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Recent prosecutions against lenders accused of usury violations will test the government's use of a law more commonly known in organized crime cases.

Read More from: BankThink

1 week 4 days ago
Wall Street Journal So what if banks are too big to fail? Deposits at the big four commercial banks grew 2.1% to $.2 trillion in the first quarter – welcome news for banks despite a year-over-year decrease. Though their gains in deposits aren't quite enough to counter some of the more grim details of their first-quarter earnings, they show that the very least, depositors aren't fed up with the too-big-to-fail institutions. ...

Read More from: BankThink

1 week 4 days ago
Seven or Thirteen? 13 or 7? When you have a choice, how do you decide which chapter of bankruptcy works best? Usually, the choice is driven by the scope of the discharge and the kind of debts you have. More kinds of  debts are dischargeable in Chapter 13 and the automatic stay protects you for the 60 month duration of the case. So why did the client this week choose to walk out of Chapter 7 with fewer debts discharged than if he’d chosen 13? It’s all about his  future.  And who will get to share in his growing earning capacity. Chapter 7 over Chapter 13 On the surface, this client seemed a great candidate for Chapter 13, which is my favorite  bankruptcy chapter. Some of his debts were only dischargeable in Chapter 13;  in Chapter 7, he’d emerge still owing some debts from a divorce. So why choose the smaller discharge? Because his earnings were likely to double or triple over the life of a Chapter 13 case.
1 week 4 days ago
Until 2016, Kentucky was one of just a few states that had not adopted a model statute relating to fraudulent transfers.  As mentioned in a prior post on Kentucky’s statutory quirkiness, its statute descended neither from the Uniform Fraudulent Transfer Act (“UFTA”) nor the Uniform Fraudulent Conveyance Act (“UFCA”).  Effective this year, however, Kentucky is at the leading edge of uniform creditor avoidance statutes (KRS 378A), having become among the first 9 states (as of this writing) to adopt the new Uniform Voidable Transactions Act (“UVTA”).  I have written on UVTA generally, and will try to stay focused on how UVTA will likely change avoidance action practice for Kentucky practitioners.  Here are some highlights:

Read More from: Creditors' Sidebar

1 week 4 days ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37700638/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37700638/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37700638/smartcrop?height=853&width=1280" caption="The headquarters of SunEdison is shown in Belmont, Calif." credit="Reuters" placement="Inline" suppressEnlarge="false" ] A bankruptcy judge delayed solar-power company SunEdison Inc.’s request for an independent investigation into its collapse. 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.”) DBR reports in WSJ on SunEdison’s “yieldcos” looking to assert their separate status, noting to a bankruptcy just that they are solvent and separate from SunEdison.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
There is a familiar expression:  “The road to Hell is paved with good intentions!” I’d like to think that the individuals that came up with the concept of the reverse mortgage had good intentions.  The reality I see in my bankruptcy practice is elderly people, who are at risk of losing their homes, either because confusion on their part or intentional misrepresentation on the part of a lender. What is a Reverse Mortgage? You’ve all seen the ads.  Happy smiling couples enjoying the good life thanks to there reverse mortgage.  A reverse mortgage is a home equity loan that someone 62 years or older can take out and continue to live in their home.

Read More from: Bankruptcy Law Network

1 week 4 days ago
  The 11th Circuit Court of Appeals has held that Sovereign immunity and lack of jurisdiction bars the US District Court from reviewing the Florida Supreme Court's denial of admission of an applicant based on the applicant's prior chapter 13 bankruptcy and dismissal of such bankruptcy.  Uberoi v. Supreme Court of Florida, No. 15-12636, 2016 WL 1552370 (11th Cir. Apr. 18, 2016).  The applicant applied for admission to the Florida Bar in 2010. The Florida Board of Bar Examiners alleged she displayed a lack of candor in the admissions process.  It also alleged she was financially irresponsible based on delinquencies to various creditors and the dismissal of her 2007 Chapter 13 bankruptcy proceeding for failure to make payments.  After an answer by the applicant, the board recommended that she be conditionally admitted to the bar.  The Florida Supreme Court rejected this recommendation, citing her lack of candor and refusal to pay financial obligations. 1     The applicant then sued in Federal Court, asserting a violation of 11 U.S.C. 525(a), prohibiting governmental units from discriminating against someone solely because they are a debtor in bankruptcy.  She also alleged that the failure of the Florida Supreme Court to hold a hearing on her application violated her procedural due process rights.

