This is the last move for a company that was bringng in $150 million in annual revenue a few years ago. But the acquisitions that helped them grow to that size put Ascend in a large debt hole. Their 2004 purchase of Medical World Communications cost $130 million.

Much of Ascend’s business was centered on health care related publications, including magazines, newsletters and custom publications. Some of these pieces have been sold off over the last two years. The event and custom media division was purchased by a former Ascend CEO, who took part of the name and started a new venture.

Other products sold off before the bankruptcy include:

• Professional services division, including 17 publications
• Expo magazine
• Dental group, featuring four publications
• Ascend Health publishing division

Ascend is based in Kansas City.

Passed back in May, new legislation was set to take effect in February that would change the way credit card companies do business. Some of these laws went into effect this fall, but the big ones don’t hit until next.

Congress gave the credit card companies a waiting period before the law kicks in to give them time to prepare for the changes. But this fall, many Americans have seen their interest rates and fees skyrocket.From the WSJ:

“We gave them time–more time than I wanted to,” said House Financial Services Chairman Barney Frank (D., Mass.). “They then used that time not to calibrate so they’d be ready for the effective date, but to start to jack up the rates.”

Recently, Senator Chris Dodd proposed legislation that would freeze interest rates until the new laws take effect. The House beat him to the punch and passed their own bill, which will now move to the Senate.

The House bill would also make the new credit card law effectively immediately. The new law sets limits when a card issuer may increase rates, how they market to students and the fees they charge.

We’ll keep you posted as this bill moves to the Senate. The WSJ says it’s unclear how much support this measure has in that chamber.

Former ‘Husker lineman Aaron Taylor was forced to liquidate seven championship rings and his Outland Trophy to settle his debt after filing Chapter 7 bankruptcy.

Taylor was a star offensive guard for the University of Nebraska football team from 1994 through 1998. In his time as a Cornhusker, he helped the team to three national championships. In 1997 he won the Outland Trophy as the nation’s best interior lineman. The trophy itself depicts a lineman charging forward to make a block.

Taylor filed for bankruptcy as a result, for the most part, of the failure of his Cornhuskers-themed restaurant, the Scarlet and Cream Letter Club, at which he was an officer. He started the restaurant in Omaha with several other former Nebraska football players, ESPN reported.

But the business struggled, and Taylor filed for bankruptcy, reporting more than $100,000 in debt, most of which came in the form of taxes owed on the failed restaurant for which he was legally responsible. In the filing he only listed $5,300 in assets, leaving off his football memorabilia.

Initially, Taylor tried to block the liquidation sale of his college football memorabilia. According to the conditions of his Chapter 7 bankruptcy, however, the law did not allow him to do so, and the items were put up for auction.

Chapter 7 bankruptcy is designed to clear your unsecured debt quickly, but creditors may be allowed access to valuable non-exempt property. Every state outlines extensive exemptions which can be used to protect valuable when you file.

Unfortunately, Taylor’s case did not qualify for a bankruptcy filing that would have allowed him to maintain possession of some assets while he repaid the debt. And the court’s viewed Taylor’s rings and trophies were too valuable for the exemptions, which typically include things like homes, cars, clothes, work tools and household goods.

According to the New York Times, it took only about 30 minutes for Taylor’s college football memorabilia to change hands via online auctions. The auction items included the Outland Trophy, which sold for $6,800, and the championship rings, which were encrusted with diamonds, which sold for between $2,000 and $5,900. In total, the auction items sold for $28,500.

A group of Nebraska Cornhusker football fans were reportedly upset about the situation, and attempted to raise funds in order to help Taylor bid on the memorabilia himself. Those attempts seemed to have been futile, however, as the bankruptcy trustee in the case told the Associated Press that Taylor did not appear to be the buyer for any of the auction items.

While he was drafted by the NFL after college, Taylor began his business career following a short-lived attempt to play football professionally. As a college player, he was voted onto several All-Century teams, honoring him as one of the best college football players of all time. Even that sterling reputation, however, was not able to save the trophies and rings that marked that time from the saddening realities of financial hardship.

The Austin American-Statesman takes a look several cases where hospitals ignore a federal law stating that a living organ donor should not pay medical bills related to their donation and post-operation care.

