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Headache du jour: This earnings season is all about lowering expectations. When JPMorgan kicks off the process on Thursday, the "big question" isn't about whether firms will meet or exceed projections. Instead, second-quarter results will help determine "whether bank stocks will be dead in the water for another year or two," according to the Wall Street Journal. ...

Read More from: BankThink

2 weeks 3 days ago
Significant changes have taken effect and are expected to continue within the education sector, the result of which may lead to an increase in restructuring activity and additional pressure on funding streams. In the Further Education (“FE”) sector, the Government has introduced “Area Reviews”, whereby FE institutions within a particular geographical area are encouraged to merge with one another in order to consolidate the number of FE providers in that area. The stated aim is to create “fewer, larger and more financially resilient organisations” (1). It is estimated that as many as 1/3 of current FE institutions may disappear as a result of the anticipated consolidations. These mergers will lead to increased pressure on the management teams of FE providers who will have to deal with all the usual issues that combinations bring, such as integration of management teams, service provision and the cultures of the various entities. If those management teams have not undertaken a merger before, it will present them with obvious challenges and may result in reliance upon professional advisors, which will be an additional cost for the institutions to bear.

Read More from: eSQUIRE Global Crossings

2 weeks 3 days ago
By: Donald L. Swanson Mandatory mediation is a good thing [see, e.g., my blog post titled, “Local Bankruptcy Rules Without Mandatory Mediation are Like a Toolbox Without a Vise-Grip“]. But the words “mandatory mediation” refer only to a required process.  They do not suggest any such thing as compelled settlement or compelled concession or even compelled listening. The operative adage for mandatory mediation is this: “You can lead a horse to water but you can’t make it drink.” Online sources say this is the oldest-known adage in the English language.  It dates back to at least the year 1175. The phrase appears thereafter, for example, in a play published in 1602 called “Narcissus“: “Your parents have done what they coode, They can but bringe horse to the water brinke, But horse may choose whether that horse will drinke.” I say this time-honored adage is sufficient authority for what should happen in a mandatory mediation in today’s bankruptcy courts. After all, our bankruptcy jurisprudence and jurisdiction hearken back to “the stuff of the traditional actions at common law tried by the courts at Westminster in 1789” (see, e.g., Stern v. Marshall, 564 U.S. 2 (2011 )).

Read More from: Mediatbankry

2 weeks 4 days ago
Bankruptcy filings follow, logically, consumer debt. When debt goes up, eventually, Bankruptcy Filings Go up. Is Consumer Debt Going Up? Uh, yup. Consumer borrowing picked up a bit in May from the prior month, but the pace of growth remained well below the surge seen in March, suggesting that consumers are still reluctant to run up [...] The post Bankruptcy Filings Going Up? appeared first on Detroit Bankruptcy Lawyer Kurt O'Keefe.

Read More from: Stop Creditor

2 weeks 4 days ago
One of the hardest concepts for clients in bankruptcy to understand is “disposable income”.  Essentially, while you are in an active chapter 13, if you have money or come into money that can be paid to your creditors then that money should go to your creditors.  Specifically, the Bankruptcy Code defines disposable income as “[C] urrent monthly income received by the debtor” less domestic support obligations (i.e., child support, alimony), charitable contributions and money used to continue the operations of the debtor(s) business.  11 U.S.C. § 1325(b)(2) In interpreting the Bankruptcy Code, some districts, like the Southern District of Alabama, are strict about disposable income requiring you to stop voluntary 401k contributions while you are in chapter 13 so that those funds can be disbursed to your creditors.  A recent opinion by the Honorable Judge Dwight Williams in the Middle District of Alabama held that below median debtor(s) are only required to pay only disposable income that becomes available during the first 36 months of the plan regardless for how long they are in chapter 13.

