Alex Wathen files his first document from an airplane in the air.

October 21, 2011 – Over Winston-Salem, North Carolina – On board AirTran Flight 168 from Atlanta to Reagan National Airport in Washington – Alex Wathen just e-filed his first document from an airborne airplane.  The document was a certificate of service for a rescheduled creditors meeting notice.  Alex used AirTran’s Go Go inflight wi-fi internet service which provide excellent connectivity and is also used by other airlines.  This post is also written and uploadd live from the same flight!

Harrisburg, Pennsylvania files Chapter 9 bankruptcy. Photo courtesy of Pollinator on Wikimedia Commons.

Harrisburg, Pennsylvania has filed Chapter 9 bankruptcy.  A firestorm seems to be brewing as the State of Pennsylvania has objected to the bankruptcy filing and apparently there are moves to pass legislation that would strip the city of its power to be a debtor in a Chapter 9 Municipal Bankruptcy.

The documents can be read here:

Docket Report – list of filed documents and case information.

 1 Chapter 9 Bankruptcy Petition for Harrisburg, Pennsylvania 

5 Third Circuit order designating Bankruptcy Judge to preside over Chapter 9 bankruptcy case of Harrisburg, PA 

15 State of Pennsylvania’s Objection to Bankruptcy filing of the City of Harrisburg under Bankruptcy Chapter 9 

Houston Bankruptcy Attorney Alex Wathen warns people about foreclosures and short sales as the mortgage lender often sends a Form 1099 making it a non-dischargeable debt.

The widespread practice of sending Form 1099 to people who have had a foreclosure or a short sale benefits the federal government in terms of tax revenue.  Now there are ways out of this such as filing for bankruptcy the same year as the foreclosure and in some other cases if you are insolvent you may get relief by filing a form with your tax return if you qualify, but the surest way to avoid it is bankruptcy.  Surely a lot of people do not know this and end up paying the IRS money needlessly.  Perhaps that is why Congress has not changed the tax laws to eliminate cancellation of debt as taxable income.  It may also be a reason why Congress has not taken action to stop foreclosures by allowing bankruptcy courts to modify people’s loans.  It is too bad that the federal government has no incentive to help people.

Houston Bankruptcy Attorney Alex Wathen handles tax issues frequently. Getting taxes discharged in bankruptcy is complicated and there are more twists than you think.

You thought Hurrican Ike was over with – wrong it is still affecting us.  Other than the thousands who are still fighting over insurance proceeds and trying to get their homes repaired, it still affects your taxes.

You have probably forgotten but if you took the October 15, 2008 extension for your 2007 taxes, then IRS automatically extended your extension until January 5, 2009, which means that if you want to get 2007 taxes discharged in a bankruptcy then, in addition to meeting the other requirements, you need to wait and file your bankruptcy until after January 5, 2012, I always advise people to wait a little longer if possible.  There are also other requirements such as when the return was actually filed and when the IRS assessed the taxes which are also traps.

Photo courtesy of Cliff1066 on Flickr.

Fast Company magazine has started a bankruptcy blog on its FastCompany.com website by Bankruptcy Attorney Alex Wathen. Photo courtesy of Roland Weber.

Fast Company Magazine’s website FastCompany.com as part of its FC Expert Blogger program has launched a bankruptcy blog by Bankruptcy Attorney Alex Wathen.  ”I am very excited to be onboard with a leading magazine such as Fast Company in this venture,” said Alex Wathen.  Fast Company chose Wathen in large part due to his knowledge and leadership in the bankruptcy community and the business sector.  The first article discusses trade credit.  Wathen will write about other hot topics in the bankruptcy arena.

This announcement comes at a busy time for Alex Wathen who was just named Appellate Lawyer of the Week by Texas Lawyer Magazine and the announcement by Celebrity Press of the publishing deal signed with Alex Wathen for the book Trendsetters.

Bankruptcy Attorney Alex Wathen becomes Top 10 Blogger at the National Bankruptcy Forum.

