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A report this week from Detroit’s emergency manager says the downtrodden city is completely broke and may soon have to file for bankruptcy, according to the Associated Press.
The report, a 41-page analysis that aimed to portray a realistic picture of the city’s finances, said Detroit is on the verge of financial collapse, which would lead to lost paychecks for city workers, deep service cuts, and the loss of pension benefits.
And Kevyn Orr, the city’s emergency manager, believes that Detroit’s only remaining option could eventually be a trip to bankruptcy court.
Detroit May Soon File for Municipal Bankruptcy
As the city teeters on the brink of financial collapse, Orr has been given the unenviable task of negotiating deals with Detroit’s numerous creditors.
But James McTevia, a financial expert in Detroit, believes that Orr may head to bankruptcy court when he “gets his back against the wall and he can’t meet payroll.”
If such a dire scenario does happen, Orr would be left with few options besides seeking the protection of a bankruptcy judge.



Posted 5 days 18 hours ago

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In Tampa this afternoon arguments will be heard in the Casey Anthony bankruptcy case as to whether or not Casey Anthony's life story can be considered property or not.
Last month, Stephen Meininger, the bankruptcy trustee handling Anthony's case, filed a motion that essentially said her life story could be used to pay her off her debt.
In the motion, "the Property" included details of Anthony's childhood as well as the disappearance and death of her daughter, Caylee.
Anthony's attorneys disagree on the basis that such a thing would be invading her constitutional rights and "private thoughts." They say the motion "should be denied because the 'property' that the Trustee seeks to sell does not exist."
Meininger thinks auctioning off Anthony's story to the highest bidder would best maximize the value for those Anthony owes in her bankruptcy filing, listing over $792,000 in debt.
Anthony has been unemployed and living with friends since she was acquitted of her daughter's death in 2011. She has never shared her side of the story.



Posted 6 weeks 19 hours ago

With the top 1% of earners in the United States bringing home an average of $16.4 million annually, how many mortgages or student loans could the average "one percenter" erase?
how much debt can wealth of one percent erase
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<a href="http://www.totalbankruptcy.com/blog/wealth-of-the-one-percent-jzbdg" target="_blank" title="The Wealth of the 1%: How Much Debt Could it Erase?"><img title="how much debt can one percent's wealth erase" src="http://assets.totalbankruptcy.com/infographics/wealth-of-the-one-percent.png" border="0" alt="one percent wealth how much of debt can it erase"></a> from <a href="http://www.totalbankruptcy.com" target="_blank" title="www.totalbankruptcy.com">Total Bankruptcy</a>
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Posted 7 weeks 5 days ago

The top 1% of Americans earn an average of $16.4 million every year. How much of the average credit card debt or the national debt could this wealth eliminate?
the debt of many and the wealth of few
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<a href="http://www.totalbankruptcy.com/blog/wealth-of-few-debts-of-many-jzbdg/" target="_blank" title="The Wealth of Few, the Debts of Many"><img title="debts of many and wealth of few" src="http://assets.totalbankruptcy.com/infographics/wealth-of-few-debts-of-many.png" border="0" alt="wealth of few debt of many"></a> from <a href="http://www.totalbankruptcy.com" target="_blank" title="www.totalbankruptcy.com">Total Bankruptcy</a>
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Posted 7 weeks 5 days ago

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It's tax time and you're getting ready to file your taxes. Have you had any debt forgiven this year? How much debt? Have you thought about how that affects your taxes?
Many people do not realize that forgiven debt is sometimes taxable income. Now, there are exceptions to every rule but it is important to look into if you had debt forgiven last year and what that could mean.
Certain types of forgiven debt are exempt from Federal taxes. Those include but may not be limited to:

Other forgiven debt, specifically if you saved over $600, may be considered taxable income according to the IRS. This must be claimed on your tax return, otherwise the IRS has grounds to come after you.
Credit and debt collectors are required to file 1099-C forms with the IRS for forgiven debts of $600 or more. Some collectors will send a copy of the form to their customer but it is not required that they do so.
The 1099-C is a very complicated form and it is important to double-check the form before submission to verify that all the information is correct.



