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Have you wondered what is meant by the term “mortgage arrearage?” As Bankruptcy Law Network member Jonathan Ginsberg explains, a mortgage arrearage simply refers to any missed mortgage payments. If, for example, you did not pay your mortgage in January and February, those two months would be in arrearage. As bankruptcy lawyers, we frequently represent clients who have mortgage arrearages. Chapter 13 bankruptcy allows us to cure your arrearage by including your missed payments plus any fees and lender attorney’s fees into your Chapter 13 plan. Since Chapter 13 plans can last up to 5 years, we may have up to 5 years to cure your arrearage. If you fall behind in mortgage payments that come due after we file Chapter 13, we would have to deal with your post-petition arrearage.  In Atlanta, where I practice, Chapter 13 debtors pay their post petition mortgage payments directly to the lender.  If one of my clients falls behind in his post-petition mortgage payments, the judge will give us several months to cure that post petition arrearage.

Read More from: Bankruptcy Law Network

2 weeks 3 days ago

Female CEOs are uncommon, so how rare do you think female CEO-CFO teams are? At publicly traded banks, there are only 13, and that is still way better than a few other industries. InVenture founder Shivani Siroya talks about her past in banking and the future of her fintech startup. An Australian bank is going to test gender blind recruitment practices. Also, rewriting Silicon Valley's history and the Spice Girls' girl power legacy.

Read More from: BankThink

2 weeks 3 days ago
A Chapter 13 debtor filed for bankruptcy on September 11, 2014. Within the Chapter 13 case, he planned on repaying approximately $4,700 worth of parking tickets owed to the city of Chicago. The proposed plan was going to pay back approximately 10% to 20% of those parking tickets over a 3 to 5 year term.+ Read More The post Parking Tickets Incurred After Filing Chapter 13: What Can Be Done? appeared first on David M. Siegel.
2 weeks 3 days ago
Death Row Records Files For Bankruptcy Death Row Records’ saga of financial issues that has plagued the label since the early 2000’s might finally be coming to an end this year. Reports claim that the current owner of the label, WIDEawake Entertainment Group Inc., is filing for bankruptcy and wants to sell Death Row Records in order to save the company. What exactly is bankruptcy? Bankruptcy is a legal term. When a person or business entity accumulates a large amount of debt that they cannot pay back, they may file for bankruptcy. Typically a debtor will hire a lawyer to help add up the total amount of assets the filer has and how much accumulated debt they owe. If it is clear that the debtor cannot pay back the debt, then they can proceed with filing for bankruptcy. If successful, all debts the debtor owes will cease. Bankruptcies typically stick to your credit for ten years and make it difficult to get loans, credit cards, a house, car, etc. So only proceed with filing for bankruptcy if you are prepared to deal with the not so glamorous side of it. The history of one of the biggest record labels of the 1990’s

Read More from: My AZ Lawyers

2 weeks 3 days ago
As we have noted on the blog before, student loan debt is a huge problem among consumers.  Most of the time, student loan debts cannot be discharged in bankruptcy.  However, if you can prove an undue hardship, the student loan debt can be discharged.  Note that it is rare for a court to find that a debtor meets this burden. Undue Hardship The section of the Bankruptcy Code that deals with student loans and the discharge is 11 U.S.C. § 523(a)(8).  Congress enacted this section of the Bankruptcy Code to prevent students from abusing the fresh start principle of bankruptcy by filing for bankruptcy and attempting to discharge their student loans after graduation.  Section 523(a)(8) states that a bankruptcy discharge does not discharge a debtor from a student loan debt “unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents.” The Brunner Test

