Detroit Files Largest Municipal Bankruptcy Ever!

After the state of Michigan appointed an emergency financial manager, Kevyn Orr, to resolve the financial crisis of the city of Detroit without filing bankruptcy, Governor Rick Snyder approved the filing of the Chapter 9 bankruptcy petition for the city of Detroit on July 18. As of now, Detroit has $20 billion in long-term debt and its only option was to file for municipal bankruptcy. This is the largest Chapter 9 municipal bankruptcy petition in US history. Experts predict that it will not be the last. Orr tried laying out alternatives for dealing with the City’s long-term debts, including further change in pay rates and staffing, reducing interest rates, stretching out payment schedules and outright forgiveness of principal or refinancing but it was not enough to keep Detroit from seeking a bail-out from the government.

To learn more about Municipal bankruptcies, call the Law Offices of Michael H. Raichelson in Woodland Hills, California near Los Angeles.

Dolce and Gabbana Sentenced to Jail for Tax Evasion

Famous fashion designer Domenico Dolce and Stefano Gabbana were handed a suspended prison sentence of one year and eight months for hiding over one billion Euros, according the media. This order was given by the Milan, Italy court.  Dolce and Gabbana were initially investigated in 2008 for selling their brand to Luxembourg-based holding company Gado in 2004 to avoid declaring taxes on royalties of about 1 billion Euros ($1.3 billion). Rumors say the two will be appealing the court’s decision, but as of now they are looking at some prison time.

If you are in some tax trouble and you may need to get your tax affairs in order before it gets as bad as it is for Dolce and Gabbana, you can call the Law Offices of Michael H. Raichelson to find relief in all your tax resolution needs.