Posted by Joseph Racioppi February 07, 2008 8:24PM

I can see it now. Whoever is Governor of New Jersey five-ten years from now will say:
“Gee folks, although I promised to cut taxes, things are far worse than I originally thought. I mean, my predecessors really screwed up. No, I mean it, they spent our state into oblivion. Even a huge tax increase and massive toll hikes can’t get us out of this hole.”

An individual or business who declares bankruptcy reaches a point where they realize the situation is hopeless and no amount of borrowing or creative accounting can avoid the inevitable. I don’t recall a State going bankrupt but I do remember in the 90′s that Orange County California declared bankruptcy. They seem to have come out of it OK.

Yes, it would be embarrassing and shameful but we Jerseyans are used to that. The politicians who got us to this point should certainly be embarrassed and ashamed of what they have done with our money, with their reckless, irresponsible, out of control spending.

Bankruptcy of course has its purpose. Very simply, it gives the debtor a fresh start. The financial state of our state appears very close to “the point of no return”. How many billions of unfunded liabilities are there? And the plan is to borrow more to pay down the debt?

Click here to read the rest of this bankruptcy article

Whether you are looking for a Bradenton bankruptcy lawyer, or your simply looking for some bankruptcy information, this should help you.

Here is some basic advice about spending money.

1. Don’t spend more than you have. This sounds like common sense, but it’s very easy to begin spending more than you earn, and debt really adds up quickly.

2. Don’t get into “bad debt”. This includes credit card debt and car payments…etc Normally you’ll pay out the nose for these types of services. It’s not uncommon to see credit card financing at 18%

Hopefully these basic guidelines helped you. If you’re in need of a Sarasota bankruptcy attorney, do your research. Find someone who will help you get back on your feet.

In mid-December 2007, Central Illinois Energy, a cooperative formed by 260 farmers and local investors who spent $130 million to build an ethanol plant near Canton, Ill., threw in the towel when they learned they’d lost their money—about one month shy of distilling their corn. Plant construction had mushroomed from its $40 million initial proposal in 2001, in part due to project additions, engineering delays and financing hurdles.

Read the rest of this startup bankruptcy article here

Whether you are a Sarasota bankruptcy attorney or simply a consumer, this is a clear warning of the times to come.

A boom in the use of derivatives is giving creditors strong incentives to push troubled companies into bankruptcy rather than help rescue them, according to new research and industry experts.

A study by academics Henry Hu and Bernard Black concludes that, thanks to explosive growth in credit derivatives, debt-holders such as banks and hedge funds have often more to gain if companies fail than if they survive. The study suggests this development could endanger the stability of the financial system.

The findings highlight a crucial problem in corporate restructuring when more and more companies are facing financial difficulties as a result of the credit crunch and US economic slowdown. According to the research and industry practitioners, creditors have a strong interest in voting against a restructuring plan if they have bought credit or loan default swaps, which trigger payments when a company fails.

“Investors now accumulate positions in a company by targeting layers of debt or multiple layers of debt,” said Michael Reilly of the financing restructuring practice at Bingham McCutchen.

What does this mean for you in Sarasota?

Be smart, bankruptcy isn’t for everyone. Contact a bankruptcy attorney in Sarasota that can help you understand your options.

Please read the rest of this article for Sarasota bankruptcy consumers here

While this not always the case, this is what happens most of the time.

If you can pay your bills, you will have a difficult time filing for bankruptcy. We do not recommend even considering bankruptcy unless you’ve been able to speak with a credit counselor and a Sarasota bankruptcy lawyer.

They will be able to sort through this legal jungle and get you back on the path to recovery.

This is not legal advice.

Here are the approximate costs for Bankruptcy:

• Chapter 7 Filing Fee: $299

  This fees covers the filing fee for your bankruptcy case. Make sure you keep in mind that there may be additional costs associated with your filling fee such as attorneys or lawyers fees.

• Chapter 13 Filing Fee: $274

  If you want to keep your assets then this may be for you. Please keep in mind that this may or may not include the lawyers fees.

• Conversion Fee: $15

  If you get squeezed and you need to change from Chapter 13 to Chapter 7, this may be for you.

• Amendment Fee: $26 per amendment

  Let’s say you move or change your phone number, this $26 charge may be added to your initial filing fee.

Please keep in mind that these fees are not lawyers fees, therefore there may more costs associated with filing for bankruptcy.

Sometimes a debt consolidation company will discount or reduce the overall amount of the loan because they don’t want to risk losing the entire sum if you go into bankruptcy. A smart debtor can look for such savings.

This is most advantages with credit card debt because credit cards carry a very high interest rate; usually around 18%. If you have a home or car you may be able to use them as collateral when negotiating. While this is common, this isn’t always an option.
The bottom line is, ask a bankruptcy attorney in Sarasota if this is a viable option for you. They will know how to effectively help you get the most out of your situation.

When you are involved in Chapter 9 bankruptcy, you are likely going to refinance some of your debt because you really aren’t going to “go out of business”.

The best way to avoid Chapter 9 is to pay your bills on time. If you get behind, ask for help, do a fund raiser, get some cash flow, talk to your accountant.

Remember you’re only eligible if you are a municipality. If you’re a business or an individual, you can’t file for this type of bankruptcy.

If you want more information on this type or other forms of bankruptcy, our government has some great information on their website. Check it out today.