March 31, 2017 The rapper 50 Cent paid off more than $22 million , and a federal court discharged the bankruptcy in Hartford, Connecticut, in early February 2017. He originally filed bankruptcy in 2015, reporting assets of less than $20 with $36 million in debt. The court set a repayment plan in motion to the tune of about $23 million for the rapper, whose given name is Curtis James Jackson III. Jackson broke into the rap scene in 2003 with the album, “Get Rich or Die Tryin .” Jackson sought protection after several lawsuit rulings against him. He owns a mansion in Farmington. While the mansion was slated to be sold, the early repayment negated that necessity. The original plan was scheduled to take five years, but he managed to repay it early by using his own money and more than $13.5 million that he received from a personal injury malpractice settlement. The courts allowed a discount for the early pay-off of the bankruptcy. He was able to initially pay $7.4 million followed by another $1.3 million. By negotiating with creditors after receiving the settlement, he was able to repay his debt early. Unsecured creditors dropped their claims from 74 to 72 percent. However, his journey toward solvency was fraught with challenges, among them a debt of $6 million to a woman after he posted a sex tape of her with her boyfriend online. She originally requested $7 million but also agreed to a reduced settlement. During the summer of 2015, when he initially filed for bankruptcy , he posted a photo of himself on social media with stacks of money. When the court questioned his behavior, his attorneys claimed that the money was not real and that he was simply pulling a publicity stunt, similar to the behavior of others in the entertainment industry. Sleek Audio, the largest creditor, won $18.1 million but eventually received about $17.5 million. They had made a headphones deal with Jackson that eventually dissolved. Filing bankruptcy might not result in the devastation that you believe. Talk to our legal team for further information on the types of bankruptcy and on possible options that might accelerate the process for you as well.
March 20, 2017 Lisa Marie Presley claims that upsetting photographs of young children have been found on a computer that belonged to her husband, Michael Lockwood, resulting in the placement of her 8-year-old twin daughters into protective custody . Presley and Lockwood are separated. Presley reportedly found inappropriate video film and numerous photos on his computer. In court documents filed in Los Angeles on Feb. 7, she expressed her outrage at the alleged discovery. The twins are in the care of California’s Department of Children and Family Services . Presley has requested that the court refuse Lockwood’s request for $100,000 in legal fees and $40,000 monthly in alimony based on his reported possession of the pictures. The incident affected her emotionally, thus providing a rationale for denying the monetary claims, according to her attorney. The Beverly Hills Police Department indicated that that child abuse allegations stemmed from incidents that occurred in Tennessee. The Tennessee Bureau of Investigation apparently seized different items prior to June 2016. However, the BHPD added that the TBI had not filed a case related to the matter. Presley further indicated that her previous business manager did not pay taxes; as a result, she owes millions of dollars in delinquent taxes. She explained that the business manager and Lockwood purchased large items without her permission. She also pays for two full-time nannies along with the expenses for the girls’ private school. Presley resides with an older daughter in order to reduce her financial outlay. Lockwood responded to the allegations, claiming that they were nothing more than a weak attempt at defamation. He further insisted that her statements were inaccurate but added that he would not seek revenge by painting her in a negative light. He categorically denied the accusations but did not make an additional statement regarding the matter. In some cases, criminal activity of the other party might affect the payment of legal fees and alimony , reducing your financial responsibility. Emotional distress might also impact your divorce case . A competent family law attorney can provide you with further information on the financial implications for your specific situation.
