ABI Blog Exchange

A recap of the informed opinions (and the discussions they generated) on BankThink this week, including the downside of public banking and the vulnerabilities unaddressed by global regulators' bail-in plan for megabanks.

Read More from: BankThink

1 hour 26 min ago
In a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com discusses the SEC’s objection to SkyMall’s proposed bankruptcy sale. Read more about this and the SEC’s disclosure of a non-public investigation into SkyMall’s parent company here.
3 hours 27 min ago
In a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com discusses the financial hard times of Sabine Oil & Gas. Is a chapter 11 filing imminent?  Read more about the SEC filings here!
3 hours 29 min ago
A comic strip for the Credit Slips crowd from Stephan Pastis:Pearls Before Swine Comic Strip, March 06, 2015 on GoComics.com.

Read More from: Credit Slips

3 hours 37 min ago
It is understandable that nerves will run high at a bankruptcy creditors meeting. After all, the debtor is likely filing his first and only bankruptcy case in his life. He understands that he must appear in front of a trustee and be examined under oath with regard to the petition and schedules that were filed+ Read More The post Nerves Run High At Bankruptcy Creditors Meeting appeared first on David M. Siegel.
3 hours 46 min ago
Are you considering debt relief through a consumer credit counseling or debt consolidation service ? You may be surprised to learn that they can do more harm than good to your credit. Many times, bankruptcy is a better option, and you should always meet with a bankruptcy attorney to thoroughly discuss your personal financial situation in order to allow them to help you decide what is the best solution to your financial problems. In analyzing your particular situation, always consider if there is an alternative to filing bankruptcy. The decision to file bankruptcy is a difficult choice for many people to make. A bankruptcy will affect, in some fashion, your future credit. Bankruptcy, though, does not totally destroy your ability to get credit in the future. The decision to file bankruptcy must be carefully made in consultation with an attorney.
3 hours 56 min ago
Caesars Palace Hotel and Casino is seen in Las Vegas.
Zuma Press
A bankruptcy judge on Wednesday refused to disband an official committee of junior bondholders of Caesars Entertainment Operating Co. debt, a win for investors in the largest unit of the casino giant. Read the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Target Canada’s C$1.9 billion ($1.5 billion) debt is under court review, the Globe and Mail reports.

Read More from: WSJ.com: Bankruptcy Beat

4 hours 30 min ago
A new service from Cardtronics asks consumers to pay up to $10 a month for unlimited access to 5,000 of the company's ATMs. That may not sound like a great deal Â-- but it could have a lot of appeal among people who make use of alternative financial services.

Read More from: BankThink

5 hours 1 min ago
In our continuing review of key issues concerning schemes of arrangement, this second bulletin addresses issues of valuation, third party releases, voting by ultimate beneficial holders and amendments to schemes. Our first bulletin covered jurisdiction, stays on challenges in foreign courts, new money and the imposition of new obligations, and class composition. Our third bulletin will contrast schemes with US Chapter 11 proceedings. Scheme hot topics bulletin: Part II This series of bulletins assumes a certain level of background knowledge. For additional information, please see our recently-updated introductory guide to Schemes of Arrangement as Restructuring Tools.
6 hours 25 sec ago
Receiving Wide Coverage ... Taking Stock of the Stress Tests: All 31 banks subject to the Federal Reserve's stress tests had enough capital to survive the central bank's crisis scenario, but many in the media say this may not be the most reliable indicator of how banks would manage in a real recession. The problem is it's hard to predict what a crisis will actually look like, Stanford finance and economics professor Anat Admati tells the...

Read More from: BankThink

6 hours 33 min ago
In re Baber, 523 B.R. 156 (Bankr. E.D. Ark. 2014) – The debtors objected to a proof of claim filed on behalf of a mortgagee based on issues arising from assignment of the mortgage note by the lender that originated the … Continue reading →
8 hours 1 min ago
Elkhorn, Wisconsin residents seeking debt relief or a debt settlement company must heed the old saying, “If it sounds too good to be true, then it probably is.” Unfortunately, there are a lot of dishonest companies in this world and some of them hail from the State of Wisconsin. According to the Wisconsin State Court of Appeals, a Wisconsin debt settlement company must pay its customers back $4.2 million in debt settlement service fees. The Wisconsin debt settlement company of Morgan Drexen, Inc. advised its customers to stop paying all creditors. Instead, Morgan Drexen took the money and placed it into an account which Morgan Drexen controlled. Once a client’s “account” accumulated enough funds necessary to buy down debt, Morgan Drexen would negotiate settlements with its clients’ creditors, pay said creditors, and then pay themselves a fee for their service. Morgan Drexen, Inc. operated under this practice for five years, during which time they received $8 million from their Wisconsin client. They paid themselves $4.2 million, over half of all fund received. Morgan Drexen, Inc. was accused of operating without a license. They argued the case, but a hearing examiner ordered them to return the $4.2 million and pay an additional $1.89 million for breaking the law. The case went to the District II Court of Appeals. The Appeals Court ruled that the hearing examiner did not err in determining Morgan Drexen violated the law.