The story starts with Philip Knisely. In 2008, Knisely donated one of his kidneys to a co-worker and father of three, Jose Vara. In weeks leading up to the surgery, Knisely was assured that, per federal law, he and his insurance company wouldn’t be billed. Those costs would go to the recipient’s insurance company or Medicare. Instead:

Knisely, a 53-year-old tax analyst for the state comptroller’s office, has received numerous notices that his insurance company was billed thousands of dollars by the hospital, doctors and other medical providers for treatment of post-surgery complications such as pancreatitis, an inflammation of the pancreas. Knisely said he also has been billed directly several times and has been contacted by a collection agency because he wouldn’t pay.

“I’ve been appalled about how this has been handled,” he said.

The American-Statesman outlines several other cases with similar outcomes. In some cases, a living organ donor has even been dropped by their insurance or denied care on the grounds that their donation constituted a “pre-existing condition.”

One woman in Texas who donated a part of her liver to her sister had to provide her insurance information to get pain medication. She later received a bill that should have gone to someone else. In many cases, the newspaper says, organ donors are paying out-of-pocket for bills they should not have received in the first place.

The advice of one of the organ donors: Take a notepad with you. This is good advice for anyone seeking medical help. Ask questions. Get treatment and billing information up front and in writing. Read your medical bills closely.

Serious medical debt can affect anyone, but there are laws in place to protect organ donors. Don’t get stuck with someone else’s bill.

The move comes as the business property market continues to decline after several slow years. Many

Many U.S. banks have been hurt by losses on commercial real estate loans. High unemployment means consumers have less to spend forcing many businesses to close. Now, however, fewer businesses are expanding or even stepping up and filling vacant space, leaving a glut of business property in many places across the country.

Many developers have been forced to default on loans because they can’t afford to pay them back. Capmark, for example, lost $1.6 billion last quarter in revenue. The company could have lost a lot more revenue if not for some planning that allowed them to set aside $345.8 billion to cover any future loan losses.

Capmark listed their debt at $21 billion and assets at $20.1 billion. The company is hoping to reduce its debt while maintaining their daily operations.

President and CEO Jay Levine said in a press release: “We view this reorganization process as an unfortunate but necessary response to recent unprecedented conditions in financial and commercial real estate markets which presented a significant challenge for Capmark and similarly situated finance companies.“

Capmark recently entered an agreement with a company owned by Warren Buffet Berkshire Hathaway and Leucadia National Corp called Berkadia III LLC. The deal is for Capmark to sell its North American servicing and mortgage banking operations to the company.

Since the company filed Chapter 11 bankruptcy protection, it will now receive $415 million and a $75 million note in the deal with Berkadia. If the companies completed the deal outside of bankruptcy protection, Capmark would have received a lesser payment of $375 million in cash.

Capmark claims that its bank – Capmark Bank – is not a part of the Chapter 11 bankruptcy protection filing, according to a MSNBC report. The bank recently received $600 million in new equity from Capmark Financial. The bank will continue its operations as normal and keep serving customers.

Capmark – at this point – has more than $500 million in cash to support its daily operations. The company said they have enough liquidity to pay for vendors and their services as well employees salaries and their benefits.

Get more information on chapter 7 bankruptcy and business filings.

The median income is the center line of incomes in your state. Each year, the US Department of Justice releases the median incomes to be used in evaluating Chapter 7 eligibility. Essentially, you should be eligible to file Chapter 7 if your annual income is at or below the state median.

On Nov 1, these new incomes go live, and they may affect whether you can file Chapter 7 bankruptcy.

In most states, the changes are minor, with the incomes moving up or down by only a few hundred dollars.

View the new state median income tables.

But in some states, the median incomes have been adjusted by several thousands of dollars. If you weren’t eligible to file last year, it’s possible that you are eligible this year.

The economic troubles of the past year have had a clear effect in several states. In places like Nevada, Arizona and Michigan, the state median income levels fell for single-earners and families.These states have been among the hardest hit during the current recession.

This is also a good time to remind people that while you must pass the means test in order to file Chapter 7 bankruptcy, the requirements are very inclusive.

The median incomes adjust for family size, and, in some cases, you may be able to earn more than $100,000 in a year and still be eligible to file.

