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Receiving Wide Coverage ... An Uneven Recovery: Home prices are appreciating in wealthier areas, but values in poorer towns continue to lag behind, the Wall Street Journal reports. In the working-class suburb of Lithonia, Ga., for example, 54% of homeowners are underwater; the same is true of 15% of homes worth less than $200,000 nationwide, compared to just 6% of homes worth more than $200,000. One way to help struggling homeowners could be to slash the...

Read More from: BankThink

1 week 4 days ago
Bankruptcy Proofing Your Contracts: A Summary of Bankruptcy Protection Devices Bankruptcy Proofing Contracts| The never-ending quest for suppliers of credit, goods and services is to create the contracts and procedures that will insulate them from the consequences of bankruptcy filings by the counterparties to their agreements. This article touches on many of the methods and concepts that can be used by general and outside counsel to minimize the negative effects of bankruptcy on your contracts. The post Bankruptcy-Proofing your Contracts? appeared first on Culhane Meadows PLLC - Chapter 11 Business Bankruptcy Attorneys.

Read More from: Richard G. Grant, P.C.

1 week 4 days ago
This is the next post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece).We’ve switched over to Section F of the Report regarding “Plan Voting and Confirmation Issues.” Subsection 3, the focus of this post, addresses “Designation of Voting Rights.” Background Under Section 1126(e) of the Bankruptcy Code, on the request of a party-in-interest and after notice and a hearing, the court may “designate any entity whose acceptance or rejection of [a Chapter 11] plan was not in good faith or was not solicited or procured in good faith or in accordance” with the requirements of Chapter 11. In other words, the court may disqualify votes that were not made in good faith. The requesting party has a heavy burden of proof. Although self-interest, alone, is not enough, courts often find “bad faith” when a claimant: 
  • Attempts to obtain a personal advantage not available to other creditors in its class;
  • Has an “ulterior motive” (e.g., pursuit of collateral or competitive advantage unrelated to its claim);
  • Acts inconsistently with protecting its self-interest as a creditor;

Read More from: Plan Proponent

1 week 4 days ago
Deirdra Renee Gause v. Citifinancial Services, Inc. (In re Deirdra Renee Gause), 525 B.R. 35 (Bankr. M.D. N.C. 2014) – A chapter 13 debtor sought a court determination that a mortgage loan was unsecured because there was a small typo in her … Continue reading →
1 week 4 days ago
I've been a skeptic for some time about claims that we have a student loan "crisis" in the United States. For individuals mired with student loan debt, it is very much a crisis, of course.  But my reluctance to term growing levels of student loan debt a crisis reflects the fact that student loan debt is highly concentrated within the population and is generally structured in a way that does not create sharp liquidity crises:  long (and often deferrable) maturities, no sharp repayment shocks, and often offers established repayment and forgiveness programs. (This is more true of government loans than private loans.) And, while student loan debt is growing rapidly, it is still only about a 9th of the size of the mortgage market. All of this has kept the student loan kettle from boiling over.  

