Kathryn Davis

As bankruptcy rates among American farmers continue to rise, a bill was recently introduced in the Senate that would make some changes to Chapter 12 of the U.S. Bankruptcy Code.  The Family Farmer Relief Act of 2019 is designed to help family farmers reorganize after falling on hard times. Chapter 12 is the section of the bankruptcy code that is specifically for family farmers and fishermen. Congress established Chapter 12 of the Bankruptcy Code in 1986.    Chapter 12 removes many barriers that debtors would face under Chapter 11 or Chapter 13. For instance, Chapter 12 is less complicated and expensive…Read   More

This month, two completely different companies, Ditech Holding Corporation and Payless, Inc., filed Chapter 11 bankruptcies for the second time in as many years.  However, the purpose of the Chapter 11 filing is different for each company. Ditech files for Chapter 11 Ditech Holding Corporation, along with its subsidiaries, including Ditech Financial LLC and Reverse Mortgage Solutions, Inc. has filed for Chapter 11 bankruptcy in the Southern District of New York.  Ditech has a plan to restructure its debt and continue to operate. Ditech along with its subsidiaries is an independent servicer and originator of mortgage loans.  It is also…Read   More

You might have heard about the doomed Fyre Fest that took place in early 2017.   The music festival was promoted by models and celebrities like Kendall Jenner and Bella Hadid.  These celebrities were paid by the festival promoters to promote it on their social media. What Went Wrong at Fyre Fest? Around 5000 people purchased tickets to Fyre Fest, expecting a fun two weekends of music and fun.  Festival-goers were promised a luxurious music festival in the Bahamas and instead were welcomed to a disaster. The only musical act to perform was a group of local musicians on the night…Read   More

Christmas time is here again, and with that comes the stresses of gift giving.  Getting wrapped up in the season makes it easy to overspend.  I put together Christmas shopping tips to help with shopping on a budget! 1. Set a Spending Limit. Take a look at your finances and figure out exactly the amount you are going to spend in all. 2. Make a Shopping List. Make a list of everyone you need to buy gifts for.  It is okay to trim this list to just immediate family or close friends. 3. Plan Your Spending Around Your List. After…Read   More

The Internal Revenue Service announced this month that the employee contribution limit for 401(k) and other workplace retirement plans will increase next year.  The current contribution limit is $18,500 and the limit will increase to $19,000 in 2019. While this might not seem like much, Neal Van Zutphen, a financial planner, calculated that investing an extra $500 annually over a 30 year period, with an average 7% rate of return, would result in about $47,000 in retirement savings! What is a 401(k) and How Much Can I Contribute? As many of us know, a 401(k) plan allows workers to save…Read   More

Many people have no idea what their actual income and expenses are. A good budget can help you figure it out. Budgeting is especially important if you are trying to get rid of debt, trying to save for your family’s future, or just to make sure you are spending your hard earned money wisely. It will also make you feel much more secure to know exactly where your money is going. First Step: Figure out Your Take-Home Pay If you get a regular paycheck, this should be easy enough to figure out. If you get overtime here and there, I…Read   More

Last week, the Attorney General for the state of New York announced she had filed a lawsuit against nine student loan debt relief companies, a financing company, and two individuals who have leadership roles in these companies.  The lawsuit was filed in New York Supreme Court.  According to the lawsuit, the defendants used fraud and deception, as well as illegally advertised and sold student debt relief to thousands of consumers nationwide and in the state of New York. What Companies Are Being Sued? The student loan debt relief companies named in the lawsuit are Debt Resolve, Inc.; Hutton Ventures, LLC;…Read   More

One question I invariably get asked daily is “how will bankruptcy effect my credit score?”  Credit scores help determine whether we qualify for mortgages and loans, and what kind of interest rate we will have to pay.  Have you ever wondered how this whole credit reporting business got started?  I recently listened to a Planet Money podcast that went through the history of the bureaus after the Equifax hack last year, and it was very interesting. How Did Credit Bureaus Get Started? Keeping Record by Hand Back in the 1800s, if you wanted to buy something like groceries on a…Read   More

The U.S. Department of Housing and Urban Development (HUD) has accused Facebook of enabling housing discrimination.  According to HUD, Facebook allows property owners and landlords to discriminate against prospective tenants and buyers on the basis of race, color, religion, familial status, national origin, disability or other factors. Accusations Against Facebook In its complaint, HUD alleges that Facebook allows advertisers to purposefully exclude certain people from seeing housing advertisements based on factors that violate the Fair Housing Act.  According to HUD’s complaint, Facebook enables advertisers to, among other things: display housing ads either only to men or women; not show ads…Read   More

Valentine’s Day might look a little different next year.  The plant that manufacturers Sweethearts candy closed suddenly last week.  Round Hill Investments, LLC abruptly shut down the New England Confectionery Company, or Necco, plant in Revere, Massachusetts.  Necco has been the oldest continuously operating candy company in the United States.  In addition to the beloved Sweethearts candy, the company also makes Mary Jane and Squirrel Nut Zippers candy, among others. What Happened? Round Hill Investments, LLC is owned by billionaire C. Dean Metropolous.  Round Hill bought Necco out of bankruptcy in May for $17.3 billion.   At the time of closing…Read   More