Tag: Chapter 11 Bankruptcy

Bankruptcy Law, Credit, Timothy Kingcade Posts

Advantage Rent A Car to File for Bankruptcy

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Advantage Rent A Car will file for bankruptcy after Hertz terminated lease agreements that provided the company with its cars. Shares of Hertz fell as much as 17 percent after Advantage’s owners said the book value of the cars passed to them at the time of the sale was too high. Hertz terminated lease agreements on 24,000 Advantage vehicles last Saturday, saying Advantage’s owners had failed to make some payments.

Franchise Services of North America (FSNA), which also owns the U-Save and Canada’s Rent-a-Wreck brands, said it would file for Chapter 11 bankruptcy protection for Advantage as early as Tuesday. Advantage operates in 33 states, including airport locations serving 60 of the top 70 airports across the United States.

Click here to read more on the story.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. 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 website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Rapper DMX’s Latest Bankruptcy Drama

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Rapper DMX, whose real name is Earl Simmons, filed for bankruptcy in July, but according to the Justice Department there have been some problems. DMX’s attorney is urging the Manhattan bankruptcy court to let the rapper exercise his right to reorganize under Chapter 11.

However, watchdog, U.S. Trustee Tracy Hope Davis, has asked the court to convert the rapper’s Chapter 11 restructuring into Chapter 7 liquidation or throw out the case entirely. This is following the rapper’s failure to appear at a meeting with his creditors and inconsistent information regarding his financial standing.

In court papers filed last week, DMX’s bankruptcy lawyer said his client “is committed to fulfilling his obligations as a debtor in possession and successfully reorganizing under Chapter 11.” This includes attending a rescheduled meeting with his creditors and turning over financial information related to the noted discrepancies. One in particular, involves a filing listing of $0 worth of clothing among his assets, while another says he spends $1,000 a month on clothing.

The rapper filed for Chapter 11 bankruptcy protection just days after his arrest on suspicion of drunk driving; listing less than $50,000 in assets and $1 million to $10 million in debt- $1.2 million being in child support obligations.

Click here to read more on the story.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. 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 website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

Joe Francis Claims Bankruptcy Trustee Aims to Destroy Girls Gone Wild Brand

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Girls Gone Wild founder, Joe Francis says the bankruptcy trustee who recently took over his adult-entertainment business wants to destroy the company as part of his “moral personal crusade” against the brand. Since a bankruptcy judge appointed Neilson to take over Girls Gone Wild’s operations in April, Francis said that Neilson and his attorneys have been “raping the company of every dollar they can get” in legal fees.

“Todd Neilson is a devout Mormon who is hard pressed to destroy me and destroy Girls Gone Wild just because of personal animosity,” Francis, 40, said. “It’s religiously rooted.”

In an emailed statement, Neilson, an accountant, said that he and his attorneys “are fulfilling our well-established duties with respect to the bankruptcy estates—nothing more and nothing less.”

Francis is not the only businessman to complain about how much bankruptcy costs. Court papers show that Neilson got court permission to pay attorneys up to $980 an hour for their work. So far, Neilson has filed a lawsuit to try to pull the Girls Gone Wild trademarks, copyright and website names back from a quiet West Indies company that he said paid nothing for them, according to court papers. In court papers, Neilson said, “the West Indies company is part of a web of offshore entities used by an asset-protection specialist involved with Francis and the Girls Gone Wild entities.”

Click here to read more about the Girls Gone Wild bankruptcy lawsuit and founder, Joe Francis.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. 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 website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy Costs Attacked

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A recent article in the Wall Street Journal reports that Federal watchdogs are preparing to exert more control over costs in big bankruptcy cases. The new guidelines are expected to be unveiled July 1st and aim to cap fee and expense applications submitted by attorneys for corporate debtors and sometimes creditors. The concern with these new guidelines is that unjustified costs can give the impression that professionals are ‘feasting off a corporate carcass that rightly belongs to the people and businesses they are serving.’

In large Chapter 11 cases, the corporate debtor typically foots the bill for its own lawyers and advisers and professionals retained by some creditors. Judges ultimately decide whether to approve expense and fee requests. U.S. trustees, who are Justice Department employees, watch over the conduct of parties in large corporate bankruptcy cases, including examining fees and expenses. The proposed guidelines, which are expected to apply to attorneys in bankruptcy cases with $50 million or more in assets or liabilities, have gone through two drafts so far.
Some in the field say time and money spent scrutinizing small costs itself adds up and can distract from the bigger task of repayment and reorganization. The push on costs comes as expenses from flights and hotels to photocopies and minibar candy billed by bankruptcy professionals are under greater scrutiny, according to dozens of lawyers and other advisers.

