U.S. carrier American Airlines is going through a bankruptcy process
Is well known that The U.S. carrier American Airlines is going through a bankruptcy process, but in order to solve this situation the company has signed an agreement with the union workers representing the mechanical and stock workers. But on the other side also announced the failure of talks with the union of pilots, The airline which is the main operator of the Miami International Airport, where the carries dispatched the biggest amount of flights from the US to Latin America is encouraged by the new steps in restructuring the company and has the resolution to achieve objectives on cost reductions and savings, also to increase productivity and flexibility, while preserving nearly 1,900 jobs that were eliminated, and offer higher wages to employees. Most of this jobs among airport workers in the city of Miami.
The company expect in the coming months to have an agreement with the pilots union, otherwise operations in the Miami airport would be suspended, causing damage to the economic performance of the main airport in South Florida. Pilots are under the protection of bankruptcy law since November 2011
Aerolínea Estadounidense American Airlines Proceso de Bancarrota
La aerolínea estadounidense American Airlines que desde hace un par de años viene atravesando un proceso de bancarrota , anunció la firma de un acuerdo con los sectores de mecánica y de almacenistas del sindicato , pero por otro lado también anunció el fracaso de las conversaciones con el gremio de pilotos, La aerolínea que es la principal operadora del Aeropuerto internacional de Miami, ciudad desde donde se despachan la mayoría de vuelos a Latinoamérica se mostró animada por los nuevos pasos en la restructuración de la compañía ya que El acuerdo de ratificación ayudará a American Airlines a alcanzar objetivos de reducciones de costos y de ahorro, aumentar la productividad y la flexibilidad ,preservando al mismo tiempo cerca de 1.900 puestos de trabajo que habían sido eliminados , muchos de ellos en la ciudad de Miami y ofrecer salarios más altos a los empleados.
Y esperan que en los próximos meses se solucione la situación con el sindicato de pilotos, de lo contrario las operaciones en el aeropuerto de Miami se verían suspendidas , causando daños al desempeño económico del principal aeropuerto del sur de la Florida . Los pilotos están bajo la protección de la ley de bancarrota desde noviembre de 2011
En las últimas semanas, los miembros del Consejo de la ciudad de Stockton en California aprobaron un nuevo presupuesto que guiará las operaciones de la ciudad durante el proceso de Bancarrota y la modificación de un déficit presupuestario de $ 26 millones. De esta manera las autoridades municipales podrían acogerse al Capítulo 9 de quiebra, lo que convertiría a Stockton en la ciudad más grande del país en afrontar un proceso de Bancarrota. El nuevo presupuesto suspenderá los pagos de la deuda, reducirá las indemnizaciones y los beneficios de los jubilados, lo que permite a esta ciudad de unos
292,000 residentes de continuar prestando servicios esenciales. Esto sucede después de que los legisladores estatales aprobaran, un proyecto de ley que requiere a las ciudades a contratar a un mediador de terceros para negociar con los acreedores antes de declararse en bancarrota. .Desde 2009, la ciudad ha reducido alrededor de US $ 90 millones en el gasto y eliminó 25 por ciento de sus oficiales de policía, el 30 por ciento de su cuerpo de bomberos y 40 por ciento de todos los otros empleados de la ciudad. Para la alcaldesa de la ciudad de Ann Johnston después de que funcionarios de la ciudad autorizaran la declaración de quiebra. Esta acción la deben tomar para mantener los servicios que son importantes para la seguridad y la salud de los ciudadanos.
The last couple of weeks, the city Council members of Stockton in California approved a new budget that will guide city operations during bankruptcy and amend a $26 million budget shortfall. With that vote out of the way, city officials could file for Chapter 9 bankruptcy, which would make Stockton the country’s largest city to go bankrupt.
The new budget will suspend debt payments, cut employee pay and reduce retiree benefits, allowing this city of about 292,000 residents to continue providing essential services through the bankruptcy process.
A year after nearby Vallejo, Calif., filed bankruptcy in 2008, state lawmakers passed AB 506, a bill requiring cities to hire a third-party mediator to negotiate with creditors before filing for bankruptcy. Stockton officials had hoped to avoid bankruptcy when the city became the first to enter into the new state-required mediation in March.
Since 2009, the city has cut some $90 million in spending and eliminated 25 percent of its police officers, 30 percent of its fire department and 40 percent of all other city employees.
Hector A. Pena & Eduardo D. Fons of 24/7 A Law Firm, P.A. Announce the Opening of New Location in Hialeah, Florida.
