April 12, 2011 10:11 AM

Howrey Faces Involuntary Chapter 7 Filing by Creditors

Posted by Brian Baxter

Howrey, which dissolved last month after 55 years practicing law, has been hit with an involuntary Chapter 7 petition filed by several of the defunct firm's creditors in the Northern District of California. the filing seeks to liquidate Howrey's remaining assets.

Latham & Watkins restructuring partner Peter Gilhuly, who is advising Howrey as it winds down its operations, declined to comment on the petition when reached via e-mail this morning.

According to a two-page petition filed late Monday in U.S. bankruptcy court in San Francisco, Howrey owes roughly $36,609 to three petitioning creditors represented by William McGrane of Trepel McGrane Greenfield, a firm based in San Francisco and San Jose.

McGrane, who wasn't immediately available for comment, is listed as counsel to Give something back, inc., Jan Brown & Associates, and Matura Ferrington Staffing Services, Inc.

Give something back, an Oakland-based office supplier, claims it's owed $2,841, according to the petition. Jan Brown & Associates, a San Francisco-based court reporting service, claims the defunct firm owes it $944. And Matura Ferrington, a Los Angeles-based legal recruitment agency, states it's owed $32,824.

Blank Rome bankruptcy and restructuring partner Andrew Eckstein is advising Citibank, a secured lender that is owed roughly $75 million from Howrey.

Howrey also faces civil suits filed under the WARN Act in New York and San Francisco related to the nonpayment of wages to certain former employees after Citi slashed the firm's payroll funding on March 31.

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Howrey Faces Involuntary Chapter 7 Filing by Creditors is a post from: Chapter 7 Bankruptcy Information

a Las Vegas Bankruptcy Attorney Gives Tips on Filing for Bankruptcy

Being a Las Vegas Lawyer I’m versed in working with both Chapter 7 and Chapter 13 personal bankruptcies. Unfortunately, Vegas can be considered the Bankruptcy capital of the US. So, before considering a a Las Vegas Bankruptcy you should recognize what bankruptcy can do for you. This post is a brief essay about the automatic stay in Bankruptcy.upon filing bankruptcy, as a debtor, an automatic stay is introduced. What an automatic stay prohibits creditors from doing certain actions. for example, once bankruptcy is filed a creditor cannot due the following:Commence or continue a lawsuit towards you in any effort to collect the debts that you allegedly owe.Continue with any collection calls. Once bankruptcy is filed a collection agency must cease and desist all attempts to collect any alleged debts.All repossessions must stop. please note that if you’re behind on payments, filing a Chapter 7 bankruptcy can in the short term stop the repossession of one’s car. but, the stay is only short-lived. The creditor’s can be able to reposess your car if they decide to file a request to lift the automatic stay.Filing bankruptcy can stop the foreclosure sale of your house. Again, with a chapter 7 bankruptcy, this is temporary. a chapter 13 bankruptcy can afford you more protection in case your goal would be to stop a foreclosure sale.Filing bankruptcy can stop the garnishment of one’s wages.This automatic stay can last until the following:1. At the request of a creditor, the judge may lift the automatic stay.2. The item of property no longer is associated with the person filing for bankruptcy.3. The debtor gets the discharge. This occurs during when a chapter 7 bankruptcy is filed and a foreclosure and /or repossession is temporarily halted. after the debtor gets a discharge a creditor is then free to purse repossession and foreclosure on the debtor’s residence.

Therefore, with an automatic stay, a bankruptcy can allow you to get your financial affairs together, supply you relief from bothering calls from creditors, and cease the garnishing of your wages. but, keep in mind in the case of a chapter 7 bankruptcy these outcomes are only short-term.Being a Las Vegas Bankruptcy Lawyer I’m versed in working with both Chapter 7 and Chapter 13 personal bankruptcies. Unfortunately, Vegas can be considered the Bankruptcy capital of the US. So, before considering a a Las Vegas Bankruptcy you should recognize what a bankruptcy does. This post is a brief essay about the automatic stay in Bankruptcy. Share and enjoy:

A Las Vegas Bankruptcy Attorney Gives Tips on Filing For Bankruptcy is a post from: Chapter 7 Bankruptcy Information

I am currently 15 months off my Chapter 7 bankruptcy being discharged and I now have 3 credit cards with zero balance and a Car loan which has been paid on time every month.

