The team here at the Law Offices of John T. Orcutt is certainly qualified to help you put things in perspective and as smoothly as possible, help you through the tough financial times. Nevertheless, the impact of bankruptcy can be quite emotional, regardless of how professionally it is handled. Thus, we hope it helps you to read a little about some of the more interesting stories happening in the world of bankruptcy today. Here's a brief recap:
- From Wall Street to Main Street
- Even in Hollywood
We all like to know just how similar we are to those who live in Hollywood. Well, you can add "financial difficulty" to the list of things a lot of us have in common with actors and actresses. Last week, one of the Baldwin boys, Steven, filed bankruptcy in New York, citing well over a million dollars in debt. Despite denials to the contrary, it was reported that Baldwin was going to auction his house in order to pay off its mortgage. The actor stated he is simply renegotiating the mortgage with his lender. According to documents filed, credit card debt is also an issue.
Not far from Louisville, KY in southern Indiana, the town of Georgetown has decided to file bankruptcy, sparking a debate in the state capital about a municipality's ability to seek legal protection from debt. Apparently, a 1994 update to the federal bankruptcy code granted authority to state governments to decide whether or not individual cities and towns can file bankruptcy. Town executives see no other way to pay its debt, a large portion of which is attributed to an overdue sewage treatment facility. An attorney for Georgetown said that the community passed an ordinance that would grant itself authority to declare bankruptcy under the Home Rule Act, an Indiana law that grants local governments the ability to perform any legislative action not specifically prohibited by the state. Naturally, attorneys for the state are countering with the notion that federal law trumps the Home Rule Act.
Municipal bankruptcies are not very common, despite the substantial number of designated local governments throughout the country. However, not unlike personal bankruptcies, the number of community governments filing for protection spiked in 2005 at 11.
We hope this brief foray into the bankruptcy news arena helps you better grasp just how common bankruptcy is across the country. To that end, always remember that you are not alone in this fight and that others, even celebrities and entire towns, have the same questions, concerns and worries about money that you do.