M.C. Hammer

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M.C. Hammer is an American rapper and entrepreneur who enjoyed great commercial success and popularity in the late 1980s and early 1990s.  He is known for his flamboyant dance movements and clothing and his upbeat style of rap.  In the mid-1990s, gangsta rap became popular and his upbeat and poppy style of rap went out of style.  His music sales plummeted and because of his lavish lifestyle he went into $13 million of debt.  He eventually filed for bankruptcy.  Hammer later became an ordained minister. …

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Miguel De Cervantes

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Cervantes was a Spanish novelist and playwright who, in 1605, published what some consider to be the best work of fiction ever written, Don Quixote. It is a classic of literature and considered to be the first modern novel published in  Europe. Cervantes served in the Spanish navy and was badly wounded in the Battle of Lepanto where he was shot twice in the chest and once in the arm which caused him to lose the use of his left arm. He spent six months…

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San Bernadino, California

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The city of San Bernadino, California lies about 60 miles east of Los Angeles in the San Bernadino valley. Like other California cities, San Bernadino was squeezed financially during the post-2008 recession by unemployment, declining property values and rising pension costs, on top of some significant accounting errors and years of deficit spending. It projected a $46 million budget shortfall for 2012. Concerned that creditors may take action which would inhibit the city’s ability to deliver services to its 200,000 residents, San Bernadino filed for…

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Abercrombie & Fitch

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Abercrombie & Fitch was founded in 1892 as an upscale sporting goods store.  The company expanded in the twentieth century but began to fail after one of the founders,  Ezra Fitch, retired.  The company declined significantly in the 1960s and 1970s and after losing $1 million in 1975 it filed for Chapter 11 in 1976 and finally closed its doors in November 1977.  Abercrombie was purchased out of bankruptcy by other retailers and has become an iconic purveyor of clothes for Gen?X since then.

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Dave Ramsey

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Dave Ramsey is a financial author, radio host and motivational speaker from Tennessee.  He has a syndicated radio program that is heard on more than 500 radio stations throughout the United States and Canada and has written numerous books on the subject of personal finances and wealth building.  He has been featured on the Oprah Winfrey Show, 60-Minutes, The Early Show (CBS) and the FOX Business Network. Mr. Ramsey started out as a real estate investo,r and in his twenties built a rental real estate portfolio…

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DISCHARGING DEBTS ARISING FROM “BAD CONDUCT”

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DISCHARGING DEBTS ARISING FROM “BAD CONDUCT” One question that we’re commonly asked, especially now that a number of casinos have opened in northeastern Ohio, is whether or not gambling debt can be cancelled in bankruptcy. The answer is yes, it can. This might seem odd to some people, but the courts have universally held that losing money in games of chance does not constitute any sort of misuse or abuse that would affect a person’s ability to cancel those debts in bankruptcy. So for your…

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WILL ANYONE AT MF GLOBAL GO TO JAIL FOR TAKING CUSTOMER FUNDS?

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WILL ANYONE AT MF GLOBAL GO TO JAIL FOR TAKING CUSTOMER FUNDS? Imagine you are a banker and you remove funds from a depositor’s account and use them to pay the bank’s creditor card bill. Would that be illegal? Of course it would. It’s theft. But when MF Global Holdings, Limited, a New York brokerage firm formerly run by Jon Corzine (the former governor of New Jersey), took $175 million out of customer accounts to pay corporate obligations, no one got in trouble. MF Global…

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UNITED STATES SUES BANK OF AMERICA FOR MORTGAGE ABUSES

UNITED STATES SUES BANK OF AMERICA FOR MORTGAGE ABUSES Bank of America has been sued by the federal government under the “False Claims Act” for allegedly misrepresenting the quality of mortgage loans it sold to Fannie Mae and Freddy Mac prior to the financial meltdown in 2008. Bank of America has been sued by the federal government under the “False Claims Act” for allegedly misrepresenting the quality of mortgage loans it sold to Fannie Mae and Freddy Mac prior to the financial meltdown in 2008.…

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Same Sex Married Couples May Now File Joint Bankruptcy Cases

Same Sex Married Couples May Now File Joint Bankruptcy Cases The U.S. Supreme Court struck down the Defense of Marriage Act on June 27, 2013. By doing so, the court authorized same sex married couples to enjoy all the rights conferred by the Federal Government as other married couples. Prior to this decision, same sex marriages were not recognized by the Federal Courts and so in order to discharge their debts, same sex couples had to file separate bankruptcy proceedings thereby doubling the cost of…

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Why It Is Important To Disclose Any Potential Lawsuit You May Have In Your Bankruptcy Schedules

Why It Is Important To Disclose Any Potential Lawsuit You May Have In Your Bankruptcy Schedules A new case decided by the Sixth Circuit Court of Appeals, which is the federal court of appeals that covers Ohio, illustrates why it is important to always list any lawsuits or potential lawsuits you may have when you file your bankruptcy. Lawsuits and other claims are assets which must be disclosed in your asset schedules. There is a legal principle known as “judicial estoppel” which essentially says that…

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