Posted 8 weeks 1 day ago

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March Madness is in full swing now and gamblers' wallets across the country are a little lighter as they wait in anticipation to see how their brackets play out.
Whether you're a regular college hoops enthusiast or not, it has been projected that over 100 million people will take part in the "bracket" sensation that encompasses March Madness.
It has been estimated that those 100 million people will be collectively gambling approximately $12 billion on this NCAA tournament.
Based on the government's census calculations from 2012, the amount of money spent on gambling during this year's March Madness could have paid off over 2.6 million people's credit card debt at $4,554.97 each!
With approximately 191 million credit card holders in 2012, the credit card debt was projected at $870 billion.
Is it even worth asking ourselves why gamble when we could pay off some of our debt?
March Madness is its own world. It's a distraction from our lives. It brings us highs and lows. It brings people together. It pulls people apart. It pits people against each other. All in all, it is great fun.



Posted 8 weeks 4 days ago

Last year, the United States saw ecommerce spending jump to $194.3 billion, up 16.1% from $167.3 billion in 2010. Americans in general are definitely online shoppers, but which type of online shopper are you?
what's your online shopping style
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<a href="http://www.totalbankruptcy.com/blog/type-of-online-shopper-jzbdg/" target="_blank" title="What Type of Online Shopper Are You?"><img title="what kind of online shopper are you?" src="http://assets.totalbankruptcy.com/infographics/online-shopping-style.png" border="0" alt="what type of online shopper are you?"></a> from <a href="http://www.totalbankruptcy.com" target="_blank" title="www.totalbankruptcy.com">Total Bankruptcy</a>
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Posted 11 weeks 15 hours ago

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In 2008, the American people were faced with an abrupt request on the part of then-Treasury Secretary Henry Paulson to invest $700 billion toward bailing out some of the nation’s largest banks. Without this bailout, the American people were told, their entire economic system would soon be crippled or destroyed.
Naturally, the Bush Administration and legislative branch jumped on the threat and invested the requested funds. But could it happen again? Is anything keeping big banks from failing now?
Dodd-Frank
The “Dodd-Frank Wall Street Reform and Consumer Protection Act” was enacted in 2010 and contains some sixteen major reforms to regulate banks deemed “Too Big to Fail.” One of the changes outlined in Dodd-Frank has to do with placing a big bank into a state of “receivership” following quantitative failure.
This provision of Dodd-Frank effectively grants the United States government full authority to take over a big bank should it teeter toward failure. This practice represents a massive increase in authority.
Prior to the recession of 2008, the United States government was only allowed to overtake certain subsidiaries within any given company. Now, the government can overtake and overhaul most of the holdings of a company should it fail.



Posted 12 weeks 5 days ago

The Center for Copyright Infringement (CCI) began implementing a less stringent policy regarding Internet piracy in October of 2012. But lawmakers and media companies have not always treated pirates with kid gloves.

In this infographic, we'll look at some of the penalties for downloading music and how they've even forced one young adult into considering filing for bankruptcy.
penalties for downloading music are extremely high



Posted 12 weeks 6 days ago

People talk about the shrinking of the middle class, but what exactly is it they’re referring to? How has the middle class changed in recent years?
the middle class decline
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<a href="http://www.totalbankruptcy.com/blog/the-decline-of-the-middle-class-jzbdg/" target="_blank" title="The Decline of the Middle Class"><img title="middle class decline" src="http://assets.totalbankruptcy.com/infographics/the-decline-of-the-middle-class.jpeg" border="0" alt="decline of the middle class in america"></a> from <a href="http://www.totalbankruptcy.com" target="_blank" title="www.totalbankruptcy.com">Total Bankruptcy</a>
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Posted 15 weeks 4 days ago