In 17 states, a single earner may make $45,000 or more and still be eligible to file. For each non-earning family member, the income allowance typically goes up $10,000 or more.

So if you’re under the impression that you earn too much to qualify for Chapter 7 bankruptcy, you may want to take a look at the new numbers and think again.

The Chapter 7 means test is designed to keep people from abusing the system – not stop them from getting debt relief. If you’re dealing with out-of-control credit card bills, phone calls from creditors, massive medical debt or more, then you may want to take a serious look at how Chapter 7 bankruptcy might help.

You can take precautions. You can save and get insurance. But what if that’s not enough?

That’s the problem so many people face with their medical bills and medical debt. Even with medical insurance and a healthy savings plan, you could be put in a devestating spot if hit with tens of thousands of dollars in medical bills. Many people file Chapter 7 bankruptcy to help eliminate their medical bills.

But as details about new health care bills in Congress start to emerge, there are some encouraging signs, reports David Lightman for McClatchy newspapers.

Separate bills in the House and Senate would set a cap on annual out-of-pocket medical expenses. The limits, as they are in the bills now, would be around $5,000 for an individual and $10,000 for a family. Most medical costs would count towards this limit, says the story:

“Out-of-pocket expenses are expected to include co-payments for medical services and prescription drugs, deductibles and co-insurance.”

This type of regulation would be a welcome relief to people who find themselves owing tens of thousands of dollars in medical debt for reasons out of their control. Accidents and unexpected, unpreventable disease can ravage your financial life, too. And, sadly, insurance often doesn’t offer enough protection.

But, if the bills are passed as-is, everyone could get some protection. From the report:

“You get a lot of security for very little cost,” said Sen. Ron Wyden, D-Ore.

There are some loopholes, however. If you have a chronic or recurring disease you would most likely have to reach the maximum each year. Also, monthly premiums for insurance wouldn’t go towards the minimum cap, which means that the actual annual expense could still be upwards of $15,000 for some people.

The good news is these bills aren’t in their final stages yet, and you still have time to tell your elected officials how you feel.

The Wall Street Journal reports the company is seeking Chapter 11 bankruptcy protection to reduce its debt by two thirds and keep the company from going under.

In 2008, Fairpoint made a series of moves to increase their size and market share. Previously a rural market operator, they acquired Verizon Wireless Inc.’s landlines  in New England. That move came with $2.3 billion in debt, and some rapid growth, according to the New York Times.

The company quickly became the eighth largest communications company in the country as they jumped from 275,000 customers to almost 2 billion!

The company obtained Verizon and their large debt just before the credit market rules and regulations were tightened. So once the deal was made, the company struggled to refinance or obtain any new loans.

Coupled with customer migration from landlines to wireless service, the company was faced with new debt but fewer customers.

Without the ability to make payments on their $2 billion debt, FairPoint decided to seek bankruptcy protection.

The reorganization plan is designed to cut down FairPoint’s debt from $2.7 billion to about $1 billion. The company will not make any interest or principal payments while in chapter 11 bankruptcy protections. After the plan is complete, it will reduce its interest payments by $200 million to about $65 million a year.

The plan will provide lenders with full equity ownership so any profits made by the company will go to the lenders to pay off any debt. Lenders gave FairPoint until the end of October to reach an agreement for debt repayments before they begin to demand the outstanding loans.

After the company finishes with bankruptcy court about $1.1 billion of their debt will be converted to equity. This will transfer the equity ownership and control of the company to their lenders of the credit facility.

David Hauser, FairPoint Chairman and Chief Executive, said that the everyday operations of the company should continue as normal after they file for bankruptcy. Their financing will convert to a five year revolving credit facility once they are finished filing for chapter 11. This means they will not have a fixed number of payments for their credit. As of now the company has $46 million in cash to keep everything going.

Learn more about Chapter 7 bankruptcy.

Credit card holders from across the country recently reported:

• Sudden cancellation of cards, despite good credit history
• Available credit drastically reduced
• New and increased annual fees
• Higher interest rates – in some cases double or triple the original rate

If you’re on the receiving end of these new policies, there isn’t much you can do. Fortunately, someone with a little more pull is trying to take action against these practices.

Connecticut Senator Chris Dodd is calling for an immediate freeze on all credit card interest rates until the new laws take effect, reports CBS News.

