New York residents may have heard that actress Kelly Rutherford filed for Chapter 7 bankruptcy after an expensive divorce and child custody battle that cost her over $2 million in legal fees. In addition, her income had been drastically reduced because she was no longer making the $486,000 per month salary that she had been during her Gossip Girl TV series. Now her income is reported to be lower than $1300 month. The actress has two children, ages four and six, who are reported to be living with her ex-husband in Monaco. Traveling to and from Monaco has strained the actress’ finances, along with $35,000 she owes in back taxes and a $25,000 American Express bill. She has also borrowed several thousands of dollars from relatives and friends in order to ameliorate some of her financial challenges. Her only assets appear to include about $12,000 in the bank, $10,000 in furniture, and jewelry valued at approximately $1500. Chapter 7 bankruptcy should eliminate most debt, unless she has outstanding student loans and tax debt. Kelly Rutherford appeared to have more debt than she could afford to pay, especially because her divorce and custody battle were so costly. Since her income had… Continue reading
After a Rockland County divorce, many people find themselves struggling with debt and the aftermath of their decision for years to come. One of the biggest concerns many people have comes after they choose to file a Chapter 7 bankruptcy petition, especially if they have also held a mortgage in the past with their former spouse. It’s not unusual for one spouse to sign over rights to a deed during a divorce. This does not automatically let him or her off the hook when it comes to paying the debt, even if a divorce decree specifies a responsible party. The lender can ultimately hold both parties responsible for payment; however, the individual who no longer has an interest in the property does have some leverage at recouping his or her loss. That individual can use a Chapter 7 bankruptcy petition in order to find relief. It’s possible to file bankruptcy on a mortgage that was taken out with a former spouse without involving that person. If the debt is discharged in bankruptcy court, the petitioner will no longer be responsible for paying any share of delinquent mortgage payments. Even so, his or her name will remain on the note until… Continue reading
Due in part to a weakened economy and loss of market share to overseas competitors, Endicott Interconnect Technologies filed for Chapter 11 bankruptcy protection. Endicott Interconnect, which is headquartered in Endicott, N.Y., is a microelectronics company that manufactures printed circuit boards and advanced flip chip and wire bond semiconductor packages. Its clients include the United States Department of Defense, Cisco Systems Inc., IBM and Northrop Grumman Corp. In an attempt to solve its liquidity problems, Endicott Interconnect reduced its operating expenses, refinanced debt and laid off half of its workforce. The company eventually filed forChapter 11 protection when it became apparent that by Sept. 30, the company would run out of money and be forced to shut down operations. Endicott Interconnect claims debt in excess of $85 million and assets of less than $50 million. Endicott Interconnect is also being sued for $11.5 million in damages arising out of a breach of contract claim. In its bankruptcy filing, Endicott Interconnect cites overseas competition and reduced federal spending as the reason for its financial problems. In fact, despite a 28 percent increase in production of printed circuit boards worldwide, the number of North American manufacturers of these circuit boards fell 40… Continue reading
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