‘You’re Not Bankrupt? Our Bad': Fifth Third Bank Accidentally Reports Customers As Bankrupt

‘You’re Not Bankrupt? Our Bad': Fifth Third Bank Accidentally Reports Customers As Bankrupt

How does go about accidentally being listed as bankrupt? Doesn’t seem possible, what with all the paperwork and such, right? Unless, of course, your bank takes the initiative and does it for you. And that’s just what happened for several Fifth Third Bank customers recently. [More]

One Company Is Working Hard To Make Sure Your Student Loans Stay With You Until You Die

One Company Is Working Hard To Make Sure Your Student Loans Stay With You Until You Die

Sometimes, terrible things happen in life.  When something like cancer strikes, despite your best intentions and hardest efforts, medical bills and unemployment can leave you in a position where paying off your student loans is just not a thing you can make happen. [More]

Judge Orders Bank Of America To Pay $10K/Month If It Wants To Keep Hassling Couple

Judge Orders Bank Of America To Pay $10K/Month If It Wants To Keep Hassling Couple

Here’s how inept Bank of America is. Not only did the bank ignore the fact that a couple’s mortgage debt had been discharged in bankruptcy, continuing to harass them for a debt they no longer owed, it also ignored messages from the bankruptcy court judge. That is until after the judge imposed a $10,000/month sanction on the bank. [More]

Scoot!

Scooter Store Files For Bankruptcy After Overbilling Medicare At Least $47 Million

If you watch daytime TV or have been stuck watching daytime TV while visiting your parents, surely you’re familiar with The Scooter Store. The power wheelchair vendor has had some trouble lately, including accusations of Medicare and Medicaid fraud, a raid by the FBI, and even a lawsuit from the company’s hometown, of New Braunfels, Texas. The company laid off most of its employees, and plans to deal directly with health care providers, rather than blanketing the airwaves and selling directly to consumers. [More]

Judge Tells Outgoing American Airlines CEO He’s Not Getting $20 Million Payout

Judge Tells Outgoing American Airlines CEO He’s Not Getting $20 Million Payout

A couple weeks back, the federal bankruptcy judge overseeing American Airlines’ attempts to get back to profitability approved the carrier’s merger with US Airways but held off on giving approval to a proposed $19.9 million payout to American CEO Tim Horton, who will be out of a job if the merger goes through. Last night, the judge finally got around to ruling on that matter, and it was probably a sad evening in the Horton house. [More]

Bankruptcy Court Signs Off On US Airways/American Merger, But Not On $20 Million Payout To Outgoing CEO

Bankruptcy Court Signs Off On US Airways/American Merger, But Not On $20 Million Payout To Outgoing CEO

Yet another hurdle in the race to the altar for American Airlines and US Airways has been cleared, with the bankruptcy court giving its blessing on the matter, but reserving judgment on a proposed $19.9 million payout to outgoing CEO Tom Horton. [More]

In just a few days, area residents and businesses have raised nearly $80,000 to save Once Upon a Toy.

Community Raises $80,000 In Attempt To Save Local Toy Store

Just a week ago, it looked like an independent Illinois toy store would be going out of business after the bank chose to not renew the store’s business loan for another year. But online efforts to raise money by today’s deadline may have saved the store. [More]

(phildesignart)

Bankruptcy Finally Ends Father’s 4-Year Struggle To Repay Dead Son’s Student Loan

Back in June, we told you about the California man who had spent years trying to sort out his late son’s student loans, only to keep running into dead ends and and roadblocks. Now, after four years of struggling to figure out how much is owed and to whom, he’s finally getting some relief. [More]

(nicole_writes)

Bankrupt Hostess Wants To Reward Executives With $1.8 Million In Bonuses

Only days after being unable to work things out with a striking union, and forcing us all to devour faux Twinkies for our creamy, spongy sugar fix, the folks at Hostess Brands Inc. are asking for a bankruptcy court to approve up to $1.8 million in bonus payments to top executives. [More]

(Alan Rappa)

