According to an article in the Star-Telegram, Freedom Communications has filed Chapter 11 bankruptcy and agreed to give their creditors a majority stake in the business in exchange for forgiving a substantial portion of their debt.

The article said:

“The filing by Freedom Communications Holdings Inc. was part of a prepackaged plan approved by a majority of the company’s lenders, which should minimize the haggling that can bog down …

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According to an article in Reuters, unsecured creditors of Freedom Communications Holdings Inc. called the company’s bankruptcy plan “immoral and wicked.”

The article said:

“Freedom’s proposed bankruptcy plan would give secured bank lenders almost all of the reorganized company’s equity and $325 million in new notes. In return, secured lenders including JPMorgan Chase & Co, SunTrust Banks Inc and Union Bank of California would …

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… and faced friction with key partner Delta.

In 2009 Delta tried to terminate Mesa subsidiary Freedom Airlines’ ERJ-145 Delta Connection agreement on the grounds that Freedom did not meet operational performance standards spelled out in its agreement with Delta. Mesa won a preliminary court injunction to block the move after asserting in late May that Delta’s effort, if successful, could negatively impact Mesa’s business operations.  However, Delta is still pushing to have the …

… any further debt collection issues.  If you do, however, and have requested that a debtor cease communication with you, the new guidelines do allow them to respond to a dispute and communicated with you solely for the purpose of resolving the dispute.

The other FTC announcement this week involved a law enforcement crackdown on scammers.  The recession has spawned even more scammers trying to take advantage of consumers.  The FTC announced they would be targeting schemes, such as …

… Also, Chase has limited the amount of spending categories in which consumers in the Chase Freedom cards reward program can earn cash back.

One large credit issuer at the center of all of this is American Express.  It generates a larger than normal portion of its revenue from merchant fees.  In 2008 merchant fees were estimated at 53% of the company’s revenue.  Also, the company worries that any cut to its reward program can dull interest in the company’s cards.  That could …

The Consumer Law & Policy blog has a very revealing article about a judge in Indiana that took it upon herself to give indigent debtors a choice–”pay up” or “go to jail.”

The blog writer provided the transcript of an exchange between the debtor and the judge:

The Court: “So we’re here today for you to explain what you’re going to do to pay this off.”

Mr. Button: …

Comment by fox: … It all starts with communication and when that line is …

… enhances the quality of the negotiation and both sides are motivated by the win-win of better communication.

As the nature of our economy changes, creative ideas and current information are valuable tools in regaining your financial stability.  It’s important that when you are making the decision to file that you seek a qualified bankruptcy attorney that is familiar with the procedures and programs offered in the jurisdiction where your bankruptcy will be filed.  A good bankruptcy …

… a few tips for handling mortgage servicing companies:

Tip #1 – Keep meticulous records of all communication you have with mortgage servicing companies when trying to modify your mortgage to avoid foreclosure. That includes hang-ups, transfers and how long you were left on hold. Also, record times, dates and the names of all the people you spoke to.

Tip #2 – If you have a dispute and want to see records pertaining to you account, you can request a hard copy of your account …

… forgiveness through bankruptcy. Because of bankruptcy, businesses and individuals enjoy more freedom to take risks and thus continue to expand our society with new businesses and innovations.

… and his attorney that was for the purpose of obtaining legal advice with the expectation that the communication would be kept confidential. What this means is that a debtor cannot be compelled to reveal information that he has expressly told his attorney that he expects to remain confidential. This expectation of confidentiality must be expressed to the bankruptcy attorney explicitly. The client also has the power to waive this privilege either fully or partially.

During a bankruptcy …

… information about how or where to qualify for a rate freeze ; but will help "establish communication with a loan providers," "help create a homeowner budget" and provide the homeowner with " credit counseling " resources.

This seems like a good resource for homeowners facing foreclosure who are not knowledgeable about the processes available to them for preventing foreclosure. But today’s economic environment is NOT filled with those types of …

… money in a bank account. But most importantly, bankruptcy will give the debtor peace of mind and freedom from harassment by creditors.