Hector A. Pena, Esq. and Eduardo D. Fons, Esq., of 24/7 a Law Firm, P.A. of Miami, Florida, focusing on commercial and civil litigation, bankruptcy, real estate and contractual disputes, as well as handled cases in banking, insurance, manufacturing, construction, and real estate lien matters. Specific matters include product liability claims, corporate shareholder disputes, and residential foreclosures among others.
“We have opened our new location in Hialeah to better serve our clients and be more accessible” says Hector A. Pena, Esq. This Location is in Central Hialeah easily reached as its near Okeechobee Blvd (State Road 27) and West 4 Ave, 395 West 10 St. Suite 1, Hialeah Fl 33010. Tel: 305-888-4404
The Hialeah law Firm Location will have the same services as the Kendall, Florida office. 24/7 a Law Firm, services include Traffic Ticket Violation, DUI, Car Accidents, Bankruptcy, Foreclosure Defense, Loan Modifications, Evictions, Real Estate and Commercial Litigation.
247 Law Firm, P.A. Services:
Traffic Tickets Citations
24/7 A Law Firm, P.A., is a full service law firm visit our website for more information on all our services www.247alawfirm.com . It is our goal to establish and maintain a hands-on approach to legal representation, matching the needs of industry managers and our every growing clientele. We work with our clients to develop policies and procedures which ensure that our client’s goals are met, as well as personalize each step of the legal process to meet our client’s criteria. High standards are set and maintained, while providing legal services at the most professional and efficient level.
A recent Blog reported that Burt Reynolds’ home might be foreclosed by the bank in order to collect on the debt owed. Mr. Reynolds case illustrates the frustration a lot of homeowners are feeling. It is my opinion that the new wave of foreclosures may come from what is called a strategic foreclosure. Basically, a strategic foreclosure is a decision by a homeowner to stop paying for the property even if they possess the economic means to continue to pay for it. The decision is an economic one as the property has lost so much value and the homeowner does not see a reason or way out of the situation. Many homeowners in this situation see making the mortgage payment as throwing good money after bad.
This may be the case for Mr. Reynolds, as he may no longer wish to keep a property he believes would not appreciate in value. At the core of these economic decisions emotions are at play and economist looking at only the hard data may miss that population of individuals not willing to throw good money after bad.
Written by: Hector A. Pena, Esq
According to a recent article by Scott Blake of Miami Today business bankruptcies have fallen. Business bankruptcy as opposed to a consumer bankruptcy, may allow the business to continue its day to day operations, or like a consumer bankruptcy allow for liquidation of the business’ assets in order to pay off the business’ creditors. According to the Miami Today article, “After a surge in cases during 2010, business bankruptcy filings in South Florida have slowed in recent months…From January through August, 886 businesses filed for bankruptcy protection in the Southern District of Florida, according to a Miami Today review of US Bankruptcy Court statistics. The district is on pace for 1,329 business bankruptcy filings for all of 2011. That projects to be a drop of 22% from a high of 1,709 filings last year.”
As the article notes, some lenders may be more willing to work with struggling businesses. Mr. Blake notes, “The sheer number of troubled loans has meant reassigning career lenders to new roles. They’ve gone from closing loans to closing companies, in some cases the same ones that they once funded. If a company files for bankruptcy protection, banks or other lenders may have long waits before a case is settled and any payments are received. Currently, the district has more than 33,000 cases pending from filings this year and in previous years, from both businesses and consumers. From March 2010 to March 2011, an onslaught of business and consumer bankruptcy filings hit South Florida. During that 12-month period, bankruptcy filings for the Southern District of Florida rose 26.5%, compared with the prior 12 months. That represented the largest percentage increase in the nation, according to the Administrative Office of US Courts. When businesses seek bankruptcy protection, most end up selling their assets and going out of business rather than reorganizing to stay in business. From January through August, 643 businesses in the district filed for Chapter 7 bankruptcy liquidation, while 205 filed for Chapter 11 bankruptcy reorganization, statistics show.”
The article notes that The Southern District of Florida recorded 24,366 consumer bankruptcy filings from January through August. That number projects to a total of 36,549 filings for all of 2011.
Businesses normally apply for two types of bankruptcy protection, either through a Chapter 7 bankruptcy liquidation or Chapter 11 restructuring plan. A chapter 7 liquidation plan allows for a business to wind down and liquidate its assets in a manner that is structured under the bankruptcy laws. More importantly, Businesses file for bankruptcy protection to take advantage of the automatic stay the Bankruptcy code provides. The automatic stay prevents and halts any collection to continue or commence once the bankruptcy petition has been filed. The drawback a Chapter 7 bankruptcy filing is that the business does not receive a discharge of the debts. The idea behind the code not providing a discharge of the business debts as to their creditors is that the business would be liquidated and stripped of any assets it may have had to satisfy that debt, essentially killing the business and making it impossible to continue functioning. Under a Chapter 11 bankruptcy filing, the business is still allowed to function while allowing debt to be repaid to creditors in a setting similar to an individual Chapter 13 bankruptcy.
