Thursday, December 29, 2011

American Airlines Files Chapter 11- No Fear of Flying

As if it isn’t bad enough traveling during the holiday season, with higher delays, severe weather, getting bumped,  and everyone’s biggest fear lost luggage—American Airline customers have bigger things to worry about.

The last major U.S. airline finally filed for Chapter 11 bankruptcy.  It came as no surprise that American Airlines who have avoided bankruptcy for over the past decade finally made a gap too big to fix—depressing news for the carriers, employees, shareholders and American customers.   Should customers be worried about what will happen next as the airline company travels down the road of Chapter 11 bankruptcies?

For the time being, everything—meaning tickets, reservations and mileage programs—will be honored.  According to a statement on the American Airlines website that reads “American Airlines is flying normal schedules and conducting business as usual worldwide. Additional information about the Chapter 11 reorganization is available at www.aa.com/restructuring.”

In histories past all major airlines have gone through bankruptcy within the last decade—United, Delta, US Airways, etc.  All were able to bounce back. Thomas Horton the successor to Gerard Arpey , AA’s chairman and  CEO who is retiring, claims that the airline was forced into bankruptcy due to cost disadvantages it faced with its competitors.

American has been seen as the weakest of all the major airlines for some time now.  Southwest is the only major U.S. airline that has not filed for bankruptcy.  Judging by previous bankrupt airlines we can predict that American Airlines will find its way back.  In the airline business customer loyalty is its most costly commodity.  American Airlines does not want to lose any of its fans or customers, so coupled with their cash reserves, funds from ongoing ticket sales and a normal routine the airline should be making a strong turn around.  The airline is trying to avoid a debtor-in-possession loan that most companies typically require to function under Chapter 11.

So if you are an American flier, you have nothing to worry about just as long as you don’t own any American Airline stock.

For information on filing for Chapter 7 or Chapter 13 personal bankruptcy protection, please call Macey Bankruptcy Law toll-free today at 800-260-1402 to speak with a qualified and compassionate bankruptcy attorney or log onto www.maceybankruptcylaw.com. In the last three years, we have helped over 100,000 people who, like you, have complicated financial and legal encumbrances. We may be able to help you, too.

Collection Agencies May Soon be Allowed to Call Your Cell Phone

It’s possible that debt collection agencies will soon be legally allowed to use so-called “robo-calls” to dial your cell phone, a practice that is currently banned. Both debt collectors and telemarketers will be wasting your minutes when they call you on your mobile devices if a bill passes that is now in the U.S. House of Representatives.

The proposed Mobile Informational Call Act would end the 1991 Telephone Consumer Protection Act, which stops automatic calls for informational purposes. Senator Charles Schumer (D-NY), is against this proposed new bill that could affect 83% of cell phone owners.

Those in favor of the new bill opine that it would make it easier for companies to pass along such important information to customers as flight cancellations, data breaches, account changes or fraud alerts. Supporters also say that most cell phone users have flat-rate plans. (I have not done research to know if this is true or not).
According to an article on www.abclocal.go.com by Carolina Leid, harassing calls by debt collection agencies are the source of more complaints to the FTC than any other industry. This bill would make it legal to have robo-harassment spill over to your cell phones, whether you are at work, at the park with your family or even when driving your car (hands-free, of course). At Macey Bankruptcy Law, we think that this is a very bad idea.

If you receive a call to your home or cell phone from a debt collection agency pestering you for money, demand proof that you do indeed owe the debt. If you are still unsure how to proceed, call the skilled bankruptcy attorneys from Macey Bankruptcy Law six days a week and evenings toll-free at 1-800-260-1402 for your initial complimentary consultation. We will take you through all necessary steps to protect your finances and your credit. For more information, log onto our new user-friendly and interactive site www.maceybankruptcylaw.com. Do not let aggressive debt collectors bully you. Filing bankruptcy stops those frightening calls, even to your mobile phones.

GSA Support Financial Responsibility (Not Just Cookies)

The Girls Scouts of America (GSA), in an attempt to teach financial literacy to young girls, is adding four new finance-oriented badges that scouts can earn. The insignia are: ‘good credit’, ‘money manager’, ‘budgeting’ and ‘financing my future’.

In an article on www.credit.com, Jamie Pietras reports that the scouts need to complete a five-step process to earn the citations. For example, she writes, “a scout may meet with a loan officer at a bank to learn more about using debt wisely”.

Michelle Singletary, in her column on www.washingtonpost.com, interviewed Michelle Tompkins, a Girl Scouts USA spokesperson who said, “’ Girls really want to feel financially independent. The effect of money on every level, it’s something so prevalent right now in families, in society.’”

The finance-oriented badges are among the 136 newly-designed patches; the first in 25 years. Ms Tompkins stated that although the new badges for financial efficacy are especially timely, she views them as an “extension of an ethos that has been in place since the 100-year-old organization began its cookie sales in the 1920′s”. She continued, “’We’ve always had girls getting hands-on business experience. Sound money management skills are a prerequisite for business and leadership success, aims Girl Scouts USA has always encouraged.

To earn these specialty-badges, the girls must complete a program to demonstrate a basic proficiency in the respective topic. Scouts may meet with a loan officer at a bank to learn about relevant issues including finding out about credit reports and credit scores. They may also “plot out the kind of [adult] life they wish to lead; job, home, philanthropy, and determine the salary they would need to tie those things together”.