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

2 weeks 3 days ago
Triangle USA Petroleum Corporation Files For Chapter 11 Bankruptcy Protection | June 30, 2016 Triangle USA Petroleum Corporation, a direct and wholly owned subsidiary of Triangle Petroleum Corporation (“TPC”), and affiliates filed for protection under Chapter 11of the United States Bankruptcy Code on June 30, 2016 in the United States Bankruptcy Court for the District of Delaware under Case No. 16-11566. The Debtors in these cases, along with the last four digits of each Debtor’s federal tax identification number, are Triangle USA Petroleum Corporation (0717); Foxtrot Resources LLC (6690); Leaf Minerals, LLC (9522); Ranger Fabrication, LLC (6889); Ranger Fabrication Management, LLC (1015); and Ranger Fabrication Management Holdings, LLC (0750). The address of the Debtors’ corporate headquarters is 1200 17th Street, Suite 2500, Denver, Colorado 80202. John R. Castellano is the managing director of AP Services, LLC, the Company’s financial advisor since April 2016, was appointed as the Chief Restructuring Officer of Triangle USA Petroleum Corporation (“TUSA”) on June 28, 2016, and now discusses the filing: Overview of Chapter 11 Filings “On the date hereof (the “Petition Date”), each of the Debtors commenced a case by filing a petition for relief under chapter 11 of the Bankruptcy Code.

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

2 weeks 4 days ago
  The obligations of a co signor is the single most common misunderstanding about the law I see. Put bluntly, a co signor is just as liable for the debt as the primary borrower. Co sign someone else’s debt and you put yourself in the creditor’s cross hairs. It should make the hair on the back of your neck stand up. Cosigner not just a reserve player Too many people who sit in my law office think that their role as a cosigner kicks into action only if the creditor can’t manage to collect from the original borrower. Not so. There is no ranking of the legal obligation:  the co signer is equally liable for the debt.   And the creditor doesn’t have to try to collect against the other party before looking to you to pay. Why a cosigner is needed When you’re asked to cosign for someone, think about the creditor’s motivation. The lender is worried that the original borrower won’t pay as promised.  It’s a troubled loan from the very beginning. You’re being asked to guarantee the loan so the creditor has you on the hook as well.  You’ve become the creditor’s insurance. For all the best intentions of the person who asked you to help with the transactions, life happens.  If the original borrower loses a job, gets sick, files bankruptcy, or even dies, the debt is yours.
2 weeks 4 days ago

Fewer transactions are taking places in branches but banksÂ' brick-and-mortar locations are more important than ever.

Read More from: BankThink

2 weeks 4 days ago
The annual contribution limit for 2016 is $18,000.00, which is unfortunately the same as it was for 2015.  This is the amount employees who participate in 401(k), 403(b), and most 457 plans can contribute.  Federal government employees who contribute to the Thrift Savings Plan (TSP) can contribute this amount as well. It seems the Treasury Department’s increases are set on a 2 year plan.  We saw an increase last year (2015) of $500.00 to the $18,000.00.  2013 and 2014 were in the amount of $17,500.00.  So if the trend continues, maybe next year we will have another increase in limits. Catch Up Contribution If you’re 50 or older you can add an additional $6,000.00 called the catch up contribution.  The 401 (k) catch up contribution is limited to $6,000.00 for 2016.  So that means if you are 50 or older you can put back a total of $24,000 as employee deferrals into a 401(k).  This goes for anyone who turns 50 during the year.  So if you turn 50 on December 31, 2016, then you have the right to the $24,000.00.

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

2 weeks 4 days ago

Receiving Wide Coverage ...

Buy low, sell high: If you're heavily invested in bank stocks, best to shut down your browser, step away from the computer and perhaps apply a cool compress to your forehead. It's ugly out there. Twenty of the world's biggest banks have lost a quarter of their combined market value since the beginning of the year, amounting to nearly half a trillion dollars, according to a Wall Street Journal analysis. Turns out...