Depending on the business owner’s goal either in continuing to function or wind down, bankruptcy may be a viable alternative that allows the business to properly pay down their debt or liquidate their assets to pay down their debt. Bankruptcy may also be an avenue that allows the business to restructure, reorganize, and revamp in order to maintain functioning.
Class action certified by Miami Judge Against David J. Stern
A recent article published by the Miami Herald online, explains that the once top lawyer for the banks as it relates to foreclosures has been sued in a class action by it’s formers employees for violating labor laws.
This lawsuit was filed as a class action making the potential financial exposure to Mr. Stern very high. However, what’s a class action lawsuit one might ask? A class action lawsuit is a lawsuit in which a group of people can sue together in a single action because there respective claims are very similar to each other. Mr. Sterns lawyers have asserted that the labor laws were not violated as the lay offs were unexpected. Mr. Sterns law firm handled many foreclosures for the banks and had over 100,000 cases that it was handling. After allegations of improper paper work started circulating the banks pulled there cases and the firm started it’s lay offs.
Fees for Bankruptcy have increased as more individuals are looking to file for Bankruptcy protection. Effective November 1, 2011, the court fees associated with filing under Chapter 7 and Chapter 13 of the Bankruptcy code will increase from $299.00 to $306.00 and from $274.00 to $281.00 respectively. The new fees are as follows:
Fee Increases Effective November 1, 2011.
Chapter 7: $306
Chapter 9: $1,046
Chapter 11: $1,046
Chapter 12: $246
Chapter 13: $281
Chapter 15: $1,046.
for more information please call our office; 305-888-4404
By: Eduardo D. Fons, Esq.
In a recent article featured in USA Today, American Airlines Chapter 11 Bankruptcy assets have come to the front light and are under some scrutiny. Specifically, coming into question is a $30 Million London townhome. As Reuters reports “As American Airlines parent company AMR works its way through bankruptcy reorganization, the company’s assets are being scrutinized as it tries to come up with a reorganization plan…one unlikely AMR-owned asset to be revealed so far is a townhouse in one of London’s toniest neighborhoods. Experts tell the news agency the property could be valued at up to $30 million. The five-bedroom house in London’s high-end Kensington district is a throwback to the airline’s expansion two decades ago and stands a 10-minute walk from the former home of Princess Diana, with gentry and diplomats as neighbors.
Although not considered a major asset crucial to the reorganization of American’s Chapter 11 Bankruptcy process, it is still strikes a sour note with the main street public as an example of lavish spending during an economic downturn.
Similar assets have been ordered to be turned over during similar proceedings by major American companies. As noted in the article, “The townhouse is a lot like the corporate jets that the executives at GM and Chrysler were forced to give up during their reorganizations,’ Richard Tilton, a director at real-estate auctioneer Sheldon Good & Co. and a lawyer specializing in bankruptcy sales, says in an interview with Bloomberg News. ‘Symbols of corporate suite excess are not likely to survive a Chapter 11 reorganization that is supposed to be fair and equitable.”
With many Americans filing for bankruptcy, turning over assets like these is not at all uncommon. Florida exemptions, although extensive as to homesteaded property (principal residence), only allow for limited amounts for personal property. Florida law affords $1000.00 in personal property if one is claiming homestead exemption to protect their primary residence, and $1000.00 for car value exemption. Florida law also affords an alternative “wild card” exemption if one is not claiming homestead property as an exemption and/or surrendering their primary residence or is renting and has no primary residence. The amount of the “wild card” exemption under Bankruptcy law is $4000.00, which in conjunction with the additional $1000.00 exemption allowed under the Florida constitution, can afford a debtor $5000.00 of claimed personal property exemptions.
Though limited as to personal property, Florida’s exemption law affords the most expansive protection for a primary residence. A debtor is afforded up to $146K of equity on their homesteaded property is owned for less than 3 and a half years, and if owned for more than 3 and a half years, protection for the full value of the property no matter its worth. For example, debtor may own a $30 million Florida townhouse as their primary residence for more than the time allowed and fully paid off, and the property is fully protected because of the expansive homestead exemption.
Unfortunately, for American, the homestead exemption would not apply to their $30 million London townhome.