It is very true that a Chapter 7 bankruptcy case can be filed without having the full attorney fees paid up front. In fact, there are some attorneys that are willing to advance even the filing fees in certain circumstances.  However, for a valid Chapter 7 bankruptcy case to be filed, there are certain documents+ Read More The post Filing Without Full Payment, Ok. Filing Without Full Documents, Problemati appeared first on David M. Siegel.

Here at Shenwick & Associates, most clients come to us with concerns about debt, from either the perspective of a debtor or a creditor. This month, we’re going to take a look at the difference between how debts are treated by law and how debts are listed on a credit report. As with all actions (lawsuits), there is a statute of limitations on how long creditors can sue you to collect on a debt, get a judgment against you, and garnish your wages or levy against your financial accounts. In New York, the statute of limitations is six years, pursuant to section 213 (2) of the Civil Practice Law and Rules (CPLR) (for “an action upon a contractual obligation or liability, express or implied . . .”). However, once a judgment has been entered against you, a creditor has up to 20 years to enforce that judgment, pursuant to section 211(b) of the CPLR. However, there are two major caveats to be aware of regarding the statute of limitations:Sometimes, creditors and/or collection agencies will attempt to sue debtors even after the statute of limitations has expired. If you or an attorney that represents you fails to appear in court to claim that the statute of limitations on the debt has expired, the court may issue a default judgment against you, and then the 20 year period for enforcing the judgment starts running.If you acknowledge a debt (in writing and signed) and/or make a payment on a debt, that will restart the 20 year period for enforcing the judgment.With regard to reporting of debts on a credit report, rather than the state laws that govern the statute of limitations to collect on a debt and enforce a judgment, credit reports are governed by federal law, specifically the Fair Credit Reporting Act (“FCRA”), which is codified at sections 1681 through 1681x of title 15 of the U.S. Code. Under the FCRA, credit reporting agencies are required to remove information about a debt after seven years, regardless of the ownership or sale of the debt (i.e. to a collection agency) or whether or not you’ve acknowledged the debt. The seven year period commences 180 days after the last payment on the debt. However, there are also some exceptions to these general reporting requirements. They don’t apply to consumer credit reports to be used in connection with: (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more; (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more. Remember that consumers are entitled to free credit reports every 12 months from the three big credit reporting agencies (Equifax, Experian and TransUnion) from Annual Credit Report.com. For all of your questions about debts and credit reports, please contact Jim Shenwick.

It was the day before Thanksgiving.  A friend of mine called me in a panic.   She received a notification that her bank account was frozen by a creditor; she was to get a direct deposit of her salary in the next 2 days, which was two weeks before Christmas.  She needed to file bankruptcy fast in order to trigger the automatic stay (legal principle that means no creditor can take action to harm you). I stayed up until midnight that day in order to get the case filed for her.  Her business had gone bad and this was the fallout from it. Often, bankruptcy cases are filed on an emergency basis. In many instances, time may be of the essence and you need to file the case immediately (e.g. a creditor  has a judgment against you and has sent the Sheriff to your home or business; you have received a notice of garnishment of your wages or bank account by a taxing body).  If this firedrill can be avoided, it should be. Rushing into a case is pretty much never a good idea.   Filing the petition on an emergency basis only increases the costs of your case and there may not be enough time to research potential issues that may arise during the course of your case.   You may omit important creditors.  You may omit assets.  If the schedules are not accurate,  you will need to amend them and that costs more money to do.  Substantial, repeated amendments do not leave favorable impressions upon the U.S. Trustee or the Ch. 7 Trustee. A debtor is permitted to file a barebones “emergency “bankruptcy petition together with a list of 20 largest creditors. The full set of schedules must be submitted within 14 days, unless extended. Regardless of whether the case is an emergency filing or not, if you are an individual, you MUST complete pre-bankruptcy filing credit counseling course at least 24 hours before any case is filed. BOTTOM LINE: Talk to an attorney.  He or she can give you the questionnaire you need to fill out well ahead of time. He or she will also give you a list of documents you will need You can start gathering that info.  If the case is billed hourly, you will save yourself money by gathering up this information rather than having a paralegal do it. Pre-bankruptcy planning is always advisable for any individual or business.  You don’t want to throw good money after bad (meaning you don’t want to pay down debt that ultimately may be discharged). You don’t want to make preferential or fraudulent transfers.    Often, there are non-bankruptcy options, particularly for businesses (but that can be a topic for another blog post). DISCLAIMER:  This does  not constitute legal advice.  This post does not create an attorney client relationship.  Consultant an attorney for more information re: this topic.

