Bankruptcy Law Blog

Harrisburg, Pennsylvania is in big financial trouble.  In fact, the state’s capital city may file for Chapter 9 bankruptcy.  A few weeks ago, an elite New York firm even agreed to take the case pro bono, asserting that the situation fits with the firm’s tradition of doing challenging pro bono work.  Just as likely, this will be a high profile case that receives a lot of news coverage.

Harrisburg’s financial problems stem from the unsuccessful revamp of an incinerator that has left the city debt-ridden.  Despite issues from the onset of …(read more)

Once upon a time, entering one’s senior years meant moving to Florida or some other warm locale, having the time to indulge in leisure activities, and spoiling the grandkids when they came to visit.  However, today’s poor economy and higher cost of living are tarnishing many seniors’ golden years.  In fact, in several states, senior citizens are the fastest growing segment of people filing for bankruptcy.

Many factors have contributed to this disturbing trend, such as rising inflation.  Inflation impacts everyone, but ideally, salaries increase according to the rising cost of …(read more)

Based on data found a recent piece in the New York Times, of all the states struggling amid the so-called “great recession,” there may be none suffering worse than Nevada.  For a state dependent on tourism – and the revenue it brings – the economic downturn has been especially devastating.  Discretionary spending such as “recreational travel” has decreased dramatically.  The resulting lack of spending on casinos, hotels, and other venues has led to the worst unemployment rates in the country.  While national rates have remained steady at 9.6%, Nevada’s unemployment …(read more)

A Mississippi couple going through bankruptcy proceedings has filed suit against one of the largest mortgage-loan and foreclosure providers in the United States, Lender Processing Services (LPS), and the technology firm and foreclosure law firm that it works with when processing foreclosures.  The couple alleges that the companies illegally shared fees for client referrals, commonly known as “fee-splitting.”

According to the lawsuit, fee-splitting among the technology firms and the law firm is improper because amounts designated as legal fees are being shared with companies that aren’t licensed to practice law.  As …(read more)