Read More from: BankThink

2 weeks 4 days ago
Farm Facilities — Out of Operation By Donald L. Swanson I don’t need to see a study or commission report for the title of this article. I’ve seen the problem play out many, many times in real life. Here is an attempt to explain. Some Propositions Proposition # 1: When one party has 0% odds of success at trial, a mediation effort is a complete waste of time. Proposition # 2: The absolute priority rule is a Chapter 11 plan confirmation standard requiring that creditors either, (1) be paid in full, or (2) agree to something less. Proposition # 3: Many individual Chapter 11 debtors who can’t pay all debts in full have 0% odds of getting a Chapter 11 plan confirmed over objection of creditors insisting on liquidation. Proposition # 4: Individuals are living beings who need a “fresh start”– entities aren’t . . . and don’t. A Farm Crisis Days Illustration These propositions are based on long and hard experience from the 1980s Farm Crisis days. The cattle are gone. Here is how it worked, back then, in pre-Chapter 12 days: –Most farms are sole proprietorships, so farmer reorganizations are almost always individual Chapter 11s. –The Farm Crisis is precipitated by, (1) a dramatic drop in prices of corn, beans, cattle, hogs, used equipment, farm land, etc., and (2) an interest rate spike beyond 18%. –Farmers in Chapter 11 are, uniformly, unable to pay their debts in full — it’s not even close.

Read More from: Mediatbankry

2 weeks 4 days ago
Well, the answer, of course, is YES!!!   History of Student Loan Discharge in Bankruptcy Student Loan Debt Piles On Back when I started practicing, student loans were dischargeable in bankruptcy. You just had to file 5 years after the first repayment was due. And that was before the means test requirement, and even the budget showing future anticipated income and expenses. Every time student loan discharge provisions in bankruptcy law has been changed since, it has been made more difficult to get student loans discharged. The 5 years went to 7 in 1990, then eliminated completely in 1998. In 2005, private student loans were added to the non-dischargeable list. Meanwhile, the amount of student loan debt exploded, both in total amount, and average student loan debt carried by each borrower. The Department of Education has been making it easier to administratively discharge student loans in cases of disability or other extreme hardship. How extreme?
Kevin Daniel DeOliveira, a student at the University of Vermont, was shot to death in January 2015. The murder was likely connected to drugs, according to the Burlington Free Press.

Read More from: Discharge Student Loan

2 weeks 4 days ago
Plenty of ink has been spilled about how to apply the U.S. Supreme Court’s decision in Stern v. Marshall and the line of cases in which it sits. It is a challenging body of law for many reasons, but perhaps the most difficult reason is that the Court indicated that the scope of power that bankruptcy courts may be given today must be defined by reference to beliefs about the scope of judicial and other governmental powers at the time of the country’s founding, when divisions of governmental power were embedded in the U.S. Constitution. The Court said, “we have long recognized that, in general, Congress may not ‘withdraw from judicial cognizance any matter which, from its nature, is the subject of a suit at the common law, or in equity, or admiralty.’” Such a fundamental commitment to founding principles when it comes to exercising—and limiting—governmental powers is beneficial for obvious reasons. A harder question though, for practitioners and courts alike, is how to apply a historical approach in modern practice. 
2 weeks 4 days ago
Action Item.  Issues relating to first offer arrangements, non-monetary terms, settlement documentation, number of sessions, and use of an assistant mediator need to be discussed in advance by the mediator with parties and their attorneys to prepare for multiparty mediation sessions. Advance communications on subjects identified in this three-part series will significantly enhance the efficiency … Continue reading "ACTION ITEM: From Preparing for Multiparty Mediation — Part Three"