  This is the bankruptcy case study for Michael M., who resides in Aurora, DuPage County, Illinois. Michael is currently being garnished for a hospital bill and is seeking protection under the bankruptcy code. He is inquiring as to whether or not he can file a Chapter 7 to stop the garnishment and yet keep+ Read More The post Bankruptcy Case Study For Michael M. appeared first on David M. Siegel.

Chapter 13 bankruptcy cases are difficult for the debtor as well as the attorney. The debtor has to fulfill a series of requirements prior to filing as well as additional requirements subsequent to filing. The attorney does the bulk of his work upfront and fights to get paid as the case progresses. In recent weeks,+ Read More The post It’s Getting Harder And Harder To Get Paid In A Chapter 13 Bankruptcy Case appeared first on David M. Siegel.

Gawker Media Files For Bankruptcy Gawker Media is a commercial online media company and blog outlet that was founded and owned by Nick Denton. Gawker came from humble beginnings in 2003. Gawker Media is the parent company for several very successful and popular weblogs including Gawker.com, Lifehacker, Deadspin, Kotaku, Gizmodo, Jalopnik, and Jezebel. With so much success in Gawker Media’s timeline, nearly forty five million dollars in revenue, and so many desirable weblogs under its reign, it is hard to wrap one’s head around the fact that the company filed for bankruptcy in 2016. What exactly is bankruptcy? Bankruptcy is the act of being bankrupt or completely broke. Filing for bankruptcy essentially pauses any standing debts that cannot be repaid. Chapter 11 bankruptcy is available for individuals, corporations, and partnerships. Chapter 11 bankruptcy reorganization has no limit on debt and large companies typically choose this type of bankruptcy to restructure debt. The person, or business, in debt typically can still have all their assets and operate their company under supervision. Chapter 11 bankruptcy is considered the most flexible of the bankruptcy chapters and is subsequently difficult to really define. Things weren’t always so bad for Gawker Media. Gawker Media has seen some financial success in the past. New York Magazine Jossip founder David Hauslaib estimated that Gawker.com had an annual advertising revenue of nearly one million dollars. The very low operating needs paired with advertising success led to Gawker Media boasting a healthy twenty million dollar revenue and an operating income of over two million dollars in 2010. Gawker Media continued to make good money without the need for investments from venture capitalist firms. Blogs aren’t making as much money as we think and lawsuits can ruin a successful business. Gawker’s founder Nick Denton has been quiet on the financial details of Gawker. He has, however, said convicting things about the financial profit of blogs. Of the matter, Denton has said on his personal website, “Blogs are likely to be better for readers than for capitalists. While I love the medium, I’ve always been skeptical about the value of blogs as businesses.” While weblogs may not be a capitalist’s goldmine, other matters contributed to Gawker’s demise. The media organization has dealt with its share of controversy which lead to a large amount of lawsuits being filed in order to destroy Gawker Media. Those lawsuits came from Silicon Valley billionaire Peter Thiel’s third-party funding. Thiel’s actions have raised serious concern about rich people tanking publications by paying for lawsuits that will lead to their demise. Gawker Media is known for their controversy, the big reason Denton decided to file for bankruptcy. Gawker Media is widely considered controversial for their content. In 2012 Gawker published a pornagraphic video of Hulk Hogan and Hogan’s best friend’s wife that subsequently led to a massive sixty million dollar lawsuit to be paid to Hogan for emotional distress. This lawsuit was the beginning for Gawker Media’s path to bankruptcy. Director Quentin Tarantino filed a copyright lawsuit in early 2014 against Gawker Media for the leak of his 146-page script for his film The Hateful Eight. Tarantino said he gave the script to a small handful of trustworthy colleagues and never to Gawker Media for use. Tarantino said in his lawsuit, “Gawker Media has made a business of predatory journalism, violating people’s rights to make a buck. This time they went too far. Rather than merely publishing a news story