Click here to read more on bankruptcy costs being attacked http://online.wsj.com/article/SB10001424127887324031404578479250357752788.html

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. 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 website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

Florida Brain Injury Hospital Files for Bankruptcy

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The Florida Institute for Neurologic Rehabilitation Inc. filed for bankruptcy last week in Tampa. The hospital itself is located in Wauchula, a small city in Southwest Florida, and treats brain injuries. A few months ago, the state began investigating the hospital on reports of patient abuse and neglect. Along with three other affiliated institutions, the hospital filed Chapter 11 bankruptcy petitions on Friday. Court filings showed the institution owes between $3 million and $30 million to hundreds of creditors and their assets total less than $150,000.

In August, Florida officials ordered the hospital to send 50 patients to other facilities. This occurred shortly after a story by the Bloomberg News revealed the institution had a history of violence with its patients. The hospital’s creditors include: insurance companies, law firms, medical supply companies, water and electric utilities, the county tax collector and a public relations firm.

To read more on this story visit: http://www.bloomberg.com/news/2013-01-05/florida-brain-injury-facility-files-for-bankruptcy.html

Or visit: http://www.miamiherald.com/2013/01/07/3170982/fla-brain-injury-hospital-files.html

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. 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. at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

GM Relieved from Paying Federal Income Taxes for Years to Come

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General Motors received a government bailout in 2009 of approximately $49.5 billion. After generating a reported $13 billion in profit since 2009, $7.6 billion was made in 2011; however General Motors paid no income taxes for 2011. The spokesman for GM disclosed that GM would not have to pay income taxes for “many more years.”
In 2009, GM received the government bailout after filing for bankruptcy and recording about $18 billion in losses. According to the U.S. Treasury Department, GM must record at least a $1 billion profit for at least 18 straight quarters before they will be expected to pay federal income taxes, again. GM is still paying a worldwide tax and state taxes. GM’s limited liability partner, the Chrysler Group, is taking advantage of the partnership and not paying federal income taxes, either.
Ford Motor Co. has also avoided paying federal income taxes due to profit losses of up to $30 billion in previous years. Auto manufacturers are not the only major corporations receiving huge tax breaks from the government. AIG and Citibank have also received government bailouts after major profit losses.
To read more on this story visit: http://www.torquenews.com/1081/despite-massive-profits-gm-pays-zero-federal-income-taxes
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. 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. at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Tax Representation Firm JK Harris to file Chapter 11 Bankruptcy

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The CEO of one of the nation’s largest tax representation firms, John K. Harris, has suspended all current operations at JK Harris and will reportedly file Chapter 11 bankruptcy. Since October 2011, Harris has been attempting to restructure and possibly sell the business and two affiliates under Chapter 11 bankruptcy protection.
Harris is calling the firm’s current state a “reorganization process.” By filing Chapter 11 bankruptcy, Harris is attempting to keep many of the company’s assets while reorganizing and restructuring JK Harris’ finances.
The company who made its name by marketing the slogan, “resolving taxpayer’s debt issues for pennies on the dollar,” has been in financial crisis after multiple client settlements, where plaintiffs claimed they had been misled by JK Harris. Harris’ firm has a countless number of former and current clients who claim to have paid large amounts in fees after being promised compensation and receiving little, if any, return.
To read more on this story visit: http://www.examiner.com/tax-preparation-in-national/jk-harris-to-file-bankruptcy-shutdown-fueled-by-taxpayer-complaints
If you are in a financial crisis and are considering filing Chapter 13 bankruptcy, contact an experienced attorney who can advise you of all of your options. Our bankruptcy attorneys at Kingcade & Garcia can help families and individuals get the most out of Chapter 13 bankruptcy. We fully evaluate your financial situation, debt and income to make sure that Chapter 13 is your best option. Many people who come to our firm are surprised to discover that Chapter 13 may not be the right option, and that with the assistance of an experienced and qualified lawyer, they can be better served by Chapter 7’s debt elimination strategies. You can find more useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

Bookstore mega chain Borders files for chapter 11 bankruptcy

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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.