Read More from: Credit Slips

1 week 4 days ago
Students wait outside Everest College on April 28 in Industry, Calif., hoping to get their transcriptions and information on loan forgiveness and transferring credits to other schools.
Christine Armario/Associated Press
Only a fraction of former students are likely to file a claim in Corinthian Colleges Inc.’s bankruptcy case, according to a law firm representing them, as students armed with little information face numerous administrative tasks to recoup losses. “If the process goes as it is, maybe 6% of students will file the appropriate papers,” said Mark Rosenbaum of Public Counsel, which is one of the law firms representing students in Corinthian’s bankruptcy case. Any of the 81,000 former Corinthian students who believe they were defrauded by the schools, which include Everest, Heald and WyoTech campuses, are eligible to submit claims to the bankruptcy court. The form, known as a proof of claim, would make students eligible to participate in any recovery lawyers obtain on behalf of students if verified by the bankruptcy court. Students have until July 20 to complete the forms, or they could forfeit their right to any recovery in Corinthian’s bankruptcy case.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Students wait outside Everest College on April 28 in Industry, Calif., hoping to get their transcriptions and information on loan forgiveness and transferring credits to other schools.
Christine Armario/Associated Press
Only a fraction of former students are likely to file a claim in Corinthian Colleges Inc.’s bankruptcy case, according to a law firm representing them, as students armed with little information face numerous administrative tasks to recoup losses. “If the process goes as it is, maybe 6% of students will file the appropriate papers,” said Mark Rosenbaum of Public Counsel, which is one of the law firms representing students in Corinthian’s bankruptcy case. Any of the 81,000 former Corinthian students who believe they were defrauded by the schools, which include Everest, Heald and WyoTech campuses, are eligible to submit claims to the bankruptcy court. The form, known as a proof of claim, would make students eligible to participate in any recovery lawyers obtain on behalf of students if verified by the bankruptcy court. Students have until July 20 to complete the forms, or they could forfeit their right to any recovery in Corinthian’s bankruptcy case.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Students wait outside Everest College on April 28 in Industry, Calif., hoping to get their transcriptions and information on loan forgiveness and transferring credits to other schools.
Christine Armario/Associated Press
Only a fraction of former students are likely to file a claim in Corinthian Colleges Inc.’s bankruptcy case, according to a law firm representing them, as students armed with little information face numerous administrative tasks to recoup losses. “If the process goes as it is, maybe 6% of students will file the appropriate papers,” said Mark Rosenbaum of Public Counsel, which is one of the law firms representing students in Corinthian’s bankruptcy case. Any of the 81,000 former Corinthian students who believe they were defrauded by the schools, which include Everest, Heald and WyoTech campuses, are eligible to submit claims to the bankruptcy court. The form, known as a proof of claim, would make students eligible to participate in any recovery lawyers obtain on behalf of students if verified by the bankruptcy court. Students have until July 20 to complete the forms, or they could forfeit their right to any recovery in Corinthian’s bankruptcy case.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Allen Kors is Founder and CEO of Achieve Lending, the first  search engine for private student loans. Kors says students can use the Achieve Lending platform to shop, compare and choose between lenders and interest rates, often in as little as 30 seconds. Launched last year to help take some of the confusion out of the education marketplace, Kors says he wants to help students avoid the often catastrophic effects of misguided financial decisions.  Read more here.
1 week 5 days ago
Risk-based premiums should apply to big banks as well as small ones. That's because the assessment would have an immediate impact on big banks' quarterly profits, thereby appropriately charging them for the competitive advantage and privilege afforded by their size.

Read More from: BankThink

1 week 5 days ago
Authored by Samantha Alves Orender of Rogers TowersFlorida 1st DCA Distinguishes Between Amending a Final Judgment under Florida Rule of Civil Procedure 1.540(a) and 1.540(b) as to Mistakes In Lorant v. Whitney National Bank, decided February 24, 2015, Florida’s First District Court of Appeal considered whether Florida’s Rules of Civil Procedure provide for the ability to correct “clerical mistakes” nearly three years after the entry of a final judgment. The court held that amending the order to clear up the litigation status of the parties was not a “clerical mistake” as anticipated in Rule 1.540(a). Specifically, Rule 1.540(a) allows for any “clerical mistakes” or errors in a judgment to be corrected for—as the First District put it—an “indefinite period of time.” On the other hand, Rule 1.540(b) allows for the correction of “mistakes” or “inadvertence” for a “reasonable time” not to exceed one year after the court enters judgment.

Read More from: Florida Banking Law Blog

1 week 5 days ago
“Smokey, this is not ‘Nam. This is [bankruptcy]. There are rules.” – Walter Sobchak, The Big Lebowski (as modified) Does technical noncompliance with the Bankruptcy Rules and the official proof of claim form warrant disallowance of a claim, or does that approach simply put form over substance?  Do you think the answer is clear?  Think again.  It turns out that courts are divided on whether noncompliance with the stated requirements of the Bankruptcy Rules and the official proof of claim form can, alone, warrant disallowance of claims.  Or is it all just a tempest in a teapot?  Let’s see, shall we?  In In re Tatro, the chapter 7 debtor was formerly a licensed stock broker and investment advisor (with the emphasis on “formerly”).  After Tatro commenced his chapter 7 case, a group of over one hundred claimants (all represented by a single law firm) filed 102 separate, but substantially identical, proofs of claim.  Each of the proofs of claim attached a one-page rider stating that the documents evidencing the claimant’s investments and losses thereon were too “voluminous” to attach and to “[p]lease advise if something specific is needed.” Enter Bankruptcy Rule 3001, which provides:
1 week 5 days ago
In its decision in Janvey v. The Golf Channel, 2015 WL 1058022 (5th Cir. 2015), the Fifth Circuit reiterated its requirement that value for purposes of the Uniform Fraudulent Transfer Act requires a showing of value to the transferor’s creditors where the transferor was operating a Ponzi scheme.  The facts in the case were undisputed.  Stanford International Bank operated a Ponzi scheme over the course of many years.  In order to increase its name recognition, Stanford decided to sponsor the St.