reporting that Plaintiff’s screenplay may have been circulating in Hollywood without his permission, Gawker Media crossed the journalistic line by promoting itself to the public as the first source to read the entire Screenplay illegally.” In 2013, Gawk Media and its founder Denton faced a Fair Labor Standards Act action brought by unpaid interns that worked for the company. The interns claimed that work they contributed to Gawker Media’s sites, including Lifehacker.com and Gawker.tv, directly led to substantial financial gains and were central to Gawker Media’s business model of internet publishing. They claimed that Gawker Media’s refusal to pay them at least minimum wage for their contributions and work violated state labor laws and the Fair Labor Standards Act. Some interns were paid as a result of the action. A staff writer for Gawker Media published a post in 2015 that attempted to out an executive for Conde Nast by writing about alleged text correspondence between the executive and a gay porn star. There was outrage over the attempt to out the executive and Denton removed the story after his managing partnership voted it was unsavory. Gawker Media was rumored to have paid the executive a sum to avoid a future lawsuit. In 2015 Gawker Media editors decided to unionize and joined the Writers Guild of America, East. Nearly seventy five percent of eligible employees voted in favor. While not entirely controversial, the decision to unionize led to public criticism of Gawker Media’s work conditions. What is Gawker’s next steps? Filing for Chapter 11 bankruptcy will save the company and keep it running as long as the company is sold to another entity, free of legal liabilities, at auction. This entity has been revealed to be Ziff Davis publishing group, who now owns Gawker Media and all of its brands. I am thinking about filing for bankruptcy. Who can help me? Making the choice to file for bankruptcy is a difficult decision, and nobody should make that decision without consulting an experienced lawyer. The talented bankruptcy attorneys at My AZ Lawyers, PLLC can help. My AZ Lawyers is a professional limited liability company that can offer professional services and match you with an experienced bankruptcy lawyer trained to offer niche expertise in bankruptcy and financial law. You don’t have to settle for poor law services, especially when your finances or business are at stake. Calling My AZ Lawyers and meeting with a bankruptcy lawyer could be the best decision you could make. Published By: My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post Gawker Media Files For Bankruptcy appeared first on My AZ Lawyers.

Gawker Media Files For Bankruptcy Gawker Media is a commercial online media company and blog outlet that was founded and owned by Nick Denton. Gawker came from humble beginnings in 2003. Gawker Media is the parent company for several very successful and popular weblogs including Gawker.com, Lifehacker, Deadspin, Kotaku, Gizmodo, Jalopnik, and Jezebel. With so much success in Gawker Media’s timeline, nearly forty five million dollars in revenue, and so many desirable weblogs under its reign, it is hard to wrap one’s head around the fact that the company filed for bankruptcy in 2016. What exactly is bankruptcy? Bankruptcy is the act of being bankrupt or completely broke. Filing for bankruptcy essentially pauses any standing debts that cannot be repaid. Chapter 11 bankruptcy is available for individuals, corporations, and partnerships. Chapter 11 bankruptcy reorganization has no limit on debt and large companies typically choose this type of bankruptcy to restructure debt. The person, or business, in debt typically can still have all their assets and operate their company under supervision. Chapter 11 bankruptcy is considered the most flexible of the bankruptcy chapters and is subsequently difficult to really define. Things weren’t always so bad for Gawker Media. Gawker Media has seen some financial success in the past. New York Magazine Jossip founder David Hauslaib estimated that Gawker.com had an annual advertising revenue of nearly one million dollars. The very low operating needs paired with advertising success led to Gawker Media boasting a healthy twenty million dollar revenue and an operating income of over two million dollars in 2010. Gawker Media continued to make good money without the need for investments from venture capitalist firms. Blogs aren’t making as much money