Dodd is head of the Senate Banking Committee, but it’s unclear if this bill will get enough support to become law. But Dodd used harsh words when describing recent interest rate increases when he told CBS:

“At a time when families are struggling to make ends meet, jacked up rates can quickly create crushing debt,” Dodd said. “People need to be responsible with their money, but they shouldn’t be taken to the cleaners by outrageous rates.”

With so many credit card bill changes happening so quickly for so many people, this legislation would likely be welcomed by consumers. It could potentially save individuals thousands of dollars in interest payments, and may even keep some people from filing Chapter 7 bankruptcy.

We’ll keep you posted if this legislation gets legs.

From January through September of 2009, Chapter 7 filings in Massachusetts totaled 11,872. During the same period a year ago, there were only 8,777 filings.

This 35 percent increase represents the highest rate of people filing Chapter 7 bankruptcy since 2005, when the new bankruptcy laws were enacted.

According to Timothy M. Warren, Jr., CEO of the Warren Group, “a growing number of people are being forced into bankruptcy because job losses and salary cuts have made it difficult for them to pay their bills. Some have relied on credit cards to pay for even basic living expenses and now are seeking protection under bankruptcy law as a last resort.”

Chapter 7 filings rose despite a recent 23.4 percent drop in Chapter 13 bankruptcy filings. According to The Boston Globe “the shift is an indication those people who do file for bankruptcy may be deeper in debt or have less income to repay their bills.”

In fact, total bankruptcy filings – including businesses – have declined. The eight percent drop this past quarter is the first decrease in filings in the state in several years.

Warren told the Globe that fewer total filings may be a signal that some people have hope that the economy is turning around. This optimism may prompt them to try and hold on without bankruptcy for a little longer.

There is some concrete good news out of Massachusetts, too. The state experienced a decrease in foreclosure as, according to Warren, banks and mortgage lenders back off troubled home owners because of trial loan modifications and new foreclosure-protection laws.

For the past 22 years Odds has supplied costumes for hit TV shows and star-studded films. Located in Manhattan, some of their most high profile productions include the long-running “Law & Order” and the Oscar-winning Tom Hanks film “Road to Perdition.”

According to papers, Odds owes just over $275,000, almost one-third of which is back payment on rent. Odds owner Jeanette Oleksa said her rent increased more than $5,000 per month a few years back. When revenue fell last year she was unable to keep up.

A revenue drop of 10 percent is blamed on more productions using sponsor donated clothes than traditional costume shops.

As part of the Chapter 7 bankruptcy, Odds has been liquidating their supply of costumes and props since the summer. It should be a one-of-a-kind sale.

The company filed chapter 11 bankruptcy last March. Although the company is based in Missouri, they filed their plans in New York state. A judge in the Southern district there recently approved their plan, allowing the company to move forward with major restructuring plans to help them deal with more than $20 billion in debt, a recent New York Times report stated.

Charter Communications provides phone, Internet and cable television services in 27 states and has about 5.5 million customers across the nation. Charter was one of largest publicly traded companies in the United States.

Charter was unable to refinance or obtain new loans because of their debt, strict credit markets and a tough economy. The company’s goal is to shed $8 billion of their $21.7 billion debt through bankruptcy, giving them more flexibility.

The bankruptcy plan also shifts ownership from Chairman Paul Allen – who is also the co-founder of Microsoft – to Charter Communications shareholders. Mr. Allen will continue as the chairman and an investor, according to the St. Louis Business Journal.

Since the reorganization has been approved, Allen will no longer control the nominations and votes for the board of directors. How much control he will have with the future of the company will depend on how much stock he has after the plan is complete, said a report on CNN Money.

In the reorganization a number of different debt holders and bond holders will get new notes, equity and cash depending on seniority. Unfortunately, all shareholders will not get anything for their stocks, which are being canceled.

The reorganization hasn’t been all smooth sailing. JP Morgan Chase Co lent $8.2 billion to the company and  opposed the plan stating it violated their loan agreement with Charter.

The company stated in a press release, “The purpose of Charter’s financial restructuring is to strengthen its balance sheet in order to fully support the company’s operations and service its debt.” By filing for chapter 11, Charter is cutting their interest expenses and in the long run this might generate more cash flow to invest back into the business, the St. Louis Beacon reports.