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

2 weeks 4 days ago
We are a consumer bankruptcy law firm helping persons and businesses with their financial situation.  If you believe we can be of assistance to you, please contact us today at johnrogers@glasgow-ky.com  or toll-free at 1-888-651-9353 and put our experience to work for you.  We offer a free initial consultation and we are available to accommodate your schedule and meet with you on weekends or during the evening. We are located in Glasgow, Kentucky at 111 West Wayne Street, one block off of the Square in Glasgow.  Glasgow is conveniently located on the Louie B. Nunn Cumberland Parkway, for those traveling from west or east of Glasgow We are Certified in Consumer Bankruptcy Law by the American Board of Certification… one of the few attorneys in Kentucky so certified www.abcworld.org We are an active member of the National Association of Consumer Bankruptcy Attorneys, serving as Kentucky State Chair of this organization. www.nacba.com We are also have been designated a debt relief agency by Congress and the United States Supreme Court and we provide legal assistance to consumers seeking relief under the Bankruptcy Code.
2 weeks 4 days ago
  There are five major areas of concern when considering filing for Chapter 13 bankruptcy.   1) The first concern is the type of debt. There are certain debts that can be eliminated in a Chapter 13 at less than 100% payback. There are other debts that cannot be eliminated and must be paid back+ Read More The post Chapter 13 Bankruptcy Considerations From A Legal Perspective appeared first on David M. Siegel.
2 weeks 4 days ago
On June 30, 2016, Congress passed and President Obama signed into law a new piece of federal legislation that will govern the restructuring of U.S. territories: Public Law No: 114-187.  Although not limited to the Commonwealth of Puerto Rico, enactment of the new law, entitled the Puerto Rico Oversight, Management, and Economic Stability Act or “PROMESA,” represents a bipartisan achievement in the context of a worsening fiscal crisis in Puerto Rico.  The enactment of PROMESA also comes two weeks after the Supreme Court affirmed the judgment of the First Circuit that the Bankruptcy Code pre-empted the Debt Enforcement and Recovery Act, a restructuring law that had been enacted by the government of Puerto Rico in 2014. 
2 weeks 4 days ago

Banks frequently blame "the rules" in shunning partnerships with fintech startups. However, compliance can be a positive force, not something that inhibits growth.

Read More from: BankThink

2 weeks 4 days ago
I'm testifying before House Financial Services tomorrow regarding the "CHOICE Act," the Republican Dodd-Frank alternative.  My testimony is here.  It's lengthy, but it doesn't even cover everything in the CHOICE Act--there are just too many bad provisions, starting with the idea of letting megabanks out of Dodd-Frank's heightened prudential standards in exchange for more capital, then moving on to a total gutting of consumer financial protection, and ending with a very poorly conceived good bank/bad bank resolution system executed through a new bankruptcy subchapter.  The only good thing about the Bad CHOICE Act is that it has little chance of becoming law any time soon. 

Read More from: Credit Slips

2 weeks 4 days ago

While diversity at the federal agencies overall is roughly consistent with the rest of the country, diversity declines sharply among those in senior leadership roles.

Read More from: BankThink

2 weeks 4 days ago
SynCardia’s total artificial heart By Donald L. Swanson Bankruptcy often deals with failure, loss, and broken promises.  So it has a bad reputation. But bankruptcy often provides a valuable service in time of need.  And we now have a new example of this: –a company that supplies total artificial hearts to people at death’s door. SynCardia Systems, Inc., filed bankruptcy on July 1, 2016, in Delaware. SynCardia’s Total Artificial Heart SynCardia produces a total artificial heart to serves as a bridge-to-transplant for people with advanced heart failure.  SynCardia reports that: –over 1,568 of its artificial hearts “have been implanted globally”; –79% of patients with these implants “survived long enough to receive a heart transplant,” and 70% had a “one-year survival rate”; –SynCardia is “the world’s only supplier” of this artificial heart, so a failure of its business “leaves patients and hospitals with no backup provider”; and –The continuation of SynCardia’s business is essential to people who have or will need one of its artificial hearts: “death can occur in minutes in the event of a material malfunction.” Artificial heart implant process SynCardia’s Financial Problems Long-story-short: SynCardia started running out of money and couldn’t pay its debts.  It made numerous unsuccessful attempts to get new money and eliminate debt.

Read More from: Mediatbankry

2 weeks 4 days ago

Receiving Wide Coverage ...

Holding steady: "Halving" sounds like it should be straight out of Lord of the Rings or The Hunger Games, but it's not. Bitcoin survived its quadrennial event on Saturday, with the reward for mining new bitcoins slashed in half for a second time in the virtual currency's history. The change could thin the herd of bitcoin miners, armed with powerful computer processors, that have popped up around the world. ...