Hostess To Liquidate Assets Into Sugary, Cream-Centered Cash

Unable to reach a deal with a labor union representing around one-third of its employees, management of Hostess Brands — the Twinkie and Wonder Bread people — have asked a bankruptcy court to allow it to close up shop and liquidate all of its assets. [More]

(Louis Abate)

Pizza Franchisees Say Chain Owners Took Groupon Money But Didn’t Share

Back in August, the owners of New England’s Upper Crust chain of pizzerias ran two offers on Groupon, selling more than 6,000 $12 vouchers that could be redeemed for $25 in food. But some franchisees who run independently own Upper Crust stores say they were not told in advance about the Groupons and that they never saw a lick of that cash. [More]

(Alan Rappa)

Forget The Fiscal Cliff, Twinkies Could Soon Disappear Forever

Already struggling to work its way out of bankruptcy protection, Hostess is now in the midst of a strike that the company says could force it to close up shop for good and liquidate all of its cream-filled products. [More]

(Alan Rappa)

To Preserve The Brand, Hostess Leaves Equity Owners Without A Twinkie To Show For Their Investment

Back in January, Hostess Brands Inc., makers of the Twinkie and lots of other snacks (but mostly the Twinkie) declared bankruptcy. Yesterday the company finally filed its plan to get out of bankruptcy, which basically amounts to telling its equity owners, “Thanks for all the money, now go away.” [More]

We Cosigned Our Unemployed Son's Student Loans. Now We're Screwed

We Cosigned Our Unemployed Son's Student Loans. Now We're Screwed

If you retain one piece of information from reading this site, let it be this one: never co-sign anyone’s student loans. Not your spouse’s student loans. Not your best friend’s student loans. Not your nephew’s student loans. Not even your own child’s student loans. It is the worst possible kind of debt to assume on behalf of someone else. The balances can be huge, the debt can’t be discharged in bankruptcy, and there’s nothing to repossess. That’s what anonymous parents M and D have learned, the very hard way. [More]

San Bernardino Declares Fiscal Emergency, Prepares To File For Bankruptcy

San Bernardino Declares Fiscal Emergency, Prepares To File For Bankruptcy

California continues to show signs of how hard the housing crisis has hit it, with San Bernardino likely to become the third city to declare bankruptcy in the state. The city council declared a fiscal emergency, which will allow it to file for bankruptcy protection without having to discuss it with creditors. [More]

Report: Bankruptcies Dropping Toward Pre-Crash Levels

Report: Bankruptcies Dropping Toward Pre-Crash Levels

We’re nearing the All-Star break for baseball, which means it’s time to enjoy the annual tradition of looking at the American Bankruptcy Institute’s half-year stats. The bad news is that a butt-ton of people and businesses in the U.S. are still filing for bankruptcy, but on the up side, that number continues to show a downward trend after its most recent peak in 2010. [More]

City At Vanguard Of Housing Crash Could File Bankruptcy This Week

City At Vanguard Of Housing Crash Could File Bankruptcy This Week

Back in August 2007, when many of us were still taking out adjustable-rate loans to pay for the water slide on our new champagne-filled jacuzzis, reports of impending doom were coming Stockton, Calif., a city that had suddenly jumped to the head of the foreclosure pack, with 1-in-27 homes being taken back by the bank. Now, five years on, it looks like Stockton could be due for another ignominious honor, as it stands to become the largest U.S. city to declare bankruptcy. [More]

Debt Collectors Now Going After Former Hollywood Video Employees

Debt Collectors Now Going After Former Hollywood Video Employees

Zeke once worked for now bankrupt and defunct Hollywood Video. Employees had special accounts allowing them to rent older movies (more than a few weeks old) for free and not have to pay late fees when they didn’t bring them back. Zeke is sure that he wouldn’t hallucinate free movie rentals, but the collection agency that sent him the letter insists that this policy never existed, and that it’s up to him to prove that he didn’t owe the company $28.95 in late fees at the time he quit. [More]