as we think and lawsuits can ruin a successful business. Gawker’s founder Nick Denton has been quiet on the financial details of Gawker. He has, however, said convicting things about the financial profit of blogs. Of the matter, Denton has said on his personal website, “Blogs are likely to be better for readers than for capitalists. While I love the medium, I’ve always been skeptical about the value of blogs as businesses.” While weblogs may not be a capitalist’s goldmine, other matters contributed to Gawker’s demise. The media organization has dealt with its share of controversy which lead to a large amount of lawsuits being filed in order to destroy Gawker Media. Those lawsuits came from Silicon Valley billionaire Peter Thiel’s third-party funding. Thiel’s actions have raised serious concern about rich people tanking publications by paying for lawsuits that will lead to their demise. Gawker Media is known for their controversy, the big reason Denton decided to file for bankruptcy. Gawker Media is widely considered controversial for their content. In 2012 Gawker published a pornagraphic video of Hulk Hogan and Hogan’s best friend’s wife that subsequently led to a massive sixty million dollar lawsuit to be paid to Hogan for emotional distress. This lawsuit was the beginning for Gawker Media’s path to bankruptcy. Director Quentin Tarantino filed a copyright lawsuit in early 2014 against Gawker Media for the leak of his 146-page script for his film The Hateful Eight. Tarantino said he gave the script to a small handful of trustworthy colleagues and never to Gawker Media for use. Tarantino said in his lawsuit, “Gawker Media has made a business of predatory journalism, violating people’s rights to make a buck. This time they went too far. Rather than merely publishing a news story reporting that Plaintiff’s screenplay may have been circulating in Hollywood without his permission, Gawker Media crossed the journalistic line by promoting itself to the public as the first source to read the entire Screenplay illegally.” In 2013, Gawk Media and its founder Denton faced a Fair Labor Standards Act action brought by unpaid interns that worked for the company. The interns claimed that work they contributed to Gawker Media’s sites, including Lifehacker.com and Gawker.tv, directly led to substantial financial gains and were central to Gawker Media’s business model of internet publishing. They claimed that Gawker Media’s refusal to pay them at least minimum wage for their contributions and work violated state labor laws and the Fair Labor Standards Act. Some interns were paid as a result of the action. A staff writer for Gawker Media published a post in 2015 that attempted to out an executive for Conde Nast by writing about alleged text correspondence between the executive and a gay porn star. There was outrage over the attempt to out the executive and Denton removed the story after his managing partnership voted it was unsavory. Gawker Media was rumored to have paid the executive a sum to avoid a future lawsuit. In 2015 Gawker Media editors decided to unionize and joined the Writers Guild of America, East. Nearly seventy five percent of eligible employees voted in favor. While not entirely controversial, the decision to unionize led to public criticism of Gawker Media’s work conditions. What is Gawker’s next steps? Filing for Chapter 11 bankruptcy will save the company and keep it running as long as the company is sold to another entity, free of legal liabilities, at auction. This entity has been revealed to be Ziff Davis publishing group, who now owns Gawker Media and all of its brands. I am thinking about filing for bankruptcy. Who can help me? Making the choice to file for bankruptcy is a difficult decision, and nobody should make that decision without consulting an experienced lawyer. The talented bankruptcy attorneys at My AZ Lawyers, PLLC can help. My AZ Lawyers is a professional limited liability company that can offer professional services and match you with an experienced bankruptcy lawyer trained to offer niche expertise in bankruptcy and financial law. You don’t have to settle for poor law services, especially when your finances or business are at stake. Calling My AZ Lawyers and meeting with a bankruptcy lawyer could be the best decision you could make. Published By: My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post Gawker Media Files For Bankruptcy appeared first on My AZ Lawyers.