March 10, 2017 A 19-year-old freshman at Orange Coast College in California was suspended after he recorded his professor criticizing President Trump in December 2016. The student plans to appeal his case; if the school refuses his appeal, he has indicated he will file a lawsuit. The process involves an appeal through the proper channels at the college. If that doesn’t work, he will file his case in federal court. The student was directed to apologize to the professor and write an essay stating why he made the recording. He was also terminated from classes for a semester and for the summer term. After the student recorded the video, he posted it on YouTube and then on the school’s Facebook page. His lawyer claimed that he was targeted as a conservative and alleged that the student’s civil rights were violated. One professor observed that the school Republican had engaged in cyberbullying by posting the video. Another instructor commented that the posting was an effort to intimidate instructors and was politically motivated. The chairman of Republican Party of Orange County categorically denied this claim, further stating that that the school was limiting the young man’s freedom of speech . He labeled the school’s actions as an attempt to trample the freedom of speech of the young man and again emphasized his support of the young man in question and of his right to appeal the case. The young man allegedly received death threats after he posted the video. The female gay professor, 68 and a Latina, explained that she commented about the President in all three classes that she taught on human sexuality. She wanted to comfort students who were upset about the election and to direct them to resources if they felt discrimination. She was recorded stating that the election of President Trump was “an act of terrorism.” Upper management at the college was reportedly investigating her statements, but it was not known if the school took further action in the matter or if they finished their report. If you believe that your right to free speech has been violated, call us for assistance. We will review the facts of your case and provide you with counsel on a possible course of action.
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January 28, 2018 According to an October 27, 2017, announcement, the Los Angeles jeans company, True Religion, exited Chapter 11 bankruptcy with about $357 million less debt, debt maturities extended, cash to implement a growth plan and a positive outlook for the future. The company emerges with a reduced retail footprint and an exit loan of $60 million from Citizens Bank, the same bank that provided the initial cash during the reorganization process. At the peak of the company, True Religion jeans were selling anywhere from $150 to $250 a pair at their nearly 140 stores and online. The brand also sold at upscale department stores, such as Bloomingdales, Saks Fifth Avenue and Nordstrom and at other locations in the U.S., Mexico and South America. Around 2013, True Religion, like many other apparel stores, struggled for success, watching sales decline as it competed with the internet, online shopping and competing discount retailers. The rapid growth in the trend of athletic wear for leisure caused the sales of blue jeans to quickly decline. Behind $192,000 on rent for its California office headquarters and drowning in major debts owed to creditors, manufacturers, U.S. Customs and Border Protection and malls around the country, True Religion filed for bankruptcy on July 5, 2017, in a U.S. Bankruptcy Court in Delaware. At the time of filing, the company had 128 stores in the United States and 11 stores outside the country. The company made some major changes, hiring John Ermatinger as CEO and president and bringing on a new chief marketing officer and a new vice president of sourcing. They also reduced costs, streamlined processes and closed unprofitable stores. John Ermatinger publicly thanked the company’s supporters — consumers, employees, vendors and suppliers — for their ongoing commitment and devotion to True Religion. He expressed his excitement regarding the future of the company, which includes implementing new growth strategies through innovative partnerships, expanding True Religion’s digital presence and refining its marketing operations. You do not have to be a major corporation to file bankruptcy , Like in the case of True Religion, bankruptcy allows individuals to emerge in a better financial position than before. Our legal team can help you navigate through these difficult times.
January 16, 2018 A Fresno State professor who intimidated a pro-life group was ordered to pay $17,000 and attend training on the First Amendment. He was recorded on video in an attempt to harass pro-life students who were drawing with chalk on the sidewalk. He also asked students from his public health class to assist him in his efforts. He claimed they were outside of the campus free speech area, but no such area has existed on campus since 2015. The sidewalk messages suggested pro-life options for students. The president of the club stated that the First Amendment gives students the right to speak on campus. She documented an incident between herself and the professor on video. He can be heard telling her that she is not in a free-speech area. However, she claimed that she had school permission to be there and to be speaking. The professor began erasing the sidewalk messages with his shoe. He told her that she did not understand the areas where free speech was permitted on campus. Alliance Defending Freedom acted as legal representation for the group, the Fresno State Students for Life. The professor must pay $1,000 to the president and $1,000 to another student as well as legal fees. However, he said that the money was paid by his insurance company, so he is not concerned about the legal fees. He does not admit to any wrong actions but is willing to attend the training so that he can learn the opinions and thoughts of others. The president expressed her relief that he will not be able to harass them again and explained that the case was not about winning money. She was extremely surprised at his actions, especially on a public campus. She further opined that professors should encourage and not prohibit free speech. Legal counsel for the pro-life group stated that the professor’s behavior flagrantly violated the First Amendment He added that school officials do not have the right to restrict freedom of speech on campus. The school did not comment about the case. If you believe that your First Amendment rights have been violated, you will need experienced legal representation to defend you. Contact us so that we can discuss your case.
