Questions about debts or bankruptcy? Call Doug Beaton, a local specialist in American bankruptcy law.

The Associated Press has come out with a new poll showing that 46% of Americans are experiencing a significant level of stress caused by too much debt.

Families with total incomes under $50,000 per year have seen a sharp increase in their stress levels, although only a very small increase in actual debt levels. For those who make more than that, the situation is reversed — they are paying down debt slowly, but stress levels remain the same.

This poll fairly well replicates the situation of many consumers here in the Merrimack Valley who might be thinking about bankruptcy — people aren’t feeling very optimistic because the recovery just doesn’t feel like a recovery, especially job-wise: “It doesn’t feel much like a recovery to many people. Unemployment is at 9.9 percent. Many with a job have seen paychecks shrink. A growing number of people are at risk of falling into foreclosure, and only those with good credit can get a new loan.”

And although the Federal Reserve says that consumers are cutting debt at the fastest rate in almost 60 years, those numbers are skewed, because many people are “cutting debt” by walking away from mortgages and other underwater loans.

By Doug Beaton

If you are having a tough time financially, file this in the “misery loves company” folder.

Actress and bon vivant Lindsay Lohan apparently owes $600,000 on her credit cards and can’t even pay her rent. Add to that a reported drug abuse problem and a decline in demand for her acting services, and the outlook isn’t very pretty.

Allmand and Lee’s Texas bankruptcy blog reports that “One credit card company is going to discuss a payment plan for Lindsay.” “But if she doesn’t have the income and can’t make her payments, they are prepared to sue her.”

The Texas lawyers think bankruptcy might be a helpful option for Lohan, even if she gets caught up on the rent: “If she has suffered a drastic reduction in income, she is not unlike other ordinary Americans who have faced job losses and reduced salaries. If the credit card company is able to successfully sue her, she could use bankruptcy to protect her assets including her income from club appearances and any royalties she is receiving from other past jobs. However, bankruptcy will not be able to fix any drug abuse problems or money management issues that the actress has. But bankruptcy will allow her the peace of mind and flexibility she may need to focus her energy on resolving more personal issues that could be fueling her financial crisis.”

By Doug Beaton

The Texas Rangers filed for bankruptcy on Monday, making them the only current major league baseball franchise  seeking court protection from creditors.

The Chapter 11 filing was pre-planned, seemingly with the intention of clearing the way for a sale of the team to a new ownership group that includes former Ranger and Hall of Famer Nolan Ryan.

Among the top 30 unsecured creditors is Alex Rodriguez, who is owed $24.9 million in deferred compensation six years after he was traded to the New York Yankees.

A-Rod shouldn’t have too much to worry about, however, as compensation claims typically receive the highest payback priority in a bankruptcy case, and the Rangers have announced that they have received debtor-in-possession financing to keep the club afloat until the sale to Ryan and his partners can be finalized later in the summer.

Ryan and his partners said they do not think the bankruptcy case will keep the team from competing for top players in the trade market that runs through July 31st.

By Doug Beaton