Read More from: Tampa Bankruptcy

1 week 5 days ago
  Booted, Repossessed, Impounded Other than death, divorce and job loss, there is nothing worse than heading out to your car only to find out that it has been either booted, repossessed or impounded. If you find yourself in such a situation, you still have options to retrieve your car. The remedy is chapter 13+ Read More The post Car Impounded? You Still Have Good Options appeared first on David M. Siegel.
1 week 6 days ago
When I am meeting with clients to review and sign their bankruptcy petition, I always advise them that they will be required to attend a 341 meeting within a short time after the case is filed and prepare them for what to expect at the meeting. Often, my client’s reaction is one of fear. That’s understandable. They’re already stressed enough based on their financial woes and now I’m telling them they have to “meet” their creditors. Really? I tell these clients to relax. It’s not like that at all. The Bankruptcy Code requires that each person who files a bankruptcy case must appear for an examination where their creditors can ask questions about their situation. Either I or my associate will be present with the client at the meeting to make sure that things go smoothly and in accordance with the law and to protect the client from any creditor who might try to get out of line. These meetings aren’t usually contentious and in most instances last just a few minutes. Not all creditors will attend the meeting. The bankruptcy judge is never present and the 341 meeting is not a court hearing. Instead, the meeting is conducted in most states by the bankruptcy trustee assigned to the case. What Happens At a 341 Meeting?

Read More from: Bonds & Botes, P.C.

1 week 6 days ago
Long before daily talk of fintech, blockchain and APIs, the number of U.S. banking customers who used at-home services once amounted to the population of a small suburb.

Read More from: BankThink

2 weeks 2 hours ago
[wsj-responsive-image P="//si.wsj.net/public/resources/images/BN-NP655_SANBER_P_20160418181909.jpg" J="//si.wsj.net/public/resources/images/BN-NP655_SANBER_J_20160418181909.jpg" M="//si.wsj.net/public/resources/images/BN-NP655_SANBER_M_20160418181909.jpg" credit="Patrick T. Fallon/Bloomberg News" placement="Inline" suppressEnlarge="false" ] The city of San Bernardino, Calif., could get one step closer on Wednesday to getting out of bankruptcy after nearly four years. Judge Meredith Jury is scheduled to look over a description of the 77-page plan that shows how city leaders will cut the municipality’s biggest debts and increase services for its roughly 200,000 residents. The plan, if approved, would be sent to creditors for a vote. Judge Jury has rejected past proposals, but the latest version includes a key settlement with a European bank that once fought to protect future payments of $95 million for the bonds it bought. San Bernardino officials said they will make payments that add up to about $50.7 million over the next 30 years instead. San Bernardino stopped repaying the bonds once it filed for bankruptcy on Aug. 1, 2012, projecting it would run out of money in less than two months. The city that sits about 60 miles east of Los Angeles has suffered from double-digit unemployment and lower tax revenue from fallen property values.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 hours ago
February of 2016 Diane was named Outstanding Pro Bono Attorney of the Month by the Volunteer Lawyers Program. The Volunteer Lawyers Program is a joint project of Community Legal Services Inc. and the Maricopa County Bar Association. This program consists of lawyers who volunteer their time to provide legal assistance to low-income Maricopa County residents. Questions from Peggi Cornelius, VLP Programs Coordinator: 1) What motivates you to do community service? Those around me – both I my fellow volunteers and those who we are lucky enough to help. I am motivated by the energy of people like Pat Gerrich and Kevin Ruegg and cannot help but be affected by their enthusiastic commitment to our community. I am motivated to give more when I see the relief in the eyes of someone who knows their pay check will no longer be garnished or their sleep interrupted by obnoxious collection calls. It really is true that the more you give the more you receive. 2) How did you learn of the VLP and participate for the first time? I really do not remember. Most likely it would have been a referral from Kevin S. Ruegg, Arizona Foundation for Legal Services & Education. From that time she and Pat Gerrich (Community Legal Services) never let me out of their sight. 3) Describe pro bono work you’ve undertaken with VLP; Bar associations, courts, law schools, and/or other community service work?
2 weeks 2 hours ago
One of the great mysteries of debtor/creditor law is the community property discharge in bankruptcy. When only one spouse files bankruptcy in a community property state like California, the non filing spouse reaps bunches of benefits that creditors can’t imagine. Benefits that aren’t explicitly described in books about bankruptcy or understood by creditors. Those benefits start with the non filer’s wages being absolutely protected after bankruptcy from that person’s debts that existed when the case was filed. How can that be? frustrated creditors shriek. It’s community property law, is the reply. The   phantom discharge works like this. When one spouse files bankruptcy File bankruptcy in a community property state and all of a couple’s community property becomes property of the estate.  And, all of the creditors who have claims that can be collected from the community property are creditors in the bankruptcy case. So, if Jane files bankruptcy, and her husband Joe does not join the case, Joe’s creditors who have a claim on their community property can participate in the case.
All creditors of either spouse can collect their claim from community property.
2 weeks 4 hours ago
Muriel Siebert once said each woman has to fight a different fight for the greater progress of women. Putting a woman on the new $20 bill is surely progress, but it's also controversial. And there is still a tremendous gap with female bank CEOs, as well as architects and venture capitalists. Also, Sheila Bair and U.K. regulators talk about how to "fix" the financial system and why it doesn't necessarily require more work on the regulatory front.

