Michael Vick to Emerge from Successful Chapter 11 Bankruptcy

NFL quarterback Michael Vick has made arrangements to pay back the last of almost $20 million in debts to dozens of creditors, the Virginian-Pilot reported today. Vick's bankruptcy records show that he has paid about 75 percent of his debts. With this fall's salary from the Eagles and his endorsement income, he should be able to close out his case within months, his attorneys said. Kara Bruce, an associate professor of law at the University of Toledo Law School and the scholar in residence at the American Bankruptcy Institute in Alexandria, called it "impressive" for anyone to emerge from chapter 11 with creditors paid in full. While statistics are not available, "generally speaking, it's a rare situation," she said. "For most people, there's nothing to sell."

Source: American Bankruptcy Institute Newsroom, August 30, 2013
http://news.abi.org/headlines/michael-vick-to-emerge-from-bankruptcy

Tax Consequences of Loan Repayment Programs

Normally, the cancellation of debt is considered income for tax purposes. However, certain types of debt discharge is excludable for tax purposes. Student loan debt forgiven through the Public Service Loan Forgiveness program is considered excludable and participants do not face federal tax liability when a student loan is forgiven under this program. Publication 970, § 5, Internal Revenue Service (2012).

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CFPB "Public Service & Student Debt" Benefits Report

CFPB estimates that over 25% of the workforce is engaged in "public service" and eligible for a federal loan forgiveness program.

Check out the report here:  http://files.consumerfinance.gov/f/201308_cfpb_public-service-and-student-debt.pdf

For Oregonians Facing Creditor Harassment

Check out Michael Fuller's consumer protection blog at www.underdoglawblog.com

Resources for Residential Tenants in California

The California Tenant's Guide published by the state of California is a great resource for tenants who wish to know more about their rights under California law (last updated July 2012).

Free PDF at: http://www.dca.ca.gov/publications/landlordbook/catenant.pdf

The online publication also includes information about ordering physical copies as well.

Tupac’s Mother Settles Bankruptcy Claim Against Suge Knight, Founder of Death Row Records

http://blogs.wsj.com/bankruptcy/2013/08/27/tupacs-mother-settles-claim-against-suge-knight/

Rapper DMX Files for Chapter 11 Bankruptcy

Just days after his arrest on suspicion of DWI, famous rapper DMX filed for chapter 11 bankruptcy protection.

DMX filed in his case in the Bankruptcy Court for the Southern District of New York in Manhattan. He listed less than $50,000 in assets and $10 million in debt. He owes $1.24 million in child support and more than $21,000 on an auto lease. His primary asset is a 50% interest in property located in Mount Kisco, New York.

DMX is most well-known for his 1990's hit "Party Up (Up in Here)."

Source

The Wall Street Journal Bankruptcy Beat Blog, "Rapper DMX Files for Bankruptcy," Jacqueline Palank, July 30, 2013. http://blogs.wsj.com/bankruptcy/2013/07/30/rapper-dmx-files-for-bankruptcy/

Welcome to California Consumer Law Blog

The field of consumer law in California is massive.

http://www.dca.ca.gov/publications/legal_guides/m-1.shtml

The goal of this blog is to provide information about specific consumer law issues, relevant court decisions, and laws that affect consumers in California. This includes both state law and applicable federal law.

Because the body of consumer law is so great, this blog will attempt to focus on the following subject matter areas:

1. Federal Consumer Law (FDCPA, TCPA, FCRA, and TILA)

2. California State Consumer Law (FDBPA, RFDCPA, Consumer Legal Remedies Act)

3. Student Loan Issues (IBR, PAYE, Forgiveness, and Discharge)

4. Consumer Bankruptcy Law (Chapter 7, Chapter 13, Bankruptcy Violations)
5. Consumer Regulatory Agencies (CFPB, CA Department of Consumer Affairs)

This is my first blog, so please feel free to provide feedback and suggestions!