For the past few weeks people in New Jersey and across the U.S. have watched stunning performances by some of the best athletes in the world. The Olympic Games have offered a chance for many young people to gain fame, and to win one of the most coveted sporting events in existence. However, getting to the Olympics is not only hard work for the young athlete, it is also hard financially on their family. For one Olympic gold medalist and her family, the costs were such that her mother was forced to file a personal bankruptcy petition recently.
Readers in New Jersey may be familiar with Linwood Furniture, a company that makes furniture for the hospitality industry. The company filed commercial bankruptcy under Chapter 11 in March 2012. Now the court administrator in charge of the case has asked to have the filing changed to a Chapter 7. This comes after the company failed to file monthly reports or to pay the second quarter fees associated with the original filing.
Jose Canseco played on 8 different Major League Baseball teams during his 16-year career in the game. In fact, he was the Rookie of the Year for the American League in 1986 and the league MVP in 1988. His outstanding career included 462 home runs, and two World Series wins. New Jersey sports enthusiasts are likely not strangers to this baseball stars history, but his filing Chapter 7 bankruptcy may come as a surprise.
A recent report was released by the Consumer Financial Protection Bureau suggesting that Congress should consider changing the rules concerning the discharge of private student loan debt during bankruptcy proceedings. The current policy, based in a 2005 law, prevents borrowers in New Jersey and elsewhere from having their private student loan debt eliminated along with other forms of debt during a personal bankruptcy filing. The law was enacted to encourage private lenders to lower interest rates on student loans, an outcome that the director of the CFPB says never came to fruition.