Cleveland Law Library Weblog

U.S. Courts Find that Baby Boomers File Almost 50% of Bankruptcies

A new study issued by the U.S. Courts indicates that baby boomers (i.e., 45 and older) file almost half of the bankruptcies the U.S. courts handle. Statistics apparently show that the median age has gone up from 37.7 in 1994 to 44.9 in 2007. Click here for for more information or to obtain a copy of the study.

2010 Bankruptcy Filings Increased Almost 14% Over 2009

The sad statistics are in from the federal courts, and the bad news is that bankruptcy filings were up almost 14% over 2009. The highest increases were seen in non-business bankruptcies, with Chapter 7 liquidations leading the numbers. This is no doubt a result of the country's economic downturn. The Court's press release contains a lot of links to different tables that analyze the data.

U.S. Bankruptcy Filings Exceed One Million

This has been a bad year for many Americans. The U.S. Courts website reports that bankruptcy filings for its fiscal year 2008 ending on September 30, 2008 exceeded one million.The total new cases of 1,042,993 topped 2007 figures by over 30%. Although I remember lawyers and claimants racing to file before the new Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect, the numbers are almost as high today. Of the million-plus filings for 2008, business filings were up 49%, while non-business filings were up 30%. The only bankrptcy code chapter that did not see an increase was Chapter 12, which is for farmers. Multiple tables and additional data can be found at the link above for the Courts' website.

U.S. Courts Produce 8 Bankruptcy Basics Videos

The U.S. Courts recently produced 8 bankruptcy basics videos. The topics include an 1) Introduction; 2) Types of Bankruptcy; 3) the Limits of Bankruptcy; 4) Filing for Bankruptcy; 5) the Creditors' Meeting; 6) Court Hearings; 7) The Discharge; and 8) Legal Assistance. According to the news release on the videos, they are for debtors, creditors, court personnel, the media and the general public. Although these videos cannot replace the valuable assistance an attorney can provide, practitioners may find that they will be helpful in generally educating clients and potential clients about the bankruptcy process.

Employees Sue Columbus-Based Skybus Under WARN Act

Last week, former employees of Skybus, a Columbus-based airline company which recently shut down its operations, sued the company in bankruptcy court, alleging that Skybus violated the Worker Adjustment and Retraining Notification Act (aka The WARN Act). The WARN Act (contained in 29 U.S.C. sec. 2101 and 20 CFR Part 639) was designed to protect employee rights and requires companies with 100 or more employees to give 60 days advance notice of a closing or pay its employees 60 days of pay. This case was filed in Delaware Bankrupty court as a class action adversary proceeding in Case No. 08-50570-CSS, and the Court's docket can be found on PACER. Skybus' bankruptcy proceeding on PACER is Case No.08-10636-CSS. Click here for a fact sheet on WARN from the U.S. Department of Labor. 

2007 Bankruptcy Filings Were Up 38% in Federal Court

According to a report recently issued by the U.S. Courts, 2007 bankruptcy filings were up 38% in federal court. Of the 850,912 bankruptcies filed, regretably, Ohio ranked 6th for all filings, 3rd for Chapter 7 filings, and 10th for Chapter 13 filings. The Court has provided a succinct summary of all of the study's findings, and informational charts with per capita and date range figures can be found at the court's website.

Cleveland Athletic Club to File Chapter 11

Crain's reports that the membership of the Cleveland Athletic Club, in which many local attorneys have memberships, has voted to file for Chapter 11 reorganization. The Club, which is located in the Playhouse Square area, is 99 years old and hopes to remain in business with a financial plan to be approved by a bankruptcy court. The Club has apparently reached a tentative agreement with its new landlord, thus solving one of its most immediate concerns.

Bankruptcy Courts Streamline Information for Pro Se Filers

The U.S. Courts have developed a new page for individuals who want to file and handle their own bankruptcies. The new page is called Filing for Bankruptcy Without an Attorney and provides links to the United States Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, Approved Credit Counseling
and Debtor Education Course Providers, an interactive bankruptcy court map, forms and instructions, and a bankruptcy resources page.

Arter & Hadden Bankruptcy Settlement a Done Deal

The Plain Dealer reports that the Northern District of Ohio bankruptcy court has approved a settlement involving the former partners of the now defunct Cleveland law firm of Arter & Hadden. Under the terms of the settlement, about 180 lawyers will pay a combined $11 million to about 400 creditors, including court reporters, legal researchers, landlords, suppliers and retired partners. Despite the enormity of this settlement, there are still other suits pending against Arter & Hadden, which closed its doors in 2003.

Bad Faith Debtors Not Entitled to Conversion to Chapter 13

Per Lawyer's Weekly USA, Feb. 22, 2007: "A Chapter 7 debtor does not have an absolute right to convert to a Chapter 13 bankruptcy filing where the debtor engaged in "bad faith" conduct, the U.S. Supreme Court has ruled."  The case is Marrama v. Citizen's Bank of Mass. (Feb. 21, 2007), U.S. Supreme Court Case No. 05-996.  Also see:High Court Says Concealment of Assets Can Take Away Important Right in Bankruptcy by Pete Yost, Associated Press, Law.com, Feb. 22, 2007.