I make 55k a year and am wanting to buy a home and stop renting. Do you believe I will be able to get a home mortgage?
If so, what type of interest rates would you suspect I would get or type of payment with taxes based on a 150k home loan? I live in El Paso Texas.
Thanks!

Fill out a lending tree app online.. It is no pressure, no obligation and will give you an idea.

Provided you qualify otherwise you will, but be prepared to pay a much higher rate than normal. After 3 years following your discharge the rates bump down, and then after 5 years you should not have to pay the penalty rate provided of course you've kept a clean credit record.

I'm sure you'll be able to get a mortgage, but with a very high interest rate. maybe 7.63 % because you are still at risk. just be sure to deal with a bank rather than these prime-mortgage dealer. they will take you for all the money you have and will not be willing to work with you should an emergency arise.

Most reputable lenders will want to see your bankruptcy discharged for two years with reestablished credit. In my area, they won't come near you unless two years have elapsed. you will pay a higher interest rate this fresh off the bankruptcy. I really cannot give you a ball park b/c I don't live in Texas, but I've seen new bankruptcies pay about 4% higher interest than everyone else.

When you want to rebuild your credit after bankruptcy and get a home loan the sooner you start the better. You've been doing the right thing so far and your income is OK.

The best advice I can give is to start shopping around and don't be put off by refusals. if you get an offer, even if the interest is high, take it and pay it off regularly. After a couple of years of good credit you can refinance at a lower rate.

There's a website here with advice on this topic which I hope will help.

Good luck!

Absolutely! you didn't have to wait for the Ch 7 to be removed. Trust me, I purchased a home less than 2 years after filing for bankruptcy.

I would start with pulling your credit from all three agencies, make sure the accounts listed are yours. once you have verified everything, get your score. anything over 620 is eligible for a mortage. The higher the score, the lower the mortage rate will be.

If what you have indicated is true, then your score is probably higher than what you think.

$150k = $1200 with PITI (this is just a guestimate)

Good luck!

Getting a Mortgage with a Bankruptcy?

Getting a Mortgage with a Bankruptcy? is a post from: Chapter 7 Bankruptcy Information

I am planning on filing Chapter 7 bankruptcy due to a failed business and a foreclosure on investment property. Total debt is 190K and my total household income for a family of 3 is also 190K. I am wondering if I am have too much income per the new bankruptcy laws. I would like to avoid chap 7 but I can not afford this additional debt.

New Bankruptcy Laws and Salary limits?

New Bankruptcy Laws and Salary limits? is a post from: Chapter 7 Bankruptcy Information

DAYTON — Advanced Disinfection Technologies LLC, which does business as ADTec, filed for Chapter 7 bankruptcy Feb. 7 in U.S. Bankruptcy Court.

The business, 2996 Henkle Drive, Suite J, in Lebanon, listed assets of under $50,000 and liabilities of between $1 million and $10 million.

Neither Jeffrey Szekely, the company’s president, nor Howard S. Levy, the company’s attorney, could immediately be reached for comment.

An employee, Vivien Carmichael, said the business was “winding down” operations. She said the company has been dealing with a patent infringement lawsuit.

According to its website, adtecbio.com, ADTec develops, patents and brings to market innovative disinfection products. It started operations in 2008.

Chapter 7 bankruptcy filings usually lead to the liquidation of a company.

Contact this reporter at (937) 225-7457 or bsutherly@DaytonDailyNews.com.

Disinfection company files for bankruptcy is a post from: Chapter 7 Bankruptcy Information

Borders Group Inc. plans to close almost half of its stores in the Chicago area as part of its proposed Chapter 11 bankruptcy protection, according to a Wednesday filing in U.S. Bankruptcy Court in New York.

