Involuntary Bankruptcy Filed on Kansas City Mortgage Company

A $49.8 millon creditor of NovaStar Home Mortgage Inc. filed an involuntary bankruptcy petition against the company in Kansas City this week.

The petition was filed January 23, 2008, in the U.S. Bankruptcy Court for the Western District of Missouri at Kansas City.

For more information see the article in the Kansas City Business Journal or the bankruptcy court’s website.

1923 Disney Bankruptcy in Kansas City

Did you know Walt Disney’s Missouri company, Laugh O Gram Films, Inc., was forced into bankruptcy in Kansas City on October 4, 1923? Fellow blogger, Rachel Foley of www.kcbankruptcy.com, and lover of all things Disney, proudly displays the bankruptcy documents in her office.

As Rachel says, “Walt went into bankruptcy with Oswald the Lucky Rabbit and came out the other side with Mickey Mouse.”

Debtor Audits Stopped (for Now)

The U.S. Trustee has stopped auditing debtors in bankruptcy cases. The Executive Office of the U.S. Trustee says Congress did not fund the budget for the audits in the 2008 appropriations bill. Alternate funding is being sought so the audits can resume, the EOUST reports.

This is good news for debtors whose advocates testified at a Congressional hearing in October 2007 that the audits were abusive to debtors because of overbearing auditors and erroneous reports of material misstatements in the bankruptcy papers.

See my post on the Bankruptcy Law Network for more details and the official statement by the U.S. Trustee.