Read More from: BankThink

2 weeks 4 hours ago
Receiving Wide Coverage ... Wall Street's Pay Crackdown: Regulators have put forth a proposal to revamp how bankers are paid, a long awaited response following the 2008 financial crisis. Caught firmly in the crosshairs of the newly proposed rules are bonuses. The highest-paid employees at banks would need to wait at least four years to receive portions of their annual pay, and individuals who make risky choices that lead to losses could be forced to returnÂ...

Read More from: BankThink

2 weeks 5 hours ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37927767/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37927767/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37927767/smartcrop?height=853&width=1280" credit="Associated Press" placement="Inline" suppressEnlarge="false" ] SunEdison Inc. filed for chapter 11 protection, saying it wants to curb a major global expansion fueled by debt. Two of the solar-energy company’s publicly traded subsidiaries say they won’t file for bankruptcy 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.”) Teen clothing company Aerpostale Inc. said it plans to file for bankruptcy as soon as this month, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 6 hours ago
Sometimes we forget that the Federal Rules of Bankruptcy Procedure differ from the Federal Rules of Civil Procedure by more than just the numbering scheme that adds two digits to the front of the bankruptcy rules.  The defendants in Rosenberg v. DVI Receivables XIV, LLC, et al., failed to appreciate that there are also different filing deadlines.  The Eleventh Circuit held that in a case tried in the district court arising under the Bankruptcy Code, the Bankruptcy Rules apply.  Thus, the 14-day deadline of FRBP 9015(c) applied to the defendants’ filing of a renewed motion for judgment as a matter of law under FRCP 50(b), and not the 28-day deadline under FRCP 50(b).  As a result, the court held that the defendants untimely filed their motion on the 28th day after judgment, and reinstated the $6.1MM adverse jury verdict.

Read More from: Creditors' Sidebar

2 weeks 10 hours ago
By Andrew J. AbramsBoodell & Domanskis, LLCChicago, IllinoisIn Smith v. SIPI, LLC (In re Smith), 811 F.3d 228 (7th Cir.

Read More from: CLLA Bankruptcy Blog

2 weeks 21 hours ago
Per www.globalinsolvency.com:Thu., April 21, 2016Dubai-based property developer Limitless is set to complete a drawn-out debt restructuring after the final dissenting creditor sold its share of the company's 4.45 billion dirhams ($1.2 billion) debt, sources with knowledge of the matter said on Wednesday, Reuters reported. New York-based Stonehill Capital Management sold its debt in the state-controlled company, worth around $15 million at face value, to Dubai Islamic Bank, an existing creditor and one of the members of the creditor committee, the sources said. The sale means Limitless can now move ahead with its second debt restructuring since Dubai's property crash around seven years ago and begin to try to turn around its fortunes when the emirate's real estate sector is once again going through a softer period. Limitless needed all 18 creditor banks to agree to the plan, which involves extending its debt by two years to December 2018. In return, Limitless will make an advance repayment of 2.07 billion dirhams to creditors, including 1.9 billion dirhams in bank debt and a further 176 million dirhams to trade creditors, using cash from the sale of land in Saudi Arabia. 

Read More from: The COMI

2 weeks 22 hours ago

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