Death Row Records Files For Bankruptcy Death Row Records’ saga of financial issues that has plagued the label since the early 2000’s might finally be coming to an end this year. Reports claim that the current owner of the label, WID Eawake Entertainment Group Inc., is filing for bankruptcy and wants to sell Death Row Records in order to save the company. What exactly is bankruptcy? Bankruptcy is a legal term. When a person or business entity accumulates a large amount of debt that they cannot pay back, they may file for bankruptcy. Typically a debtor will hire a lawyer to help add up the total amount of assets the filer has and how much accumulated debt they owe. If it is clear that the debtor cannot pay back the debt, then they can proceed with filing for bankruptcy. If successful, all debts the debtor owes will cease. Bankruptcies typically stick to your credit for ten years and make it difficult to get loans, credit cards, a house, car, etc. So only proceed with filing for bankruptcy if you are prepared to deal with the not so glamorous side of it. The history of one of the biggest record labels of the 1990’s Death Row Records was a record company founded by Dr. Dre, the D.O.C., and Suge Knight in 1991. The label featured and signed talented rappers and hip hop artists including Tupac Shakur, Snoop Dogg, Dr. Dre, The Outlawz, The Lady of Rage, MC Hammer, Young Soldierz, Sam Sneed, LBC Crew, RBX, Michel’le, Jewell, Danny Boy, DK Quik, O.F.T.B., Nate Dogg, and many others. In its hayday Death Row Records was making nearly one hundred million dollars a year. After the tragic death of beloved rapped Tupic in 1996, many of the above mentioned artist left the label but Death Row Records was still able to stay afloat. How could such a powerful record label go bankrupt? Death Row Records first filed for bankruptcy in 2006 with claimed debts exceeding nearly a hundred and thirty-seven million dollars and over four million dollars in assets. Warner Music group bid twenty five million dollars for all of Death Row Records’ musical assets. In 2009, Death Row Records was auctioned to the development and entertainment company WID Eawake Entertainment Group Inc. for nearly eighteen million dollars. Everything remaining in the Death Row Records office was also auctioned off, including the eponymous Death Row Records electric chair worth nearly three thousand dollars. Since the sale in 2009, Death Row Records continued to put out material found in archives, including B-sides and unreleased tracks from artists including Snoop Dogg and Danny Boy. The management from WID Eawake Entertainment Group Inc. has tried to improve the image of Death Row by keeping their promise to pay royalties to the artist, songwriters, and producers that contributed commercial releases to the label. However, WID Eawake Entertainment Group went bankrupt some time in 2012 and started looking for an entity to purchase the Death Row Records label in order to buoy their own company. Now the legacy of bankruptcy around Death Row Records seems to be over with. Since the sale in 2009, former Death Row Records artists continue the claim the label owes them an insane amount of money. Snoop Dogg is owed two million dollars, Nate Dogg is owed nearly five million dollars, and Dr. Dre is owed around eight million dollars. Suge Knight claims that he is owed nearly a ridiculous one hundred and forty four million dollars. The only artist to ever have been paid by the label was the late Tupac Shakur. The seventy five thousands dollars he received went to his mother’s estate. The final bankruptcy report being filed by WID Eawake Entertainment Group is set to be completed this year and artists aren’t expecting any money to come their way. The final report will likely be signed by a judge and the once huge Death Row Records will be totally defunct. I think I want to file for bankruptcy but I don’t want to make any mistakes! Help! If you want to file for bankruptcy on your own, chances are you may be making a not so wise choice. It is easy to make small mistakes that could lead to getting into trouble for bankruptcy fraud. The fantastic bankruptcy lawyers at My AZ Lawyers, PLLC will walk you through the steps of bankruptcy filing and can help you avoid mistakes. A bankruptcy lawyer should be experienced, have specialized expertise in the area of bankruptcy and financial law, and fight for your needs. Call My AZ Lawyers today if you want a bankruptcy lawyer that will fight to help you. Published By: My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post Death Row Records Files For Bankruptcy appeared first on My AZ Lawyers.

   Judge Delano ruled in favor of my client, the ex-spouse of the debtor, allowing a secured claim of $50,000. In re Goesel, No. 8:15-BK-05591-RCT, 2016 WL 3085979 (Bankr. M.D. Fla. May 31, 2016).  The prepetition marital settlement agreement, incorporated in the divorce judgment required the debtor to pay $50,000 to the ex-spouse for the joint real estate they owned, or if not paid within 30 days of the divorce, ordering the property sold with the first $50,000 paid to the ex-spouse.  The Marital settlement agreement provided that the divorce judgment shall constitute a lien on the property until paid with interest.  The agreement required the ex-spouse to execute a quit-claim deed to the property to be held by her attorney until the $50,000 was paid.    