According to the Borders Web site, the bookseller has about 30 stores in Chicago and its suburbs, including a few Indiana locations.

In Chicago, five of eight stores will close, including the one at North Avenue and Halsted Street, as well as those in Lincoln Park, Uptown, Lincoln Village and Beverly. the Hyde Park store is already in the process of closing and will shut its doors on March 7. This means the only Borders superstore left in the city will be in the Loop. a Borders-owned Waldenbooks in Citicorp Center will also remain open.

Borders stores in Norridge, Evanston, Mount Prospect, Deerfield, Bolingbrook, St. Charles, Crystal Lake, McHenry, DeKalb and Matteson are also slated for closure. outside of Illinois, locations in Merrillville, Ind., and Fox Point, Wis., will be closing.

Borders has a full-time workforce of 6,100 people and operates 508 superstores, as well as the Waldenbooks chain. the company said it was planning to close about 30 percent of its total stores in the next several weeks.

The Borders on Michigan Avenue in Chicago closed in January.

The following stores are closing:

4718 N. Broadway Ave.

161 N. Weber rd.

6000 Northwestern Hwy.

49 S. Waukegan rd.

2520 Sycamore rd.

2221 Richmond rd.

909 N. Elmhurst rd.

7100 West Forest Preserve Ave.

2074 Southlake Mall, Merrillville

8705 N. Port Washington, Fox Point

The following local stores are staying open:

500 W. Madison St. (Waldenbooks)

2216 S. Randall rd.Chicago Ridge

Ridgeland Avenue and 95th Street (Borders Express)

1660 S. Randall rd.

1 N. LaGrange rd.

15260 S. La Grange rd.

1540 Golf rd.

10135 Indianapolis Blvd., Highland

Nearly half of Chicago-area Borders to close

Nearly half of Chicago-area Borders to close is a post from: Chapter 7 Bankruptcy Information

Nearly three years after a tiny North Carolina phone company grew six-fold by swallowing the major landline networks of Maine, new Hampshire and Vermont, it convinced a federal bankruptcy court judge last week that it could try again at running them.

FairPoint Communications Inc. got the green light to emerge from Chapter 11 from Judge Burton Lifland of the U.S. Bankruptcy Court in new York City and should complete the process by Jan. 31, the company’s Vermont president, Mike Smith, said in an interview.

“We’re very pleased with the judge’s action today,” he said. “We’re looking forward to finalizing the process by the end of the month.”

The ruling was expected after Vermont regulators gave their OK on Dec. 23 to the reorganization plan.

FairPoint operates in 18 states, including Florida where it operates in Port St. Joe, and Vermont’s Public Service Board was the last state regulatory body to give its approval, having rejected an earlier version in June.

Key to the reorganization was shedding $1.7 billion of the debt that FairPoint took on when it bought the three states’ landline phone networks and phone network-based Internet service systems for $2.3 billion.

The deal closed on March 31, 2008, and within days, regulators were getting complaints from customers about not being able to make long distance calls, an online billing system going out of service and other problems.

The service troubles became acute at least once. on one day in September 2008, FairPoint network problems were blamed for 911 emergency calls from throughout northern Vermont failing to connect with public safety personnel for nearly two hours.

FairPoint officials have said they’ve been working to improve service and correct problems. Smith believes the company will be stronger now.

“Obviously, when you shed $1.7 billion in debt through negotiations with your senior creditors, you come away in a much stronger condition,” he said.

He said he also hoped Vermont lawmakers would follow the lead of Sen. Vincent Illuzzi, R-Vermont, who is pushing legislation that would relax some of the regulations under which FairPoint must operate.

Smith echoed arguments Illuzzi made earlier in the week, that the regulatory system was set up when a telephone monopoly operated in the state.

With competition from much less regulated wireless and cable companies, “We’re no longer the monopoly,” Smith said. “Nor are we the dominant carrier that we once were in this state. we just want a level playing field.”

FairPoint Communications gets green light from bankruptcy court is a post from: Chapter 7 Bankruptcy Information