Read More from: Wynn at Law, LLC

23 hours 8 min ago
Our Examiners, a panel of some of the leading bankruptcy experts, weighed in this week on the topic of venue reform. And in more than a dozen responses, they agreed—the venue provisions of the bankruptcy code, as is, work well for businesses and creditors. Their opinions stand in opposition to those published in an op-ed by the now-retired Judge Steven Rhodes, who argued vehemently that this is an area of the law that needs changing. The debate also sparked comments and tweets from readers, many of whom agreed with the Examiners that this part of the code shouldn’t be changed. In the comments section of one of the posts, Christopher A. Ward called the venue fight “misguided.”

Read More from: WSJ.com: Bankruptcy Beat

1 day 55 min ago
“An attorney’s reluctance, or that of his assistant, to work after 6:30 p.m. one evening in order to meet a court-imposed filing deadline does not constitute excusable neglect.” – In re An In the next post in our series discussing the interplay between the fallibilities of computers and bankruptcy practice, we look at the deepest fear that so many of us have – if we have last-minute problems with electronic filing as a deadline approaches, will we be out of luck, hat in hand, begging forgiveness from our clients?  The Bankruptcy Court for the Central District of California says “yes!”
1 day 1 hour ago
Thanks to Epiq Systems, the latest monthly bankruptcy figures are out, and they show a 10.1% year-over-year decline. We now have had 52 straight months of year-over-year declines in the U.S. bankruptcy filing rate. The graph to the right shows the trend in year-over-year changes. There was a daily average of 3,422 bankruptcy filings in February, compared to 3,804 from the previous year. Total February bankruptcy filings were just over 65,000. (Daily averages are computed based on business days.) I forecasted approximately 800,000 bankruptcy filings for the 2015 calendar year, and the first two months of the calendar year suggested we are spot on that forecast. The first few months of the calendar historically see the highest filing rates of the year. January and February usually account for about 15.5% of the annual total, and extrapolating that historical pattern to the 124,052 filings so far in 2015 puts us right at 800.000 for the calendar year. (For new readers, reasons for the decline are explained in many of my posts collected here.)

Read More from: Credit Slips

1 day 2 hours ago
The subprime consumer lending business is booming. But lenders that think they have the risk-based pricing model figured out may be in for a rude awakening.

Read More from: BankThink

1 day 3 hours ago
With my attention drawn to other matters, my personal blogging has been light for the past month. One of the things that had my attention was the Caulkett case currently pending before the Supreme Court. The issue in Caulkett is whether a wholly underwater second mortgage can be avoided in a chapter 7 bankruptcy. Without any value to reach, a wholly underwater second would not seem to be an allowed secured claim within the meaning of section 506.

Read More from: Credit Slips

1 day 4 hours ago
Most people who file bankruptcy don’t want anyone else to know. Some of my clients try to hide their break for financial freedom from friends and neighbors. Others are worried about their boss finding out. Occasionally, someone will try to keep it from their mate. But trying to hide his bankruptcy nearly cost one client $103,000! Because he hid his bankruptcy filing from his accountant. It’s all about the tax When my client got his bankruptcy discharge, stripping off the junior lien on his house, the mortgage lender dutifully sent him a form 1099. The tax form correctly reported that $288,000 of debt had been forgiven in the last tax year. And my client delivered the 1099 to his tax preparer, who in turn said, That will be an extra $103,000 in tax, due and payable on April 15th. Only, once the tax preparer got the news about the bankruptcy filing, it wasn’t so. Debt forgiven in bankruptcy isn’t taxable A discharge in bankruptcy is the first exception to the standard tax rule that debt that is forgiven is treated as if it were cash income. When the discharge occurs by reason of a case under Title 11, the discharged debt is not taxable income.
1 day 4 hours ago
Authored by Jon Sacks, Scott St. Amand and Heather S. Nason, Jon Sacks, Scott St. Amand and Heather S. Nasonand Jon Sacks, Scott St. Amand and Heather S. Nason of Rogers TowersInvesting in commercial real estate is a pipe dream for all but the highest net worth individuals.  However, in July of last year, the Hard Rock Hotel in Palm Springs defied conventional real estate logic and sold a fifteen percent stake in their property to a group of investors.  Although groups of real estate investors, through more conventional models, such as REITs are increasingly more common, the Hard Rock sale was noteworthy because the money was raised using an unconventional method in commercial real estate: crowdfunding. Crowdfunding makes use of the easy accessibility of vast networks of friends, family and colleagues through social media websites like Facebook, Twitter and LinkedIn to get the word out about a new business and attract investors.  Crowdfunding has the potential to increase entrepreneurship by expanding the pool of investors from whom funds can be raised beyond the traditional circle of owners, relatives and venture capitalists.

Read More from: Florida Banking Law Blog

1 day 4 hours ago
A RadioShack store in San Francisco
Getty Images
RadioShack Corp .’s creditors ironed out the final details of a $285 million bankruptcy loan at a court hearing Wednesday amid indications that suppliers, landlords and other unsecured creditors will sustain significant losses in the retailer’s chapter 11 proceeding. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) A bankruptcy judge on Wednesday refused to disband an official committee of junior bondholders of Caesars Entertainment Operating Co. debt, a win for investors in the largest unit of the casino giant. Read the DBR article in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 day 4 hours ago

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