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Karmaloop may be headed for bankruptcy

Bankruptcy petitions are filed by consumers and businesses for a number of financial reasons. Most of the time, bankruptcy is filed when debts are far too much for Iowa businesses or consumers to repay. Recently, it was reported that Karmaloop could be filing bankruptcy, and Dame Dash and Kanye West are reportedly interested in purchasing the company.

Karmaloop is a company that specializes in online sales for street wear and has had success throughout the years. According to recent reports, the company may be headed for bankruptcy, despite its attempts to avoid a filing. In an effort to save the company, the chief executive has approached a number of investors to attempt to work out the company's debt. If it unable to secure an investor, Karmaloop will be left holding the bag for $100 million in write downs.

Can student loans be discharged in personal bankruptcy?

Bankruptcy is often filed when consumers have no other options. Iowa consumers are usually faced with extreme financial circumstances, including credit card debt, medical bills and personal loans, which leads them to file for bankruptcy in the first place. One of the largest debts Iowa consumers have is student loans, but these cannot typically be discharged through personal bankruptcy.

Consumers who are drowning in student loans are limited on resources available to forgive their debts. This may come as a surprise since most other debts, including car loans and mortgage, can be filed under bankruptcy. The only loophole students have to discharge the loans through bankruptcy is to prove that paying it back would cause undue hardship.

STRENGTHENING PROTECTIONS FOR STUDENT LOAN BORROWERS

Over 40 million Americans have student loans and the average debt amount is $28,000. On March 10, 2015, President Obama proposed a new Student Loan Bill of Rights designed to make college more accessible and the experience of paying for higher education easier.

Dune Energy files Chapter 11 bankruptcy

An oil and gas company, Dune Energy, has filed for bankruptcy. Iowa blog readers may be interested in learning about this bankruptcy filing, which came after a series of declining oil prices and an unsuccessful merger with Eos Petro Inc. Reportedly, Dune Energy's revenue dropped at their two locations, and Eos decided to back out of the merger deal in the recent weeks due to lack of funding.

In 2014, the oil prices dropped, and energy companies have been struggling with less fuel demand. In addition, drillers and pipemakers have also been negatively affected, including Cal Dive, which filed Chapter 11 bankruptcy in the recent month. Dune is expected to ask for court approval to sell off assets in June. The company's assets are reported to be $229.5 million with a debt of $144.2 million.

Lifestyle Lift contemplates bankruptcy

There are many reasons why consumers or businesses file for bankruptcy. While the thought of bankruptcy can seem frightening for many in Iowa, it can have long-term benefits by not allowing debts to linger and by responsibly confronting ongoing financial issues. Lifestyle Lift, a cosmetic surgery company, is reportedly considering filing for bankruptcy.

Lifestyle Lift offers customers one-hour procedures that can apparently erase certain flaws, including sagging skin, wrinkles and frown lines. Customers may have seen infomercials that advertised facelifts that are not as invasive. With Lifestyle Lift, doctors only use local anesthesia, and customers benefit from shorter recovery times.  However, reports indicate that the company shut its doors at 40 locations and is possibly filing for bankruptcy.

Consumers have more credit card debt than savings

After being unemployed or hospitalized for quite some time, a number of consumers are forced to use their savings. When their savings are not enough, they may start building up credit card debt. A survey conducted by Bankrate revealed that 37 percent of consumers in Iowa and throughout the country have credit card debt that is more than their savings.

The survey was conducted on over 1,000 participants, and Bankrate's chief financial analyst stated that most of them have lack of savings and barely any available credit on cards. This ends up becoming an issue since emergencies can occur frequently and when consumers least expect them. According to a survey conducted by American Express, it was revealed that 50 percent of Americans faced unexpected expenses in the past year. Out of those expenses, 46 percent was due to car issues and 44 percent was due to medical.

Family Christian Stores files bankruptcy

Struggling businesses can find it hard to pay debts, especially during tough economic times. A company that is in debt with multiple publishers has filed for bankruptcy. Companies in Iowa and throughout the country file bankruptcy for a number of reasons and this case is no exception.  According to reports, Family Christian Stores filed for Chapter 11 bankruptcy after losing a substantial amount in profits.

Family Christian Stores was founded back in 1931 and was formerly named Zondervan Publishing House. It is one of the largest Christian bookstore chains in the United States and sells Bibles and books. However, the company has found itself in debt to publishers, including Tyndale House and HarperCollins Christian Publishing. In spite of the bankruptcy filing, the company does not plan on terminating staff members or closing down any of its stores. Instead, the company plans to sell off assets during the bankruptcy proceedings.

Using debt consolidation for credit card debt

Understandably, facing an enormous debt situation is challenging. Iowa consumers often use credit cards to cover necessary items when they do not have cash on hand. Fortunately, debt consolidation can help to pay down their credit card debt, but consumers may also want to know the benefits and consequences.

Consolidation loans may be a good choice when consumers want to pay off their debts quickly. With this type of loan, consumers will be given a certain amount of time to pay off the debt since they will not be paying just the monthly minimum on their cards. Consolidating debt can also be beneficial for those who want to lower interest rates and streamline payments into one monthly bill.

RadioShack filing Chapter 11 bankruptcy

When businesses see their profits shrinking due to a changing market and increased competition, bankruptcy may be the best choice for those businesses. RadioShack, a popular retail chain with stores in Iowa and all across the country, is headed toward bankruptcy. Reports suggest that the bankruptcy filing could occur very soon.

RadioShack is expected to close down almost half of its stores. The majority of the remaining stores will be operated in a partnership with another popular retailer, Sprint. RadioShack is filing a Chapter 11 bankruptcy, and, under the filing, Sprint is expected to partner with the company at nearly 2,000 locations. In addition, the stores' branding will reflect both Sprint and RadioShack.

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