Alex Wathen having been an attorney active on the internet for over a decade has earned the distinction of being a Top 10 Blogger at the National Bankruptcy Forum.  Alex blogs about a variety of bankruptcy topics including developments with case law, frequent problems faced by consumers, and most distinguished is his reporting about high profile bankruptcy cases involving celebrities, politicians, and large corporations.  In a society where more people and organizations are experiencing financial difficulties, bankruptcy has become the national past time as the L.A. Dodgers is the latest baseball team to file for bankruptcy.  Alex is a great believer in the First Amendment and open public records and that is why he is fighting Congressman Ruben Hinojosa in court over the sealing of Congressman Hinojosa’s bankruptcy petition.

Congressman Ruben E Hinojosa fights to keep his bankruptcy petition sealed.

The appeal of the sealing of Congressman Ruben E. Hinojosa’s bankruptcy petition is taking a strange path through the federal court divisions of South Texas.  It started being assigned to Judge Janis Graham Jack of Corpus Christi.  It was then reassigned for unexplained reasons to Judge Randy Crane of McAllen which is Congressman Hinojosa’s home town.  Judge Crane then recused himself and it was reassigned to Chief Judge Ricardo Hinojosa also sitting in McAllen.  Judge Hinojosa who is most well known as the former Chair of the United States Sentencing Commission then recused himself.  The case was then reassigned to Judge Micaela of Laredo.  After touring the Southern part of the Southern District of Texas the case has hopefully now landed with a judge who can hear the appeal.

Read the recusal orders:

United States District Judge Randy Crane

Chief United States District Judge Ricardo Hinojosa

The map of the Congressman Hinojosa’s District also gives the reader an idea of how the appeal has traveled South Texas:

Congressman Ruben Hinojosa's District, the 15th of Texas.

Tarek ibn Ziyad Academy a charter school files for Chapter 7 bankruptcy. Dakota County Courthouse picture courtesy of Wikimedia Commons.

A Minnesota charter school has filed for Chapter 7 bankruptcy and sent its students elsewhere.  Usually charter schools just close down they do not file for bankruptcy according to the Minneapolis Star Tribune.

The schedules in this case raise a lot of suspicion because they list no assets at all, not a penny of cash or even an overdrawn bank account, no furniture, no books, no computers, no nothing.  The corprate resolution does list a website but the domain name is not listed in the assets under intellectual property.  The U.S. Trustee should look at this one.  Additional red flag is that the unanimous resolution by the board of directors is only signed by one person.  While this is not unusual for corporations that only have one director the resolution mentions several names yet only one signs.

Read the documents:

Docket Report

1 Petition and Schedules listing no assets.

3 Notice of Appearance of the Commissioner of the Minnesota Department of Education.

5 Unanimous resolution by board of directors only signed by one person – ask your bankruptcy attorney who needs to sign – it is usually everybody.

The Las Vegas Federal Court House.

The Bold and the Beautiful and the Bankrupt, soap opera star Tylo Hunter has filed bankruptcy in yet another celebrity bankruptcy case.  The Chapter 7 petition lists less than 50 creditors and $1 million to $5 million in debts as well as in assets.  It looks like she was in a hurry because she or her attorney accidentally listed the full account numbers in the creditor matrix rather than just the last four digits.  Debts listed include the American Arbitration Association,  Green Tree Servicing, Homecomings Financial, Innovative Artists Talent, and she appears to be listed as a guarantor of someone else’s account at Resnich Neuropsychiatric Hospital.  The creditor list is dominated by medical creditors.  Read the documents here:

Docket Report

1 Petition

3 Declaration for Schedules and Statements

5 Creditors Meeting Notice for August 3, 2011

Erie, Pennsylvania debt collector Michael J. Covatto who set up fake courtroom to coerce people to pay has filed Chapter 13 bankruptcy.

The debt collector who set up a fake court room to make people pay their debts through coercion  has filed Chapter 13 bankruptcy.  The move comes in an apparent attempt to stave off a lawsuit filed by the Pennsylvania Attorney General.  A hospital had assigned two million dollars in overdue accounts to Covatto’s agency and the hospital is now not sure if they can collect them due Covatto’s actions.  I guess he will get a taste of his own medicine.  Read the petition and the other documents filed here:

Docket Report

1 Petition for Chapter 13 for Michael Covatto debt collector who created fake court room

2 Certificate of Credit Counseling with InCharge

4 Section 342(b) Notice for Michael Covatto