Archive for: ‘February 2011’

Former NFL star filed bankruptcy before committing suicide

February 24, 2011 Posted by kingcade

There used to be a stigma about bankruptcy, but that stigma is long-since gone. In today’s economy, people from every walk of life have filed for bankruptcy to get relief from overwhelming debt. Now it has been announced that even former football stars have turned to bankruptcy.

On Thursday, Dave Duerson left a note behind asking that his brain be tested for chronic traumatic encephalopathy (CTE) before he committed suicide. The 50-year-old former NFL star was experiencing many personal struggles before his death, including financial problems. In September of last year, he filed for bankruptcy after a series of unfortunate financial struggles.

Just like many people, Duerson found himself unable to pay his credit card bill, mortgage and other debts. However, his road to bankruptcy was unique. After his football career, Duerson purchased multiple McDonald’s franchises. Later, he sold the restaurants to purchase a sausage company that supplied meat to McDonald’s.

The outlook was positive, and Duerson’s food company built a state-of-the-art meat production plant. However, the opening of the plant was delayed because of freezer problems. Those problems caused the bank to revoke his line of credit for the company.

Duerson took out a second mortgage on his home to get things started at the meat company. In the meantime, he sued the freezer company and was awarded a judgment for $34 million in 2004. But the freezer company has yet to pay him.

Now, the man was left with two mortgages on his home and mounting bills. The bankruptcy filing listed $34.6 million in assets, but much of that is made up of the judgment owed to him by the freezer company. He also listed nearly $15 million in liabilities. Those liabilities are owed to secured and unsecured creditors such as the mortgage lender, his former spouse, the State of Wisconsin and a bank that issued him a credit card.

This story is an example of how even a successful NFL star can find himself facing financial problems that are not entirely of his own making.

Source: Chicago Breaking Business, “Bears’ Duerson had pending personal bankruptcy,” Becky Yerak, 21 Feb 2011

More than 14 percent of Florida mortgages in foreclosure

February 24, 2011 Posted by kingcade

It used to be that signing your mortgage documents was an exhilarating experience. New homebuyers eagerly agreed to the terms of the loan because they knew it was an important step towards becoming homeowners.

Now, most homebuyers (and lenders for that matter) sign those mortgage documents with trepidation. And in Florida, there is a good reason for their hesitation. According to the Mortgage Bankers Association, more than 14 percent of all mortgages in Florida are in foreclosure. That is the highest foreclosure rate in the country.

People who excitedly signed those mortgage papers only a few years ago are now having trouble making the payments. Perhaps they have lost their jobs, or maybe the adjustable rate mortgage became too high to pay. Or perhaps the homebuyers have encountered a different financial challenge as the Great Recession takes its toll on Floridians. Regardless of the reason, “more than 20 percent of all loans in Florida are somewhere past due or somewhere in foreclosure,” according to the vice president of the MBA.

There is another possible explanation for the rise in the percentage of Florida mortgages in foreclosure. The foreclosure process in Miami-Dade County now takes nearly twice as long as it took in 2007. Once a home enters foreclosure, it takes 742 days for the foreclosure to be completed. That means that as new homes enter foreclosure, more homes are still in the process.

For the 14 percent of homeowners in foreclosure and the 5 percent who are more than 90 days behind on mortgage payments, the future may seem bleak. However, they should know that there are legal options, especially before the foreclosure process begins. An experienced foreclosure defense or bankruptcy attorney can explain those options and help individuals make decisions that protect their assets.

Source: Miami Herald, “Florida’s foreclosure rate is nation’s highest,” Toluse Olorunnipa, 17 Feb 2011

Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

The State of New York Guarantees Court-Appointed Lawyers to Homeowners Facing Foreclosure

February 18, 2011 Posted by kingcade

A recent article in the American Bar Association (ABA) Journal reports that New York will be the first state to offer all homeowners facing foreclosure a court-appointed attorney. According to the New York Times, there are approximately 80,000 foreclosure cases in the New York state court system. Court officials plan to draw appointed attorneys from legal aid groups and volunteer organizations. Judge Jonathan Lippman, the state’s chief judge, has asked the New York legislature for a $100 million increase for legal services programs over the next four years. The first courts to implement the plan will be in Queens and Orange counties.

To read more on this story, visit:
http://www.abajournal.com/news/article/new_york_to_guarantee_a_lawyer_to_those_in_foreclosure_cases

Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

Foreclosure Filings Drop Nationwide as Officials Raise Questions over Process

February 18, 2011 Posted by kingcade

A recent article in the Washington Post reports foreclosure filings fell to about 260,000 last month nationwide, 17 percent lower than in January 2010. In areas where judges and law enforcement have taken aggressive actions against faulty foreclosures, the drop was even sharper.

In Maryland, where Wells Fargo and Ally Financial last month dismissed pending foreclosures because they were approved by a “robo-signer,” foreclosures fell by 70 percent from last January. In Massachusetts, where the state Supreme Court in January invalidated some foreclosures and called into question many others, there was a 66 percent fall.

In Florida, where law enforcement officials are considering criminal charges in foreclosure cases, there was a 54 percent decline. January was also the third straight month in which the number of foreclosure filings fell under 300,000. The trend comes after filings reached above 300,000 for 20 straight months, according to a report released Thursday by Irvine, Calif.-based RealtyTrac.

The number of foreclosure filings began to drop last fall after large mortgage servicers such as Bank of America, J.P. Morgan Chase and Ally put some foreclosures on hold after admitting that some of them had been improperly prepared. Much of the slowdown is expected to be only temporary, until the reviewing of procedures, resubmitting of paperwork and federal investigation is complete.

To read more on the story, visit: http://www.washingtonpost.com/wp-dyn/content/article/2011/02/10/AR2011021007496.html

Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

Bookstore mega chain Borders files for chapter 11 bankruptcy

February 17, 2011 Posted by kingcade

Borders Group Inc. has recently filed for chapter 11 bankruptcy. The filing comes after months of failed maneuvers aimed at avoiding bankruptcy. The group, which operates Borders and Waldenbooks bookstores, finally announced that it does not have the necessary capital to meet its financial obligations.

As the country’s second largest “brick and mortar” book seller, Borders has faced many challenges in recent years. This announcement was not unexpected, and bankruptcy protection may help Borders come back stronger than before.

Borders’ biggest unsecured creditors are five book publishing houses: Penguin Putnam Inc., Hachette Book Group, Simon & Schuster Inc., Random House and Harper Collins Publishers. The companies stand to lose the most if Borders is unable to pay back the money they owe.

Chapter 11 bankruptcy reorganization is not the best way for all companies to resolve debt issues. In fact, for small businesses, chapter 7 or 13 may be a better option. However, for companies of Borders’ size, chapter 11 offers many opportunities. First and foremost, chapter 11 bankruptcy gives Borders the chance to close stores, reorganize its internal operating structure and access new capital.

The company will continue to operate in bankruptcy. However, the company president said today that Borders plans to close about 30 percent of the 644 stores they currently operate.

To make ends meet during this time, GE Capital has agreed to loan Borders $505 million. That loan is subject to the bankruptcy court’s approval. If approved, it will help ensure that the stores Borders chooses to keep open will be able to continue operating.

As you can see, chapter 11 bankruptcy is not an easy solution to Borders’ debt. But it may be the best way for the company to reorganize and get back to business.

Source: Wall Street Journal, “Borders Files for Chapter 11 Bankruptcy Protection,” Joseph Checkler and Eric Morath, 16 Feb 2011

If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy and foreclosure defense attorneys at (305) 285-9100. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.