Read More from: BankThink

2 weeks 4 days ago
The Jevic Holding Corp. bankruptcy case is proving to be precedent setting.  In a prior post, we examined how the court had greatly increased the evidentiary burden on a party seeking to hold one company liable for the debts of another company under a “single employer” theory.  That ruling was seen as a boon for private equity firms who were oftentimes the target of Chapter 11 creditor committee claims seeking to make them liable for the debts of their portfolio companies. Now, the U.S. Supreme Court is poised to rule on yet another issue arising from the Jevic case.  On June 28, 2016, the Supreme Court granted a petition for certiorari to decide whether a bankruptcy court may “dismiss a case through an agreement that gives payment to lower-ranking creditors ahead of more senior-ranked creditors.”  This technique is sometimes referred to as a “structured dismissal.” In Jevic, the bankruptcy court approved a settlement among the debtor, the creditors’ committee, the private equity firm and the lead pre-petition lender.  The settlement provided for cash payments and other concessions from secured creditors in return for dismissal of various avoidance actions brought by the unsecured creditors committee.

Read More from: eSQUIRE Global Crossings

2 weeks 5 days ago
N.J. forces mom to pay son’s student loans: Murder ‘does not meet threshold for loan forgiveness’ for guaranteed student loans. Marcia DeOliveira-Longinetti’s son was murdered last year.  After working through the aftermath of this horrific event – arranging a funeral, dealing with the police and closing out her son’s life she turned to the co-signed student loans.  The federal student loans were written off.  But not the New Jersey student loans Marcia co-signed, thus making them guaranteed student loans. “Please accept our condolences on your loss,” a letter from that agency, the Higher Education Student Assistance Authority, said. “After careful consideration of the information you provided, the authority has determined that your request does not meet the threshold for loan forgiveness. Monthly bill statements will continue to be sent to you.”
2 weeks 5 days ago
Has your client filed for bankruptcy? Contact Bernstein-Burkley’s experienced team of attorneys to learn how you can maximize your recovery! 412-456-8100 The vast majority of suppliers, vendors, lessors and lenders have experienced the difficult task of navigating a bankruptcy case.  Certain customers file for bankruptcy due to a significant drop in business that impairs their ability to pay their debts as they come due; others may file to stave off aggressive collection actions.  Whatever the cause, the commencement of a bankruptcy case sets in motion a process designed to afford financial relief to the debtor while ensuring that its creditors have an opportunity to receive fair treatment.  Creditors must understand and take certain critical steps in the bankruptcy to guarantee the best possible treatment of their claims. 1.     Recognize the Red Flags.

Read More from: Bernstein-Burkley, P.C.

2 weeks 6 days ago
Payday loan industry has successfully avoided regulation by shifting from type of loan service to another. What is a payday loan?  The payday lender industry includes payday loans, title loans, short-term loans or quick money loans.  Each of these services have had the same result – lending to very low income, charging outrageous fees and interest with the goal to keep the poor borrower on the financial hook as long as possible or until bankruptcy is filed. An example: in 2010 Arizona voters banned traditional payday lending.  Before the ink was try on the new law payday loan stores converted into auto title loan stores.  The end result was the same – extremely high interest rates (some as high as 500 to 700%).  Some of the payday loan stores moved to Indian reservations, to the Internet or to other countries, all with the intent of avoiding regulation.
3 weeks 11 hours ago
The United States Supreme Court recently struck a blow against unethical and abusive creditors by allowing a class action lawsuit against a debt collector to go forward. The class action suit was initially filed by Saliha Madden, a NY borrower who was joined in the lawsuit by other debtors who objected to Encore Capital Group’s annual interest rate of 27 percent on debts. Madden owed approximately $5,000 in credit card debt that she had accumulated with Bank of America several years earlier. After Encore Capital Group purchased the debt from Bank of America, the debt collection company sought to impose the exorbitant interest rate on Madden. Madden and the other debtors in the class action lawsuit claimed that Encore Capital had violated the federal Fair Debt Collection Practices Act by charging the excessive interest rates on their debts.
3 weeks 17 hours ago
Essar Steel Minnesota LLC and its parent, ESML Holdings Inc., which operate an open-pit mine and greenfield pellet plant in Minnesota, have commenced cases (Case Nos. 16-11627 and 16-11626, respectively) under Chapter 11 of the Bankruptcy Code by filing petitions with the U.S. Bankruptcy Court for the District of Delaware.  The Honorable Brendan Linehan Shannon will preside over the cases.  More documents are available from the Court’s website. Contact Norman L. Pernick, Nicholas J. Brannick, or David W. Giattino for more information.
3 weeks 17 hours ago

Turmoil in marketplace lending has less to do with loan quality and more to do with how lenders price loans to meet supply and demand.

Read More from: BankThink

3 weeks 19 hours ago

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