking up 1,722 miles in detours at an added cost of $2.5 million a year, according to Bloomberg. Companies run out of money and stop paying taxes. Tax payers leave. With increasing insurance costs and constant need for city services, cities go into debt. When their credit lines run out, the city files for bankruptcy. Consult with Lanigan and Lanigan on Florida Bankruptcy If bankruptcy is filed by cities in hard times so you shouldn’t feel guilty. A tough Florida economy has made it nearly impossible for families, businesses and individuals to recover . Meet with Winter Park bankruptcy attorney Eric Lanigan and Roddy Lanigan of Lanigan and Lanigan, P.L.,...
Bankruptcy
Third Quarter 2011 Home Foreclosures Increase RealtyTrac CEO James Saccacio said the initial jump in home loan defaults from July to September 2011 is significant because it is the first increase after five consecutive quarterly declines in Florida, suggesting banks are addressing a backlog of homes in foreclosure and are now beginning to move on more recent home loan defaults. The third-quarter increase in initial defaults was largely a product of a spike in August. In September, default notices were off 10 percent from August, RealtyTrac said. Federal, state and bank officials are expected to hold another round of negotiations in Washington and Florida’s attorney general dismissed media reports that a final settlement is imminent in multi-state negotiations over alleged foreclosure abuses by U.S. banks.State Attorney General Pam Bondi said states should return to bolster any deals if they’ve pulled out of the negotiations, according to Reuters. Some states aren’t on board and they’re trying to bring back some people who left. Negotiations toward a settlement have been going on for months with penalties on the banks of up to $20 billion being discussed. A settlement would free up a backlog of foreclosures weighing on housing markets and dragging on economic growth. A pickup in foreclosure activity also means a potentially faster turnaround for the U.S. housing market. Experts say a revival isn’t likely to occur as long as there remains a glut of potential foreclosures hovering over the market. Florida Bankruptcy Attorneys Lanigan and Lanigan Consult with Winter Park Florida bankruptcy lawyers Eric Lanigan and Roddy Lanigan before allowing your payments to be late and your mortgage to...
Bankruptcy
The Florida bankruptcy means test is what Eric Lanigan and Roddy Lanigan will use to determine whether your income is low enough for you to file Chapter 7 bankruptcy.In Florida it varies by county, by ZIP code and is designed to keep filers with higher incomes from filing for Chapter 7 bankruptcy. Higher income filers who cannot pass the means test may have to use Chapter 13 bankruptcy to repay a portion of the debts. This means you may not be able to use Chapter 7 bankruptcy to wipe out your debts. Having to take a Chapter 7 means test doesn’t mean that you have to be broke in order file a Chapter 7 bankruptcy. It is possible that you can earn significant monthly income and still qualify for Chapter 7 bankruptcy if you have a lot of expenses, such as a high mortgage payment. Can You Pass the Florida Bankruptcy Means Test? The first step to taking the means test is knowing if your current monthly income is less than the median income for a household of your size in Florida. You can file for Chapter 7 if this is true. That’s it, you passed. How Does the Chapter 7 Means Test Work? The higher your disposable income, the more likely it is that you won’t be allowed to file a Chapter 7 bankruptcy. The means test was created to limit the use of Chapter 7 bankruptcy to those who truly cannot pay their debts. It does this by deducting specific monthly expenses from your current monthly income your average income over the six months before you file...