The Debtor objected alleging that the claim was based on a property settlement, and was therefore dischargeable in the chapter 13.  Debtor alleged that the entry of a divorce judgment was insufficient to create a lien on the property Debtor also alleged that the lien was avoidable under 11 U.S.C. 522(f)(1)(A).    The Debtor's initial argument is that Florida Statute §55.10 requires the recording of a lien to be effective.1   Judge Delano rejected this argument, finding that in Dyer the ex-spouse had no interest in the property other than the judgment purportedly creating the lien.  In Butler, the property had been owned tenancy in common, and the ex-spouse was attempting to enforce the judgment lien against the debtor's own 1/2 interest in the property.  In Goesel, the ex-spouse is enforcing the judgment as a lien against her own interest in the property as awarded in the divorce.   The argument that the lien could be avoided under §522(f)(1) also failed.  The Debtor argued that the Court's decision in In re Lowe, 250 B.R. 422 (Bankr.M.D.Fla.2000) supports allowing avoidance of the lien under that section.  However, in Lowe the Debtor had been the sole owner of the property prior to the marriage, and the ex-spouse was again attempting to enforce a lien against property solely owned by the Debtor.  Again Judge Delano distinguished this as Ms. Goesel's ownership interest in the property is the functional equivalent of a security interest in the property.   The fact that a quit-claim deed had been signed to the debtor did not change the result, since the deed was never delivered to the Debtor. Mattox v. Mattox, 777 So.2d 1041 (Fla. 5th DCA 2001). ("delivery of a deed by the grantor and acceptance by the grantee are essential to the transfer title").   Note this case is on appeal, but Judge Roberta Colton (who took over the case subsequent to the order) has denied the Debtor's motion for stay pending appeal. 1 Citing Dyer v. Beverly & Tittle, P.A., 777 So.2d 1055 (Fla. 4th DCA 2001); Butler v. Butler, 870 So.2d 239 (Fla. 2d DCA 2004). Michael Barnett www.tampabankruptcy.com

“American Idol” Producer Files Bankruptcy After Show’s Last Episode Core Media Group files for Chapter 11 Bankruptcy Sometimes even successful people and companies run into financial problems. Core Media Group, the company behind hit TV shows American Idol and So You Think You Can Dance filed for bankruptcy protection in federal court only days after the final episode of the hit show American Idol. Fox’s television show, American Idol , once a huge profit maker and ratings topper for FOX, averaged more that 20 million viewers in seasons starting in 2003 (According to Nielsen ratings tracker). So how is it that the company responsible for of a top-rated show (8 consecutive seasons) that reached almost 31 million viewers in 2006 needs to file bankruptcy? All good things come to an end and Idol’s popularity and audiences plummeted and it created financial perils for Core Media Group. The company Core Media Group, founded 10 years ago, filed Chapter 11 bankruptcy in Federal Bankruptcy Court in New York, claiming it has not found a way to replace the revenue lost when hit American Idol’s ratings and subsequently income declined. Filing Chapter 11 bankruptcy does not mean the end of Core Media Group or that American Idol won’t ever come back. Chapter 11 bankruptcy allows a company to re-organize it’s debts and work with it’s creditors. (Chapter 11 bankruptcy is intended primarily for the reorganization of businesses with heavy debt burdens). Core Media Group should be able to continue operations and come out of this bankruptcy filing in a far better financial situation. In it’s bankruptcy filing, Core Media Group divulged that it owes approximately $400 million in debt to creditors, including individuals such as Simon Fuller (the creator of American Idol), and other parties like Sony Music Entertainment. The company also owes money to third parties. Core Media Group is claiming $73 million in assets, but less than $10 million cash on hand. A demand for payment in April from the aforementioned, Fuller, was a major contributing factor in the decision to file bankruptcy. The president of Core, Peter Hurwitz, in a statement about the Chapter 11 filing, cited American Idol’s recent failures as major reason for filing bankruptcy. According to Mr. Hurwitz, “Despite its long-running success, however, the company has recently experienced deterioration in its financial performance, primarily attributable to the decline in ratings for American Idol and the corresponding decline in revenues from IDOLS- related broadcast fees, international tape sales for rebroadcasts, touring fees, sponsorships and IDOLS- related merchandise sales.” As goes American Idol so goes Core Media’s profits. After having huge success, ratings fell hard. By the final season, American Idol was no longer America’s top rated show not too mention it wasn’t even number one with it’s own network. The show Empire grabbed higher ratings for FOX. The final episode aired in April 2016. Core Media Group claims that its capital structure is now “unsustainable,” as it is not able to replace a show and a money maker like American Idol. Now that the show is over, evidently Core is thinking about some restructuring and the Chapter 11 bankruptcy filing is a first step. Published By: My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post “American Idol” Producer Files Bankruptcy After Show’s Last Episode appeared first on My AZ Lawyers.