Los Angeles residents are well aware that the economy is still in an uncertain period, despite recent signs that things may be turning around. For every bit of good news regarding increased job creation and decreasing unemployment rates, there is a fiscal cliff or debt ceiling debate that sends the stock markets tumbling, placing financial strain on hard-working people all across the country.
As we have outlined before — and as many media outlets have noted — college students are struggling to handle their debt. It’s not entirely their fault, mind you. Rising tuition rates and a tough job market make it very difficult for a graduating student to pay off their loan debt. Declaring for bankruptcy can help these graduates, allowing them to clear other debts to give them some financial breathing room, which can be used to focus on paying off their student loan debt.
It is a moment that every in-debt person fears: your cellphone rings and the number is unrecognizable. What’s the most likely reason for the call? Sure, it could be a distant family member — or maybe the job offer you have always wanted is just on the other end of the line. But the reason you are receiving this call is almost certainly because a debt collector is trying to garner the funds you owe.
If administered correctly, a business or commercial reorganization through bankruptcy can be in some cases a boon for both debtors and creditors alike. However, these sorts of reorganizations have to be handled delicately as any objections by creditors can jeopardize the entire bankruptcy filing.
One bankruptcy concerning a California-based publisher has now been placed upon hold because lenders felt the reorganization plan “was orchestrated to benefit the company’s newest executives and their friends at a financial firm” retained to sell the publishing company. The lenders in question have apparently loaned the company as much as $41 million, which makes up a substantial part of the $100 million in debt claimed.