Read More from: Creditors' Rights

1 week 5 days ago
Congress should avoid becoming so focused on the problems with big banks that they overlook the community lenders suffering from a lack of regulatory relief.

Read More from: BankThink

1 week 5 days ago
Subpoenas Are Rare In Bankruptcy Subpoenas issued in consumer related bankruptcy cases are rare. They are usually issued by the United States Trustee pursuant to an investigation as to dischargeability. Although ordinary creditors do have the right to conduct 2004 examinations with court approval and subpoena documents, they often will not undergo the process because+ Read More The post Responding To A Subpoena To Produce Documents In A Bankruptcy Case appeared first on David M. Siegel.
1 week 5 days ago
Receiving Wide Coverage ... Save Hamilton: Ben Bernanke has joined the growing chorus of those who say the Treasury should bump Andrew Jackson from his perch on the $20 to make way for the first woman on U.S. currency Â-- and leave Alexander Hamilton be on the $10. The former Fed chief writes on his blog that he's "appalled" by the plan to push aside Hamilton (who Bernanke calls "without doubt the best and most foresightedÂ...

Read More from: BankThink

1 week 5 days ago
Rifles sit on display in the Colt’s Manufacturing Co. booth on the exhibition floor of the 144th National Rifle Association (NRA) Annual Meetings and Exhibits at the Music City Center in Nashville, Tennessee, on Saturday, April 11.
Daniel Acker/Bloomberg News
Gun maker Colt Defense LLC has pushed back until Wednesday a planned showdown with bondholders that are offering what they say is a superior financing package to get the company through 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.”) The federal government may try to assess damages against Altegrity Inc., the bankrupt parent of a government security investigations contracting business that is been accused of fraud in a whistleblower lawsuit, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 5 days ago
Rifles sit on display in the Colt’s Manufacturing Co. booth on the exhibition floor of the 144th National Rifle Association (NRA) Annual Meetings and Exhibits at the Music City Center in Nashville, Tennessee, on Saturday, April 11.
Daniel Acker/Bloomberg News
Gun maker Colt Defense LLC has pushed back until Wednesday a planned showdown with bondholders that are offering what they say is a superior financing package to get the company through 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.”) The federal government may try to assess damages against Altegrity Inc., the bankrupt parent of a government security investigations contracting business that is been accused of fraud in a whistleblower lawsuit, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 5 days ago
Rifles sit on display in the Colt’s Manufacturing Co. booth on the exhibition floor of the 144th National Rifle Association (NRA) Annual Meetings and Exhibits at the Music City Center in Nashville, Tennessee, on Saturday, April 11.
Daniel Acker/Bloomberg News
Gun maker Colt Defense LLC has pushed back until Wednesday a planned showdown with bondholders that are offering what they say is a superior financing package to get the company through 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.”) The federal government may try to assess damages against Altegrity Inc., the bankrupt parent of a government security investigations contracting business that is been accused of fraud in a whistleblower lawsuit, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 5 days ago
  ASSET EXEMPTION DESCRIPTION LAW IMPORTANT CASES & NOTES Homestead $60,000 of home equity. No more than 2 lots in City or Village, 160 acres farmland. Sales proceeds protected for 6 months. §40-101, 40-111, 40-113 Must reside in the home on the date the bankruptcy is filed to claim exemption. Life Insurance & Annuity Contracts Life insurance or annuity contract proceeds to $100,000 §44-371 Exemption only applies to cash values accrued more than 3 years prior to filing bankruptcy. Fraternal benefit society benefits of up to $100,000 44-1089 Retirement/Pension Stock, Pension, or Similar Plan or Contract. §25-1563.01 Limited to an amount “reasonably necessary” for the support of the debtor. Tax Exempt Retirement Accounts 11 U.S.C. §522 In re Euse (2011) Nebraska debtors qualify for the federal exemption of tax deferred retirement accounts in addition to §25-1563.01. County Employees §23-2322 Military Disability Benefits to $2,000 §25-1559 School Employees §79-1060, 79-1552 State Employees §84-1324 State Patrolmen §60-459, §81-2031 Legislators §24-710.02 Judges §50-916 Burial Plot §12-517 Crypts, lots, tombs, niches & vaults §12-605 Perpetual Care Funds §12-511 Clothing §25-1556 Food & Fuel to last 6 months §25-1556 Household Goods & Furniture $1,500 per debtor §1556
1 week 5 days ago

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