Kathryn Davis

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

Pacific Gas & Electric (PG&E) has warned California lawmakers that it may need to file a bankruptcy if the company is found liable for the wildfires that ravaged parts of California in 2017. How PG&E Were Held Responsible On June 8, 2018, California’s fire management agency, Cal Fire, said that electric equipment owned by PG&E caused twelve wildfires around October 2017.  These wildfires were responsible for 18 deaths,  burned hundreds of square miles, and caused significant property damage.  Cal Fire says that PG&E violated a California law that governs vegetation management in eight of the wildfires that were responsible for…Read   More

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