Category Archives: Bankruptcy News

Money maven Clark Howard has just posted an interesting article on the return of debtor’s prison to some states. Howard writes that “the Wall Street Journal reports that more than one-third of U.S. states allow borrowers who can’t pay a debt to be jailed. Capital One is among the companies having people locked up for […]

It is unclear as of this writing whether the federal government will really shut down on April 8th or not, but even it does, the bankruptcy court system, which is part of the federal judiciary, is expected to stay open for business. Bankruptcy courts are funded in part by fees (if you’ve already filed your […]

The bankruptcy rumor mill is back in high gear again, with today’s newsbeing that Sbarro’s franchise chain, with their ubiquitous sandwich and pizza outlets in the Northeast and Midwest, will be filing for bankruptcy protection shortly. The chain has $300 million in debt, mostly bonds, and has been in default since February. Senior lenders have […]

PeptiImmune, Inc., a Massachusetts biotech concern, has had to declare Chapter 7 bankruptcy. The Somerville company was trying to develop and market long-lasting drugs to treat multiple sclerosis. Unfortunately, they had stiff competition from generic version of MS drugs that are about to hit the market. When a corporation files for Chapter 7, it involved […]

How do you know that you have just suffered the worst day ever in bankruptcy court? It’s probably when the judge tells you you that despite your bankruptcy filing, you still have to pay your attorney fees to your ex-wife’s divorce lawyer! That was the sad fate of the debtor in the Johnson case, recently […]

A Massachusetts lawyer will serve three years in federal prison for bankruptcy and tax fraud, after being sentenced in federal court yesterday. The Boston Globe reported that James Gregson received a thirty six month sentence in a case that had its roots in winning lottery tickets. Gregson, who had a law practice in Saugus, purchased […]

The Borders Group book and music store chain, which filed for bankruptcy in February, is trimming more stores to try to stay alive. Twenty-eight more outlets are now slated for closure, including two in Massachusetts. But for now, the Borders at the Loop in Methuen and the smaller outlet at the Mall at Rockingham Park […]

I’ve written several posts here on how tax returns are handled in a consumer bankruptcy case, but now there is a new twist, at least for married couples living in Massachusetts. Got a tax refund coming? If you are married, think the bankruptcy court will divide it 50-50% if one spouse files for bankruptcy? Well, […]

The Chapter 11 bankruptcy filing of the Blockbuster video store chain, reported here last September, has hit North Andover. The Blockbuster store on Route 114 near Royal Crest apartments in North Andover is one of those that will be closing soon due to the bankruptcy. Right now they are having a final closeout sale, if […]

Even though same-sex unions have been common in Massachusetts and New Hampshire for a while now, the “gay married” crowd has never been allowed to file joint bankruptcies, which often costs them some serious “extra” filing fees and attorney fees. The reason? Bankruptcy is a federal court, and the federal Defense of Marriage Act instructs […]