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Houston Bankruptcy Law Blog

Ledgemont Capital files for Chapter 7 bankruptcy

In today's unpredictable and uncertain economic environment, financial firms and banks may end up running into financial challenges. Although there are many things firms and banks can do to minimize these challenges, sometimes a firm's liabilities become too much of a burden in Texas or in any other state. One investment bank, Ledgemont Capital Group LLC, ran into this problem, which resulted in the bank filing for a Chapter 7 bankruptcy.

The boutique banking firm's bankruptcy petition lists anywhere from $10 million to $50 million in total assets. The bankruptcy trustee assigned to the case will now be in charge of liquidating all of Ledgemont's assets in order to repay creditors. According to the bankruptcy petition, the bank has liabilities ranging anywhere from $1 million to $10 million total.

Tips to avoid overwhelming debt from credit cards in Texas

Although there have recently been some reports indicating a potential economic recovery underway, there are still many signs that the economy is still fragile. Ever since the recession, consumers in Texas and elsewhere have been cautious about racking up any debt on their credit cards. However, many are still unaware of some of the basics regarding how credit cards work, which could cause them to face overwhelming debt problems.

One thing that consumers may benefit from being aware of is that borrowing money from credit card companies is not like borrowing money from a friend or family member. Friends and family may not mind if one pays them back a little bit late. However, a credit card company is unforgiving. The credit card company will charge significant fees for late payments, while also penalizing late payments with increased interest rates.

Senator attempts to address overwhelming debt from medical bills

Health is one of the most important aspects of life for a person. Despite this, illness is a fact of life and just about everybody will experience some type of illness which will require medical treatment. Unfortunately, this treatment is not free and could result in overwhelming debt for consumers in Texas and elsewhere. One senator has recently learned that hospitals may be charging exorbitant fees for the services rendered and has decided to take action regarding this issue.

The senator first realized the extent of the problem when he read a Time Magazine article published in March addressing the issue. The article claimed that hospitals mark-up their products and services several times higher than their real costs to the hospitals. One example which the article mentioned was one hospital's costs for laboratory work for patients in 2010. This work cost the hospital $27.5 million however the hospital charged their patients $293.2 million.

Alternative medical facilities can help avoid overwhelming debt

Nobody wants to spend more money than needed when obtaining necessary medical treatment. Most people in Texas are wary about running up large medical bills because these can quickly turn into an overwhelming debt problem. Luckily, however, there are a variety of ways that allow people to minimize medical bills while still obtaining the required medical treatment.

One important step in saving money on medical bills is to obtain quotes from different providers for the desired medical procedure. Many times this can save a person a significant amount of money. In one instance, a patient was quoted $2,400 for an MRI on his neck from a local hospital. However, he was able to find an alternate medical provider who offered to perform the MRI for only $350.

Delinquencies drop but overwhelming debt is still a possibility

The recent recession has caused many people to reformulate how they think about their relationship to debt. Prior to the recession, consumers in Texas and elsewhere had accumulated large amounts of credit card bills. This caused overwhelming debt, which turned into a sharp rise in delinquencies on credit card accounts. However, after the recession, consumer credit card debt has dropped dramatically for a variety of reasons.

One reason which credit card delinquencies have declined is that banks have made it more difficult for consumers to qualify for a line of credit or a loan. However, some experts believe that as the economy begins to recover, the banks will eventually resume lending in order to appease investors and keep their stock prices high. This will result in a loosening of lending standards, according to some financial experts and economists.

Fewer college students with credit cards, less overwhelming debt

For many people, going to college for the first time meant the first time living independently away from parents and family. It also once meant obtaining the first credit card, which many looked at as another ritual of reaching adulthood. However, following the recent recession in Texas and the rest of the U.S., the number of college students carrying credit cards has declined, which could help in curbing overwhelming debt among college students.

Along with the recent recession, a 2009 law which tightened regulations on credit card companies also contributed to the decline in college students signing up for credit cards. The law increased monitoring and disclosure requirements for credit card companies. It also tightened regulations on the ability of credit card companies to offer instant approval of cards to younger people. Now, applicants are required to have a history of independent income or a co-signor prior to being able to obtain a credit card.

Common Sense Media files for Chapter 7 bankruptcy

The business world can be highly profitable and lucrative if one is savvy and makes the right decisions. However, every entrepreneur in Texas and elsewhere that goes into business will take on a certain amount of risk, depending upon the type of business. There are a variety of factors which could cause a business to hit hard times. Unfortunately, one online advertising business recently found this out when it was forced to file for a Chapter 7 bankruptcy.

Common Sense Media petitioned for bankruptcy protection in early March, planning for liquidation of its assets due to overwhelming debt. The petition listed various well-known news websites and other media outlets. Nearly 50 creditors were listed in the bankruptcy petition. The company's publisher and its managing director were also listed as creditors in the bankruptcy petition as well.

Bankruptcy provides quick and permanent relief from medical bills

The numbers of consumers burdened with unmanageable medical debt are growing. People try numerous ways to resolve the problem but many find themselves unable to find a way out that will not strap them even further. Amazingly, people seem to be largely unaware that there is a governmental program that will quickly and totally wipe out consumer medical bills and credit card debt. In Texas and nationwide, the remedy is a consumer bankruptcy filing known as a Chapter 7.

Recently, a couple reported that they had about $65,000 in credit card debt. They amassed the debt over a period of years paying for medical expenses for their severely ill child. Some of the debt also built up paying mortgage payments and utility bills due to the high medical expenses. What isn't generally known is that many people who have runaway medical expenses are actually covered by medical insurance! This couple's situation of overwhelming debt is indicative of so many similar individuals and families who face chronic illness.

Creditors push for involuntary bankruptcy of defunct company

In many ways, companies are just like individual people when it comes to debt and finances. If a company in Texas or elsewhere owes money to creditors, it is obligated to repay money borrowed. A group of hedge funds led by SPQR Capital is currently arguing in a bankruptcy proceeding that a business which once existed, but is no longer in existence, is still obligated to repay debts owed to creditors.

SPQR Capital has recently filed a petition asking a bankruptcy judge to deny a petition by a financing vehicle of TPG Capital. The petition filed by the arm of TPG Capital is asking to have an involuntary Chapter 7 bankruptcy petition dismissed. The group of creditors filed the petition against TPG Troy LLC in December 2012.

Texas congressman Ruben Hinojosa completes personal bankruptcy

Just about everybody feels some sense of duty to their family. Those who own and operate a family business that has been passed down through generations may feel a duty to do what they can to keep those businesses alive, even at the cost of their own financial well-being. One Texas congressman, Ruben Hinojosa, may have done this. That may have been one reason why he sought the protection of personal bankruptcy to address his financial concerns in a responsible fashion.

Hinojosa says that the main reason he was forced to file bankruptcy was a loan he had secured to help his family's business, which had filed for business bankruptcy in 2008. The lawmaker decided to petition for bankruptcy in 2010 and has recently emerged from the bankruptcy process. The congressman reportedly owed $2.9 million in debt at the time of his filing. Wells Fargo Bank claimed $2.6 million of this debt owed by the petitioner.

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