January 5, 2018 The complexities of any divorce include dividing money, property and assets between both parties. While this might not be as complex for a millennial as it is for a couple who has spent their lifetime acquiring possessions, both types of divorce require finding a qualified family lawyer to deal with the personal issues. Legal experts report that stereotypes claim that other generations are more loyal than millennials who don’t really value traditions. She continues that even though they wait to marry, they still place a high priority on the institution. However, she added that they will not tough out a relationship the way their parents did. This by no means makes a divorce any easier for millennials. They feel just as hurt and disappointed as any others who divorce , but their outlook for the future tends to be more optimistic. Although marriage rates in the U.S. continue to decline, divorce rates are also dropping. Millennials delay marriage until later in life, placing an emphasis on education and careers before taking this significant life step. Millennials tend to be more open to diverse relationships, including living together. In the past, prenuptial agreements held a negative connotation as if one of the parties expected the marriage to end. The more-practical millennials, who prioritize acquiring and preserving wealth, see the prenup as a planning tool and communication map to manage financial expectations and interests. Creating a prenup with a lawyer realistically deals with the uncertainty of the future and helps a couple draft specific plans. Millennials choosing to live together instead of marrying can benefit from an attorney’s expertise when drawing up a cohabitation agreement, protecting both parties and their assets in case the relationship ends. When couples know the laws regarding cohabitation , marriage and divorce in their state, they tend to be ready for even unexpected contingencies. Whether a couple plans to cohabitate, marry or file for divorce, planning for a big relationship step helps the individuals prepare for the future, no matter what happens in the marriage. Consulting with a knowledgeable, experienced family lawyer sets up both parties for success.
December 23, 2017 The 32-year-old mother entered the high rise in downtown Memphis as a memory tugged at the far corners of her mind. Suddenly, it came to her. She had been in this very building with her own mother for the same purpose — to file bankruptcy . She anguished over the decision but a court order had recently enforced a judgement against her that allowed a company to seize a portion of her check. With her struggle to make ends meet, the judgment would put an unbearable strain on her already overburdened finances — the proverbial straw that broke the camel’s back. Despite the stigma, she decided that bankruptcy would stop the vicious cycle of juggling bills each month so that she could now start fresh. She even dreamed of becoming a homeowner one day. While the U.S. Bankruptcy Court for the Western District of Tennessee in Memphis funnels millions of dollars to the court, the lawyers and the creditors, the debtors for whom the entire system exists don’t fare so well. The clients are stuck in a vicious cycle. Most people choose to file Chapter 7, which allows the person to start over from square one without seizing any debts. In contrast, Chapter 13 requires monthly payments while stopping car repossessions and home foreclosures. This method is most common in the South and was what this mother chose. She didn’t understand the difference between the two. However, filers who opt for Chapter 13 must continue making payments for five full years. Most cannot even last 12 months under the program. These individuals went through each and every step of the bankruptcy — paying filing and legal fees and dealing with a seven-year blemish on their credit record — but do not ultimately benefit from the program. Once they have defaulted, they revert back to all unpaid debts with interest rates higher than ever. When comparing Caucasian filings with African-American filings, the latter usually file under Chapter 13 but cannot complete the program. Some return for repeat filings, with a few filing Chapter 13 up to 20 times during their lifetimes. They view bankruptcy as a last resort. If you are considering bankruptcy, talk to our knowledge attorneys about which options — Chapter 7 or Chapter 13 — is best for you.
