Bankruptcy doesn't have to be something bad.
It can actually be the start of something good.
Your situation is unique, and it's personal.
Your attorney should be as well.

FDIC Regulators Close Nova Financial Bank Unit

Regulators with the Federal Deposit Insurance Corp. closed a Nova Bank unit on Oct. 26 and as a result of this closure, Nova Financial Holdings Inc. decided to file for Chapter 7 bankruptcy.

Nova announced on Oct. 30 that their board decided that liquidating their assets in a bankruptcy court will be the best options for them. The Chapter 7 bankruptcy petition was filed in the U.S. Bankruptcy Court of Philadelphia.

After the closure of the banking unit, the FDIC attempted to enlist another banking institute to receive the unit, but they were unable to. This means that the FDIC is now the receiver and that the closure may cost them more than $90 million.

Despite the bank’s progress to increase capital under a plan put in motion by the Federal Reserve Bank of Philadelphia in 2010, lawsuits filed by unhappy shareholders has made the situation more difficult.

The company attempted to settle with shareholders, but most of the settlement efforts were rejected. Other discussions on how to raise capital for the company were also rejected by interest groups.

If your business is struggling with debt, no matter the situation, you should discuss your options with experienced and knowledgeable representation. Contact the bankruptcy attorney Paula Greenway by calling (205) 324-4000 today.

Chapter 7 Bankruptcy and the Means Test

Determining  whether or not to file for bankruptcy can be a difficult and drawn out decision. There are several factors that someone should consider when making this decision, and experienced professionals should be on hand to assist in the process. The two main types of bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Chapter 7 bankruptcy can allow an individual to dispose of their debt at a more rapid pace than Chapter 13 bankruptcy. Chapter 7 is a form of bankruptcy protection that is usually classified as liquidation bankruptcy. A person’s assets which are considered non-exempt will be sold, liquidated, and the profit from those sales will directly benefit creditors associated with the filing.

Assets are categorized as exempt and non-exempt items. Common items that are deemed exempt, which means they cannot be liquidated in the bankruptcy filing, include earned damages, cars, and clothing. Non-exempt items can include stocks, second vehicles, and cash, but these are ultimately determined by an appointed bankruptcy trustee.

If an individual determines that Chapter 7 bankruptcy protection is the right course for them, they must first pass the means test in order to be considered for this type of protection. If an individual earns an income that is considered to be lower than the median income of their state, then they do not have to pass the means test and can proceed with the Chapter 7 bankruptcy filing. All other individuals must pass this test before they can file.

The means test is a comparison test in some regards, as it compares an individual’s earned monthly income to the state’s average income. If the income is determined to be higher than the median, a person’s net income is then calculated. If the net income of an individual can be used to successfully pay off debt within the five year time frame associated with Chapter 13, then the individual is not allowed to file for Chapter 7 bankruptcy. If the net income could not complete this requirement, then the person filing will then be allowed to continue with the Chapter 7 bankruptcy filing.

Jefferson County Can No Longer Afford to Keep Hospital Open

Nearly a year ago, Jefferson County filed a $4.23 million bankruptcy case and now, they have claimed that they can no longer afford to keep a Birmingham hospital open. The hospital has 319 beds and offers in-patient services, but with only a few dozen patients a day, they cannot cover the losses that are associated with it.

The largest city in Jefferson County, Birmingham, asked the bankruptcy judge in the case to keep Cooper Green Mercy operating in full capacity. In order to solve this issue, the county has suggested that the emergency room be turned into a urgent care facility as well as provide care to other outpatient clinics.

Patients that visited the hospital would be sent to different hospitals. The Chapter 9 bankruptcy filing is protecting Jefferson County from any lawsuits that could spur from this. Officials with the bankruptcy case stated, “as long as the county pays, it is in compliance with law.”

Commissioners for the county approved a $205.2 million operating budget for the year. This number is $12 million less than what was approved in the fiscal year that ended September 30.

If you have been struggling with debt and want to get your finances in order, you need representation on your side that can help you with this process step-by-step. Contact the Birmingham bankruptcy lawyers at Greenway Bankruptcy Law, LLC today.

Alabama Foreclosures Drop in August, Increase in September

The rate of foreclosures in the Birmingham area declined in the month of August, according to a mortgage researcher. The data shows that in August, the rate of foreclosures was 1.62 percent. This percentage was down slightly from August 2011 when the rate of foreclosures in the metro Birmingham area was 1.69 percent.

Foreclosure activity across the state of Alabama was also on the decline during the month of August. The rate in 2011 was recorded at 1.48 percent, and this year the rate was determined to be 1.44 percent. Overall, the city of Birmingham had a lower rate of foreclosure when compared with the nation as a whole.

The rate of foreclosures in August throughout the United States was 3.35 percent. The month of September was a different story for the state of Alabama. A recent report revealed that the number of foreclosure filings in Alabama increased by more than 25 percent in September. There were 1,892 filings reported in September. A different trend was seen across the nation with filings declining during the same month.

Foreclosures can be complicated procedures. If you own a home in Alabama and may be facing foreclosure, you need experienced representation on your side to fight for your rights. Please contact the foreclosure defense attorneys of Greenway Bankruptcy Law, LLC by calling (205) 324-4000 today.

Birmingham produce company to pay creditors in bankruptcy ruling

A judge has issued a ruling in Birmingham-based Adams Produce’s Chapter 11 bankruptcy filing. Monday’s ruling states that Adams must pay its creditors a total exceeding $8 million.

Chapter 11 bankruptcyAdams Produce filed for bankruptcy in April of this year, prompting many of the company’s creditors to make claims on the Perishable Agricultural Commodities Act, which protects agricultural trade. Originally, more than 60 companies sought payments from Adams under the law. Many of them did not have valid claims or did not follow the law’s guidelines, so they were dropped from the action.

The remaining 48 companies were looking for a total of more than $10 million, but will have to settle for the judge’s ruling. For example, the company seeking the most money for its claims calculated it was owed $6.6 million, but chose to settle for $4.8 million.

Going through a large bankruptcy with several creditors demanding thousands of dollars from you is doubtlessly stressful, but the services of an experienced bankruptcy attorney can help you clearly understand where you are and where you need to go.

Michael Vick paying off creditors with NFL earnings

Michael Vick, a quarterback in the NFL, filed for bankruptcy protection in 2008, and has recently started paying off his numerous creditors the approximate $20 million that they are owed.

Vick spent two years in prison for the part he played in a dog fighting ring. When he was released, he accepted a restructuring plan in order to begin improving his financial situation. He signed a six-year, $100 million contract with the Philadelphia Eagles.

Of that contract, $40 million is guaranteed, which means that the creditors will begin receiving payments based on the yearly income that Vick will be bringing in. A representative for the creditors stated that they could all be paid off by 2014 if everything goes according to plan.

If you are considering filing for bankruptcy and have questions about the process, please contact the bankruptcy lawyers of Greenway Bankruptcy Law, LLC by calling (205) 324-4000 today.

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Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

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