Read More from: Mediatbankry

2 weeks 4 days ago
A recent study by the Federal Reserve Bank of Boston (Boston Fed) found that the number of people racking up credit card debt is going up, with just 35 percent of credit card holders in the United States actually paying off their monthly balances in full. Whether it’s a person who simply elects to hold off on paying their credit card debt immediately or it’s a person who has no choice but to accumulate debt and later attempt to negotiate a payment plan with the credit card company, credit card debt is a serious problem for many consumers. Researchers who conducted the study used information obtained via the Federal Reserve Bank of New York Consumer Credit Panel (CCP), which has a small sample of every credit account in the U.S. between 1999 and 2014 covered by Equifax, one of the major credit reporting agencies. Some of the most important findings of the study include:
2 weeks 4 days ago
It has been a while since I last checked in on bankruptcy filing rates. The arrival of the latest figures from Epiq Systems was a welcome reminder to do so. We are at the halfway point for the year, and the U.S. has had 398,000 bankruptcy filings. It is tempting to simply double that figure to get an estimate of what filings will total for all of 2016, but that estimate would be too high. Bankruptcy filings are somewhat more concentrated in the first six months of the calendar, which have accounted for about 52% of yearly filings for the past two years. Extrapolating from recent experience would mean there will be 764,000 filings for the calendar year. That would be a 6.7% decline in filings from 2015. Back in January, I forecasted a 5% decline or 780,000 filings for 2915. Given that we are well within the confidence interval of that estimate, I will take that. Although we still have half the year left to go, the model I use for the forecasting looks to be holding up.

Read More from: Credit Slips

2 weeks 4 days ago
After a hearing on the approval of a disclosure statement, Judge Edward J. Coleman of the Middle District of Georgia ruled that the absolute priority rule and new value exception apply in individual Chapter 11 cases.  In re Rogers, Ch. 11 Case No. 14-40219, 2016 WL 3583299 (Bankr. M.D. Ga June 24, 2016) (click here for .pdf of opinion). Debtors were the sole owners of Wetdog LLC, which in turn owns the Foley House Inn in Historic Savannah.  After a default in payments to Wetdog’s secured creditors, Wetdog filed a Chapter 11 petition.  Wetdog’s Chapter 11 Plan was confirmed in September 2014.  The individual Debtors, because they were guarantors of the Wetdog debt, filed their own Chapter 13 petition in February 2014 and subsequently converted their case to a Chapter 11 case.  Their principal asset was their 100% ownership interest in Wetdog.  Debtors filed a Plan and Disclosure Statement that called for a 25% distribution to unsecured creditors other than the two secured creditors of Wetdog.  Debtors’ Plan called for no distribution to those creditors as they were being paid in full in the Wetdog Plan.  Debtors also proposed to retain all non-exempt, pre-petition property, including their interest in Wetdog which they valued at $00.00.

Read More from: Georgia Bankruptcy Blog

2 weeks 4 days ago
Debt collector Debt collector John Williams, owner of Williams, Scott & Associates LLC, a debt collection firm, told his employees to coerce consumers into paying money they did not owe, according to article in Reuters, by Nate Raymond.   Employees at Williams’ firm falsely claimed to be a “detective” or “investigator,” or tied to government agencies. Consumers were also told they could be arrested or face prison time if they refused to pay.  LIES!! According to Assistant U.S. Attorney Sarah Paul Williams’ firm defrauded 6,000 customers from 2009 to 2014 into paying about $4.1 million by misrepresenting how much they owed and by falsely claiming they could face prison time.  In late 2014 the FBI raided the debt collector and the Federal Trade Commission (FTC) sued to halt its operation. Debt collector firms such as Williams’ buy delinquent debts, often for just pennies on the dollar, and try to collect the full amount the original lender claimed. Many of these debts are, by law, uncollectable, such as discharged in bankruptcy or outside the statute of limitations.
2 weeks 4 days ago

Millennials, who alreadymake up a third of banked consumers in America, are used to transacting life in clicks and swipes. Institutions must embrace their needs now or risk extinction.

Read More from: BankThink

2 weeks 5 days ago
Upcoming Committee Formation Meeting: Wednesday July 12, 2016, 2:00 PM Case Name:  Triangle USA Petroleum Corporation., et al. Case Number:  16-11556 (MFW) Location:  The Double Tree Hotel, 700 King Street, Salon D, Wilmington, DE 19801 Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. The petitions (including the consolidated list of top 20 creditors), the first day declaration and the docket are available through Prime Clerk.  The debtors have issued a press release regarding their reorganization. More information about this filing can be found here.
2 weeks 5 days ago

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