• Chicago Bankruptcy Attorney Critical of Hostess’s Business Practices

    Hostess Brands, Inc. filed a bankruptcy motion seeking permission to close business and sell its assets in a high profile case in November, which was accepted by the United States Bankruptcy Court for the Southern District of New York. However, the actions and financial decisions by Hostess executives have been brought to light and some former workers are not happy.

    Many Hostess employees lost their entire pension while assets were being sold off, and it was recently revealed that the judge allowed Hostess to use $1.75 million to pay bonuses to 19 executives. The act didn’t necessarily violate any federal laws because Hostess didn’t take money out of employees pensions, but rather failed to put money into their pensions without telling them.

    “It’s what lawyers call betrayal without remedy,” attorney James P. Baker told reporters-Baker is not involved in the Hostess case, but he specializes in employee benefits. “It’s sad, but that stuff does happen, unfortunately.”

    Some of Hostess’ creditors accused the company of raising and manipulating the salaries of executives in an attempt get around bankruptcy laws. The real victims are the employees who lost their pensions and will be struggling through hard times as a result.

    Please visit our site for more bankruptcy information .

    Benjamin Brand Services- Chicago bankruptcy lawyer .

  • Chicago Bankruptcy Attorney Weighs In on Looming Fiscal Cliff

    As Congress and President Barack Obama continue to negotiate offers to prevent falling off the “fiscal cliff” before the end of the year, legislators are beginning to grow impatient. The metaphorical “fiscal cliff” is an anticipated financial crunch expected to occur as the Bush tax cuts expire, government spending cuts are implemented and payroll taxes increase all at the same time. President Obama has refused to accept any deal from Republicans that will extend tax cuts for the wealthiest Americans.

    “I think we’re going over the cliff,” says Senator Lindsey Graham (R-S.C.).”This offer doesn’t remotely deal with entitlement reform in a way to save Medicare, Medicaid and Social Security from imminent bankruptcy

    . It raises $1.6 trillion on job creators that will destroy the economy and there are no spending controls.”

    Experts may never agree on how they think the expiring tax cuts may help or hurt our economy in the long run, but in the short term it appears many Americans will be tightening their belts for a while. If you have been struggling with debt, it may be a good time to explore your options. Contact our firm for a free consultation.

    Benjamin Brand Services- Chicago bankruptcy lawyer .