Aug
2014

Commit Bankruptcy Fraud to Pay Back Mom?

Dear Bankruptcy Adviser,

Can I file bankruptcy even though I only get $600 a month from Social Security? I owe my mom $15,000. Can I use my credit card to pay her and then file on that card?

- Geraldine

Dear Geraldine,

First and foremost, no, you cannot use your credit card to pay back your mother and then file bankruptcy for that card. That is fraud and would be considered illegal.

Bankruptcy is for people that intend to pay their bills, but cannot. The vast majority of time, the individual filing bankruptcy has gone through a period of unemployment, a divorce or dealt with medical issues.

Bankruptcy is not a way to transfer debt that you owe family...

Aug
2014

For-profit Anthem Education abruptly closes campuses after filing bankruptcy

After years of enrollment losses, Anthem Education, a for-profit chain of colleges and career institutes, filed for bankruptcy Monday. The company has abruptly shut down a number of its campuses, leaving state agencies struggling to funnel displaced students into other institutions. Nine more campuses may close today, Anthem officials said.

Anthem had 41 campuses prior to declaring bankruptcy, according to its bankruptcy petition. Before it filed for bankruptcy the company sold 14 campuses to International Education Corporation, said an official involved in the acquisition. Anthem is in the process of selling an additional 14 campuses to IEC, but requires federal approval to do so. Unless...

Aug
2014

State Prosecutor Closes Investigation into School-Issued Credit Cards

Its a new school year and a fresh start for students, but maybe the same thing could be said for the Montgomery County Board of Education.

The school system announced Tuesday that the state prosecutors office has closed its investigation into the usage of the boards credit cards after finding no evidence of criminal wrongdoing.

Montgomery County Public Schools said in a news release that State Prosecutor Emmet C. Davis notified the district Monday that after reviewing expexpense reports from board members and senior school officials his office decided not to continue its investigation.

The notification comes after the board voted to eliminate the district-issued...

Aug
2014

Five Things You Should Know About Getting Approved for a Business Loan

by Cary P. Yates
Special to the NNPA from the Houston Forward-Times

Myths and misconceptions about the reason banks decline loans and the rate at which this happens are as common today as ever. As a banker, it’s my goal to bring clarity to the process, and explain what it takes for a business to get a loan and why a loan application may be declined.

Let me share a few credit basics small business owners should know before applying for a loan that may make the loan review process easier to understand.

For a banker, evaluating a credit application means reviewing the five C’s of credit: credit history, collateral, capital, conditions and capacity. You may have...

Aug
2014

New initiative aims to help Dallas area’s working poor to help themselves

Many nonprofits act as triage units for needy families, while others believe writing aid checks merely treats the symptoms instead of the disease.

The Communities Foundation of Texas is trying to steer nonprofits toward educating the working poor in basic financial literacy, so that one medical emergency or layoff won’t plunge them into poverty.

The foundation is funding a new initiative called the Working Family Success model to serve those barely living above the federal poverty line. The model, developed by the Annie E. Casey Foundation, bundles services such as job training, financial counseling and income support.

“The wealthy in Dallas have financial...

Aug
2014

Hints from Heloise: Some new credit cards have security chips

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Dear Readers: Have you received a new credit card lately? Does it have a chip in it? These newer credit cards have a microchip as well as a magnetic strip. And they are more secure than the ones with just the magnetic strip.

The good news is that the microchip is very, very hard to counterfeit. Some even have a personal identification number to punch in when using the card. This makes it extremely difficult for criminals to copy it. So take a look at your credit cards to see if there is a silver holograph on the front or the back. Yep, it has a chip. If you are uncertain, call the financial institution that issued the card and ask if the card has a microchip....

Aug
2014

Police:Men Spend Thousands with Stolen Credit Cards

SOUTH BURLINGTON, Vt. Police in Chittenden County arrested two men who they say used stolen credit cards to buy thousands of dollars worth of merchandise at local businesses.

On August 22, police responded to Hannafords at the University Mall for a report of men trying to use bad credit cards. The suspects were identified as ShaoQing Chen, 25 and Kewang Lin, 36 from Brooklyn, NY.

Police say they used nearly a dozen stolen cards over a two day period, spending close to $7,000 dollars on the stolen cards.

After their arrest, South Burlington police continued to receive information from potential victims. They determined additional charges occurred at businesses in Essex,...

Aug
2014

Business law quarterly—summer 2014

Bankruptcy Remote? Maybe Not

You may have encountered the term bankruptcy remote. It was coined to refer to a method of endowing a company with certain characteristics which are designed and intended to make it impossible for the company to file a case in bankruptcy. The purpose is to facilitate financings by assuring the lenders through use of bankruptcy remoteness that their obligor would not seek to use bankruptcy proceedings to restructure the loans. As our readers may know, a debtor in bankruptcy may be able to reduce the interest rate, extend the maturity, change the amortization of debt and even split off some the debt into unsecured status in a bankruptcy proceeding. Lenders...

Aug
2014

Search is on for suspects stealing credit cards from cars