The Girl Scouts are seeking volunteers with financial management experience who would be interested in helping the organization. Check out www.girlscouts.org for more info. Sounds like a great idea to us!
If you need help straightening out your financial future and are seriously considering filing for Chapter 7 or Chapter 13 bankruptcy, you need a knowledgeable and experienced bankruptcy attorney from Macey Bankruptcy Law at your side. Bankruptcy is a complicated legal matter requiring the professional services of a dedicated and compassionate bankruptcy attorney. Log onto our new, easy-to-navigate

www.maceybankruptcylaw.com for important information on how filing Chapter 13 or Chapter 7 personal bankruptcy can lead to a more secure financial future for you and your family. To set up a complimentary initial phone consultation with a qualified staff member from Macey Bankruptcy Law, call us toll-free at 800-260-1402 Monday thru Saturday and evenings. We want to help.

True or False – Some Bankruptcy Q & A

In these difficult economic times, with unemployment still hovering just under 9%, people at all levels of the economic ladder across the U.S. are considering Chapter 13 or Chapter 7 bankruptcy protection. While bankruptcy may be an excellent option for you to extricate yourself from your financial miasma, do not consider filing bankruptcy without the services of an experienced and knowledgeable bankruptcy attorney from Macey Bankruptcy Law at your side. For a very reasonable fee, lower than many other firms, we will take you from filing to completion of your case. Call us toll-free at 1-800-260-1402 for your initial, free mini-consultation with a caring and skilled member of our staff.

Following are a few myths about bankruptcy:

•    When I transfer my property to family members or friends, can I get it back when I am done with bankruptcy?

Don’t do this! If you purposely transfer anything you own, your home, vehicles, stocks—anything, you will be perpetrating fraud. You may very well be exposing your relatives to a lawsuit in your bankruptcy case. Furthermore, the bankruptcy trustee can “look back” several years, depending on the state, after any property was transferred. If you absolutely must sell your property, make sure that you receive fair market value for it and be sure to check with your attorney from Macey Bankruptcy Law should you decide to do so.
•    Should I use my credit card’s available balance before I file bankruptcy since it will be discharged anyway?

Your entire credit card balance may not be eliminated by your Chapter 13 or Chapter 7 bankruptcy filing. If you use your credit cards with no intent or ability to pay the balance, if you are purchasing luxury items or if you have transferred the balance, you may still be responsible for paying the entire credit card bill. Again, this could be fraud and can lead to the debt being non-dischargeable. A better idea is to stop using your credit cards and call your Macey Bankruptcy Law attorney for reliable advice at a reasonable price.

•    Should I cash in my IRA and 401(k) to avoid filing bankruptcy?

This is probably not a good idea. Your IRA and 401(k) plans are among the most important items to be protected in your bankruptcy proceeding. Normally, even if you emerge with nothing else in your bankruptcy, your retirement accounts are protected. Your 401(k) plan and most other retirement plans are usually exempt from creditors, depending on your state. It is far better financial planning to eliminate debts you can’t afford to pay through bankruptcy, which would allow you to preserve your retirement assets.

•    Should I stop paying my mortgage and other secured creditors since I am filing bankruptcy?

It is probably a bad idea to stop paying your secured creditors, such as your mortgage and car loans, since your debt to these types of creditors must be paid to keep the property. In a Chapter 7, the debt will normally survive bankruptcy; the creditor can take the secured property or you will have to “reaffirm” the debt and continue paying according to the original terms of the secured contract. In a Chapter 13, you will generally need to pay the back-due amount through your court-approved repayment plan and continue paying the amounts due in the future to keep the property. These are very complicated issues. It is vital that you speak with your bankruptcy attorney from Macey Bankruptcy Law. They are familiar with all aspects of Chapter 7 and Chapter bankruptcy law and will advise you accordingly. Please do not make any decisions regarding your bankruptcy without the advice of your attorney.

•    If I file for bankruptcy, will my child support and/or alimony payments be eliminated?

No. Whether you file a Chapter 7 or a Chapter 13 bankruptcy, you must still pay your child support and/or alimony obligations. Your children are not disappearing and neither are your obligations to take care of them. In addition, in a Chapter 13 if you are not up-to-date on your alimony or child support obligations you will not receive a discharge from any of your debts. Again, do not proceed without the solid and compassionate advice of your Macey Bankruptcy Law attorney.

Whatever the reason you are experiencing crushing debt; unemployment, underemployment, divorce or medical emergencies, the skilled bankruptcy attorneys from Macey Bankruptcy Law may be able to help you like we have helped hundreds of thousands of other Americans get relief from financial difficulties. We have over 100 law offices across the United States so we have the collective knowledge, experience and vitality to get you the help you need to file your Chapter 13 or Chapter 7 bankruptcy. We answer our phones Monday thru Saturday and Saturday so you can talk to a skilled representative when you want to, not just 9-5! Please check out our new, easy-to-navigate website www.maceybankruptcylaw.com. The site is user-friendly, interactive and will answer many of the questions you have about filing your Chapter 13 or Chapter 7 personal bankruptcy.