Charter claims it has $800 million in cash. Along with its ability to sell assets without the price fluctuating and cash from operations the company will should have enough to see them through the bankruptcy and meet the companies’ needs.

The company continues to state that they will be better able to provide their services to all their customers and business operations will carry on as normal. Learn more about Chapter 7 bankruptcy.

The Humanity and Pets Partnered Through the Years bill, known as the “HAPPY Act,” aims to give pet owners a tax credit for their pets’ health care expenses, reports NPR.

Under the plan, up to $3,500 of pet medical care a year would be tax deductible. The bill was introduced by Republican Rep. Thaddeus McCotter of Michigan. He said the idea came about after he learned of pet owners having to abandon their pets because of financial hardship.

With much of the country still in economic turmoil, Rep. McCotter’s might make it easier for some pet owners to keep their companions.

This bill has a long way to go before being introduced into law, but if you’re interested in supporting it, simply contact your local Congressman and ask him or herto support the “HAPPY Act.”

And if you are debating whether it’s a worthy investment to help people keep their pets, I direct you to the hilarious cats of ICanHazCheezBurger.

Even hospitals aren’t immune to clerical mistakes. And, hospitals may try to overcharge you for simple items and procedures. The AJC’s Atlanta Bargain Hunter outlines some of the ridiculous overages reported at area hospitals, including:

• $600 for $14 IV dye
• $11 box of tissue
• $140 Tylenol
• $15 ice pack
• $30 thermometer

These charges have gotten so high, and medical bankruptcy so common, that the AJC reports of local consulting firms offering to help patients find excessive charges in their medical bills – for a fee.

These consultant firms, made up of former hospital administrators and nurses, charge a flat fee or a portion of the savings. This is a relatively new field, so it’s buyer beware when it comes to hiring a consultant firm.

A better idea is to go over your bill yourself or with a friend. If something doesn’t look right do some research. You can compare costs online or contact the hospital directly and ask for an explanation. Also, don’t assume that your insurance company will cover all charges. If they don’t pay then you could be stuck with the bill.

http://blogs.ajc.com/atlanta-bargain-hunter/2009/10/20/medical-bills-can-make-you-ill-avoid-phantom-expenses/?cxntfid=blogs_atlanta_bargain_hunter

They have hired several different law firms to aid them in the Chapter 11 reorganization and bankruptcy case. Experts are estimating the cost at $800 million to $1.4 billion, the New York Times reported.

So far they have paid their lawyers $402.9 million since the business collapsed in Sept 2008. The company hired attorney Kenneth Feinberg to set up a committee to review all the fees they have paid their attorneys thus far in their chapter 11 bankruptcy case. They want to determine if all the fees are fair and plausible.

Feinberg is familiar with high profile cases involving lots of cash. His credentials include setting up funds for September 11 victims and their families. He was then later hired by the U.S Treasury Department to review and monitor companies that received compensation from federal bailout money.

Lehman brothers is paying several law firms to handle their business. They hired Alvarez and Marsal to handle their contracts and help oversee operations during the reorganization of the business. The law firm said they needed 175 employees to work on the Lehman brother’s case during the reorganization. They were paid a total $169.3 million for their services, according to the Wall Street Journal.

Lehman’s bankruptcy firm Weil, Gotshal, & Manges charged $98.6 million in fees and expenses for their services. They work for $ 950 per hour. The firm Lehman Brothers hired to manage the unsecured creditors committee was paid $29.2 million for their services.

At this point, Feinberg’s committee found most of the fees charged by Lehman Brothers attorneys are legitimate. According to reports filed in court there has been only $223, 262 in inappropriate fees through January 2009. A small amount considering the millions upon millions in fees levied in the case so far.

Despite the large fees, there are some rules in place to limit the charges and fees attorneys are racking up, including:

• No car service for attorneys is allowed before 8pm
• Only $20 per person for working meals
• Written explanation for any workday billing more than 18 hours

With millions of dollars at stake and teams of lawyer at work $20 here and there adds up. It seems it takes a team of lawyers to monitor a team of lawyers.

Learn more about filing Chapter 7 bankruptcy, and what kind of work a lawyer may do for you and your case.