Kathryn Davis

May 29 is National College Savings Plan Day.  529 plans are tax advantaged savings plans that are designed to encourage saving for future costs of high education.  529 plans are legally known as “qualified tuition plans.”  They are sponsored by states, state agencies, or educational institutions.  The name comes from the fact that the savings plans are authorized by Section 529 of the Internal Revenue Code. While 529 plans can be a great way to save for college, only 29 percent of Americans know about them, according to a recent poll by Edward Jones.  This was down from last year,…Read   More

Political consulting firm Cambridge Analytica announced last week that it was planning to cease its operations and file for bankruptcy.   The announcement follows growing concerns of its business practices and its work during the 2016 presidential campaign. The company offered tools and tests that could supposedly identify the personalities of American voters, and could also influence their behavior.  These techniques were utilized for the Trump campaign as well as for other candidates in 2014 and 2016.  Cambridge Analytica came under major scrutiny this year for its methods of profiling American voters and also because of allegations that it improperly gathered…Read   More

The Consumer Financial Protection Bureau (CFPB) has two sets of new amendments to its RESPA and TILA mortgage servicing rules that will go into effect on April 19. One set of these amendments affects borrowers who are in or have been in bankruptcy. New Amendments This set of amendments gives homeowners who are in or have been in a bankruptcy the right to receive monthly mortgage statements. In 2014, the CFPB issued a periodic mortgage statement rule that requires mortgage servicers to send monthly statements with detailed information about a borrower’s loan.  The rule has a broad exemption for a…Read   More

For my generation, no middle school trip to the mall was complete without a visit to Claire’s to pick up some jewelry, gifts, or maybe even get your ears pierced.  In fact, Claire’s says it has pierced more than 100 million ears around the world!  Last week, the company became the last retailer to file for Chapter 11 bankruptcy. The Financial State of Claire’s Claire’s held $2.1 billion in debt at the close of 2017, and is seeking to reduce its debt by $1.9 billion through the bankruptcy.  The company earned $29 million in profit and $1.3 billion in revenue…Read   More

After much speculation, one of the largest American manufacturers of ammunition and firearms, Remington Outdoor Company, announced that it is planning to file bankruptcy in the state of Delaware. Remington has reached a Restructuring Support Agreement with creditors that will be effectuated through a reorganization plan filed in a Chapter 11 bankruptcy. The restructuring deal will reduce the company’s debt by around $700 million and will add $145 million in new capital. The deal will give lenders ownership in the firearms maker. Why Did Remington File Bankruptcy? Some have speculated that the election of Donald Trump affected Remington’s gun sales,…Read   More

The largest oil refinery on the East Coast has filed for bankruptcy. Philadelphia Energy Solutions LLC is the owner of the biggest oil refinery that serves the New York Harbor diesel and gasoline market. The company filed for Chapter 11 bankruptcy protection on Sunday, January 21. The bankruptcy petition listed its debt between $1 billion and $10 billion.  The company will seek to restructure its debt and continue with operations. Behind the Scenes of Philadelphia Energy Solutions In 2012, private equity firm Carlyle Group and Sunoco Inc. saved Philadelphia Energy Solutions from financial distress.  It received government aid and tax…Read   More

Taking control of your finances is extremely liberating.  This is the time of the year when people set financial goals for the year.  Here are some of the more popular financial resolutions and some tips for meeting your goal. Common Financial Resolutions (And How to Achieve Them) Save More Money If your goal is to save more money this year, there are a couple of ways to make sure you are successful.  First, make savings automatic.  Go ahead and set part of your paycheck to be deposited straight into a savings account.  It is also helpful to set manageable goal. …Read   More

According to the U.S. Department of Housing and Urban Development’s annual Point in Time report released this month, the U.S. homeless population increased for the first time since 2010. The report showed that during counts taken in January, nearly 554,000 homeless people are living in the U.S.  That number is up nearly 1% from 2016.  Of the homeless people living in the U.S., approximately 193,000 are considered unsheltered, which means that they are living in tents, vehicles, on the streets and other places that are uninhabitable.  This figure is up by over 9 percent over the last two years. Homeless…Read   More

XCOR Aerospace, an innovator in the aerospace industry, has filed for bankruptcy. XCOR is a private spaceflight and rocket engine development company based at the Mojave Air and Space Port in Mojave, California, and in Midland, Texas. There are also locations in Amsterdam and Hong Kong. XCOR is best known in the aerospace industry for a suborbital space plane that was announced in 2008.  They designed “Lynx” to carry a pilot and one space flight participant. The company intended for Lynx to take off from a runway and fly into a suborbital arc, landing back on the runway after the…Read   More

A piece of bipartisan legislation concerning Chapter 12 of the Bankruptcy Code landed on the President’s desk for signature last week.  The Family Farmer Bankruptcy Clarification Act of 2017 was sponsored by Senator Al Franken (D-Minn.) and Senator Chuck Grassley (R-Iowa), and was included as a part of the supplemental appropriations package that the Senate approved 82-7.  “Our bipartisan bill is a commonsense fix to ensure that the law functions as intended and protects family farmers in Minnesota and across the country,” Senator Franken said in a statement on October 24. “I’m glad this bill is set to become law and…Read   More